Check out the SPIN over poor holiday sales:

[Lorien]

(snip)


Total sales were down 7 percent to $6.7 billion on Saturday, compared with the same Saturday in 2003, according to ShopperTrak. ShopperTrak will be releasing sales for the overall weekend later on Monday.

Niemira noted that luxury stores — which have enjoyed robust sales as their well-heeled customers have benefited from the economy's recovery — had the best performance. Stores like Sears, Roebuck and Co. and J.C. Penney Co. Inc. that catered to the mid- to-low income shoppers, who have pulled back on spending as they have been more vulnerable to higher heating costs and a volatile job market, attracted big crowds with deep discounts and expanded shopping hours.

What is hurting merchants is that there is no must-have item, except in consumer electronics — iPod music players and the PlayStation2 (news - web sites) video game console, for example, have become difficult to find in many areas, according to Marshal Cohen, senior industry analyst at NPD Group Inc., a market research company based in Port Washington, N.Y.

from:http://story.news.yahoo.com/news?tmpl=story&cid=509&ncid=749&e=10&u=/ap/20041220/ap_on_bi_ge/holiday_shopping

Yes, the economy is recovering enough that LUXURY sales are booming, but since we middle and low income earners can't find that "must have" item, sales are down.At least they throw a bone of reality into the mix-Sears shopper are more likely to be effected by heating prices and the volitle job market (in this "recovering" economy"). They just can't come out and say it; we're either too poor to shop or we're boycotting, and as far as luxury sales go; America is now a country by the rich and for the rich. The rest of us exist only to serve...and HOW long can this continue?

[TahitiNut]

1. It's been going on for 25+ years and getting worse.

It's all in the Gini Index (which people would do well to better understand) ...




One thing should be obvious to any progressive/liberal: If it wasn't "good" to have a lower Gini Ratio, even in the U.S. and even under capitalism, then "whites" wouldn't be lower than "all families" for the entire period shown. :shrug:

[crispini]

2. Is there a good link or short explanation

for the GINI index? First I've heard of it.

[TahitiNut]

3. Google is your friend. ;-)

You can start at Wikipedia at http://en.wikipedia.org/wiki/Gini_coefficient

Here're some other good links ...
http://www.undp.org/hdr2003/indicator/indic_126_1_1.html
http://berclo.net/page01/01en-gini-coef.html
http://www.paho.org/English/SHA/be_v22n1-Gini.htm
http://www.statistics.gov.uk/about/methodology_by_theme/gini/default.asp
http://www.tutor2u.net/economics/content/topics/poverty/gini_coefficient.htm

Be aware that it's variously called the "Gini Index," "Gini Ratio," and "Gini Coefficient."

[crispini]

4. Yeah, but sometimes it's more fun to ask. :D Thanks! n/t

[kayell]

6. I found this part of the wikipedia article especially interesting.

Gini coefficients in selected countries

(from the United Nations Human Development Report 2004)

Australia: 0.352
China: 0.447
France: 0.327
Germany: 0.283
India: 0.325
Japan: 0.249
Mexico: 0.546
UK: 0.360
USA: 0.408

It is an interesting fact that while the most developed European nations tend to have values between 0.24 and 0.36, the United States has been above 0.4 for several decades. This is an approach to quantify the perceived differences in welfare and compensation policies and philosophies.

[TahitiNut]

7. Yes, when you see the Gini ratio for various countries ...

... it becomes clearer that we're now a banana republic. It's my estimate that our Gini ratio is now around 0.45.

The UNDP's HD report at http://www.undp.org/hdr2003/indicator/indic_126_1_1.html offers a good perspective of other countries' Gini ratios. Be sure, however, to understand that they show a "Survey Year" that's 7-9 years ago. To see the Survey years, see http://www.undp.org/hdr2003/indicator/indic_119_1_1.html

[Lydia Leftcoast]

10. That's for sure!

A higher GINI index than India?

[Lorien]

5. Another related article:

The haves are having a good holiday

December 19, 2004

BY ANNE D'INNOCENZIO

NEW YORK -- This holiday season, Vincent Cassanetti, 60, a wealthy retired business owner, is helping to keep luxury sales booming.

The Palm Beach, Fla., resident has spent $50,000 on gifts for his wife and children, including $600 shoes from Jimmy Choo and Chanel, as well as designer handbags, jewelry and clothing. That's up from about $35,000 a year ago. "This is a really good Christmas," he said.

But that's less the case for Eileen Brosko, 70, a retiree who has seen her stock portfolio dwindle to a quarter of its value a few years ago.

"At my age, I am not doing too much buying. I don't feel secure," said the Parsippany, N.J., resident. She, her husband and their family exchanged names and are limiting the price of gifts to no more than $50 each. For her grandchildren, she bought tickets to a show at Radio City Music Hall.

The holiday 2004 season is turning out to be sharply divided between the haves and the have-nots.

http://www.suntimes.com/output/business/cst-fin-shop19....

[Merrick]

8. Or perhaps its cuz the countries our jobs went to dont celebrate xmas...

just a theory.

[Lorien]

9. And if they do

they aren't spending those Christmas dollars here!

Trade deficit, anyone?

[InvisibleTouch]

11. "Must Haves"

I've totally re-definied my definition of a "must-have" item. Must have is nutrition, shelter, and health care for self and pets; transportation, utilities, and a working computer system. I've got about all the household items, appliances, and clothing I need, so no reason to buy more just to have something new. I'd add books and music to my essentials list, but the public library is a wonderful thing. Everything else is expendable.

I quite admit, I wanted an iPod for a while, until I learned that they only have 12-18 months of battery life in them, and you can't replace the batteries. Yeah, you can send it back to the manufacturer and they'll put in a new battery, but it takes weeks, at additional expense and hassle. I can do without.....

BTW, Merry Christmas/Happy Holidays to all the conscientious people in this forum.... :)