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Why Are American Consumers Expected To Spend Less This Christmas

America is the base of the global economy. If the American economy is struggling, the global economy will feel the impact. Unfortunately, the American economy has been hit hard by the coronavirus pandemic. Businesses all across the nation were forced to shutter their doors, calling for millions of part- and full-time workers to be laid off. This was an unexpected tragedy that no one saw coming.  Christmas is the most celebrated holiday in the United States. Beginning in or around October 1st, American consumers begin their Christmas shopping, buying gifts for loved ones, friends, and close acquaintances. Will this year be the same? Find the answer in the article below.

Limited Unemployment Benefits

American President Donald Trump authorized for coronavirus-impacted workers to receive an additional $600 in unemployment benefits. Unemployment benefits vary from worker to worker, depending on salary and work status. Unfortunately, unemployment benefits do not always make up for lost wages. The average weekly unemployment check is $378, which is limited for many full-time workers. With the additional $600, eligible candidates would be able to pay their rent, mortgage, and other monthly bills without financial strain. The $600 additional payment was later reduced to $400 in some states and $300 in others. Some unemployment participants did not agree with the reduction because of one reason or another. But, financial analysts believe the high volume of unemployment cases will put a damper on holiday spending.

Fear Of Permanent Job Loss

Another factor that is expected to impact Christmas spending is the fear of permanent job loss. While some workers are guaranteed to return to their jobs, others will not be so fortunate. In fact, impacted-companies all throughout the United States are preparing to file bankruptcy. These impacted-companies include GNC, J.Crew, Gold’s Gym, Neiman Marcus, Pier 1 Imports, Modell’s Sporting Goods, Earth Fare, Sheridan Holding Company, Bridgemark, Kroger, J.C. Penney, Lowe’s, and Children’s Place.

To offset the financial losses reported throughout the United States, President Trump pledged billions of dollars to small businesses. Unfortunately, federal funding will not be enough to prevent permanent closure for some impacted businesses.The fear of permanent job loss is expected to have a negative impact on 2020 holiday spending. Some impacted workers are turning to Bandar Bola online to recover some of their financial loss. 

Fewer Family Gatherings

While Santa is a fictional character utilized to enhance excitement around the holidays, no-show rumors are spreading across the nation. While these are only jokes, the COVID-19 is not a joke. It is a serious virus that is threatening the lives of humans around the globe. As most Americans are aware, Dr. Fauci is heading the COVID-19 health care team. Fauci continues to call for a future shutdown of the entire country. Fortunately, not all politicians agree with Fauci’s agenda. 

This year, the coronavirus pandemic will stick in the minds of American consumers while they do their Christmas shopping. Will this impact the overall holiday spending? Well, financial analysts seem to think so.In the meantime, American families are wondering what will happen with their holiday plans. Family is very important to Americans, especially around the holidays. Just a few days ago, Fauci went public calling for holiday restrictions and travel advisories. He is asking all Americans to stay home and not gather for Christmas dinner. Of course, this will not fly for most American families because the holidays are an intricate part of their lives.

Fear Of Another Lockdown

American businesses fear another shutdown. Currently, there is no retail, grocery, or big-box store in full operation. In fact, most are only operating at half-capacity because their workers are on unemployment. Plus, federal and state coronavirus restrictions are also very limiting. It is unclear how many of the impacted businesses will fully recover from the pandemic. 

Conclusion

Fewer holiday gatherings, layoffs, less holiday spending, and fears of permanent job loss will take their toll on the average American’s Christmas celebration. The good news is the coronavirus is not expected to last forever. However, the impact of the pandemic will leave devastation in its path. The devastation will be felt by other countries as well. Countries that are reporting a high volume of COVID-19 cases include the United States, India, France, Brazil, Italy, China, and Russia.

 

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