STORES Magazine - April 2009 - (Page 13) Consumer spending has always been highly dependent on an economy that consumers can trust. The problem is that consumer confidence is lagging, and cynicism appears to be growing at a rapid pace. The American Pulse Survey, conducted in late February by BIGresearch, finds that most consumers are highly skeptical of the recently passed stimulus package, concerned about whether the United States will ever again have a balanced budget and pessimistic about their chances of retiring. Nearly 5,000 adults were asked whether they believed that Congress read and understood all that was in the 1,100-page stimulus bill before they voted on it. Sixty-six percent said “no,” 21 percent said “don’t know” and 13 percent responded “yes.” Men feel more strongly than women that Congress voted without full understanding of the economic stimulus package; the same can be said for those with incomes greater than $50,000. Forty-seven percent of those polled think that members of Congress used the recently passed stimulus package to promote their own agendas. Roughly the same number of respondents (32 percent) think the stimulus package will do harm to the economy as think it will help in the long run. Given the recent government bailouts and stimulus spending, 56 percent of respondents say they do not think the United States will ever again have a balanced budget; only 18 percent believe a balanced budget is possible. When asked who the government is bailing out, a majority of the respondents said “Wall Street” (56 percent), and almost as many (53 percent) believe the government is bailing out “themselves.” Consumers are feeling pessimistic about the future, as well. Nearly half of those polled say there is no more than a 25 percent chance that they’ll be able to retire. One thing they do feel strongly about: 79 percent believe the government should force executives of companies receiving bailout funds to take significant pay cuts. Muzak Soothes the Savage Teen? “I write the songs that that make the whole world sing … I write the songs of love and special things I write the songs that drive rowdy teens from the mall I write the songs, I write the songs.” Those aren’t the correct lyrics . . . but they might as well be in the New Zealand city of Christchurch, where the city council, police and local property owners have determined that the easy-listening sounds of Barry Manilow might be just what’s needed to get a group of unruly teens moving — to an alternative venue. The mall has begun sprinkling Manilow’s smooth and gentle tunes like “Can’t Smile Without You” and “Mandy” into the mix of music piped into the central mall district in an effort to change the behavior of loitering teens, particularly several dozen young people WWW.STORES.ORG who “regularly spread rubbish, spray graffiti, get intoxicated, use drugs, swear and intimidate patrons at the outdoor mall.” One defiant 16-year-old told a U.K. newspaper reporter that Manilow’s music wouldn’t deter the group. “We would just bring a stereo and play our music louder,” she said. Here in the United States, there are judges who routinely sentence young people arrested for playing music too loudly in their cars to one hour of listening to easy-on-theears types of tunes. The mostly young adult offenders are typically treated to the musical stylings of artists like Dolly Parton, Carpenters and – yes, Barry Manilow. The punishment seems to be working, as the percentage of repeat offenders is reported to be very low. Generic Drugs Gaining There’s been a fair amount of speculation about the effects of the economic downturn on consumers’ health. While the stock market’s rollercoaster ride may be making some people nauseated, the recessionary climate is prompting Americans to curtail spending on prescription drugs. Consumers say they are spending an estimated 3 percent less on prescription drugs this year versus last, according to new research conducted by Kurt Salmon Associates and online market intelligence firm Prosper. ➔ STORES / APRIL 2009 13 http://WWW.STORES.ORG
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