Christmas season is upon us, and consumers are feeling the crunch of rising prices of commodity goods. Coupled with stagnant wages and dismal jobs numbers, the strain to the economy is palpable as stores are reporting low number of shoppers and decreasing sales. It seems the Christmas spirit is nowhere to be found. And the thing is, the government seems unable to solve the problem.
Household budgets are on a tight leash now as prices of basic goods continue to rise. Meanwhile, wages are stagnant which leaves many families struggling to make ends meet. This deadly combination results in lower spending which in turn impacts the reported low sales of businesses.
The recent reports on high unemployment and underemployment rate makes it difficult for people to make a decent budget for their families. This compounds the problem as people without jobs are unable to contribute to the general economy through spending.
It is usual to expect that the holiday season will boost the economy due to traditional shopping rush. Unfortunately, it seems that this is not happening as high prices and low income continue to put a damper on the holiday spirit.
It should be obvious that government intervention is needed. Inflation must be curbed soon, and new wage legislation should be on top of the government’s priorities. More importantly, more jobs must be created in order to jump-start economic growth.
Right now, people are wondering what the future holds. But one thing is certain, the coming holidays will not be as merry for many people.
Entriprenyur.Com is a Philippine-based business information and social entrepreneurship website. It seeks to highlight the important role of small scale business enterprises in the overall growth of the economy.