Can the American Consumer save the day ... Again?

As many of us look outside now, we probably see much of the same scene - lights and decorations being taken down from the houses across the streets, artificial trees being boxed up and preserved for its use next year, the last of the leftovers being tossed into the garbage cans and readied for pick up.

It amazes me every year to see holiday decorations, music, and even movies start cascading their way through the aisles and across my television screen - it amazes me because of the early start that the holidays always seems to get. As a child, holiday decorations and music began to peak out just after Thanksgiving... Now bits and hints of Christmas begin to show as early as September.

Also amazing is the money spent. Although there are so many complaints from people of all traditions, religions, and practices about how commercialized Christmas has become, people continue to buy into it every year. Wrapping papers, window stickers, ornaments and bulbs. It's truly amazing at how much money people spend every year on a holiday that feigns the Christmas Spirit.

According to recent reports, Americans spent more during the Christmas Season of 2010 than they had since the start of this recession - having spent $584.3 Billion between November 5 and December 24, 2010...

Could this be taken as a sign that the end of the recession is near? Or are we just becoming a little more fed up with dealing with a recession - no longer willing to put up without some of the little luxuries in life?

In the past, American Consumerism has often led us out of recessions and dips within our economy - most especially around the holiday season. Logically, it makes sense - getting people to spend money puts the money into circulation; thus allowing businesses to hire more people (and pay higher wages to their employees). And what better way to get people spending than to have sales advertised and new merchandise set out just in time for one of the most commercial holidays of the year?

But is it enough? I dare say that good old fashioned American Consumerism is not enough to bail us out of this economic crisis that we are facing. Why? Because I don't believe it was the lack of American Consumerism that triggered this sudden recession. The overall decline in spending has been an effect of the recession, not a cause. And we, as the spending public, are just not strong enough to carry the country through without something else being done.

American consumers can't afford to be the shining light at the end of the tunnel because we’ve
suffered traumatic losses of incomes, creditworthiness, jobs, and homes on a much larger scale than sufferers of other recessions - recessions which had been caused by a lack of spending.

And it seems that as we raise our voices up in demand of the help we need, the same answer comes about... Tax rebates. Do these even help? According to Dr. Juliet Schor - even if these tax breaks had helped in the past, they won't be much help to us now:

If the government were to give another tax rebate, it would most likely
be saved, not spent. And if it were spent, a lot of that money would
flow right out of the country, because so much of consumer spending is
for imports. That’s especially true at the holiday season, when people
buy apparel, footwear, toys, games, household items, and other so-called
durable goods. A huge fraction of those items (in the 90% range for
some of the categories) are now manufactured abroad.

So, if the government can offer no viable solutions that will create jobs and help stabilize the economy, and the American Consumer is overspent and cannot afford to be the engine of economic growth... Who then can we count on to turn our economy around? Can we look forward to a year of growth and hope in 2011 ... Or are we facing the same old New Year?