Businesses, shoppers feel holiday crunch

With the holidays looming right around the corner, businesses are prepping for customers, but with economic conditions being so poor the busy season may be somewhat lackluster.

"This year will be worse than last year," said David Berri, associate professor of economics. "We are in a national recession."

Recessions occur when the national income declines, and more money is spent than earned, Berri said.

Although recessions typically last for only short periods of time, businesses will suffer from this rough economic period, he said.

"The holidays are big for retailers, so this is the wrong time to have this recession," Berri said. "Even Santa responds to recessions."

For Cedar City merchants like Sulinda Myers, from the flower and jewelry store Absolutely Perfect Gift, the economy has created some difficult times.

"It's bad, from June until now we have had less in sales than we did in one month a year ago." Myers said.

Myers said she thinks the economy's poor position is directly related to the store's lack of customers.

"With the economy in such bad shape, people want to spend their money on something that lasts a little longer than flowers," she said.

Although sales have been slow, Myers said she still has high expectations for the Christmas season.

"We usually start to pick up after Thanksgiving, so we're hoping that happens this year," Myers said.

For Myers the economy affects not only business, but her personal life as well.

"I will be doing a lot of homemade Christmas gifts this year," she said.

For students like Jessica Vickers, a sophomore management major from Cedar City, and Chelsea Teuscher, a sophomore finance major from Long Beach, Calif., the economy will have little effect on people's buying habits this year.

"I think people might have to cut back a little bit, but for the most part people are ready for this and have been saving for the holidays," Vickers said.

Vickers and Teuscher also agreed that even if people are not ready for the money crunch, they will still participate in the holiday rush.

"Everyone buys things on their credit card, and they are already in so much debt that they figure why not keep spending?" Teuscher said.

For both Teuscher and Vickers, the poor economic situation won't have a huge impact on them.

"It can't effect me, I won't let it," Teuscher said.

Bryan Allen, a senior marketing major from Panaca, Nevada, said the key to surviving the economic situation through the holidays is to just be smart.

"I see a lot of students spend so much," Allen said. "It's a horrible idea to just keep spending, because the more debt you have the more difficult it is to get out of it."