Because the economics behind this holiday season reflect the reality of fundamental change you probably will not see them discussed too much within the mainstream news; it just doesn’t fit the recovery narrative.
However, you don’t have to be an economist to understand Christmas expenditures.  It’s generally accurate that if your family spent less, the entire nation probably spent less for the exact same reason.
The worse news yet to reflect in the macro roll-up centers around Gift Card use.   Gift cards are not accounted for as economic sales on the shopping ledger until they are redeemed.  That statistic is yet to be determined.
(Via CBS)  […]  Deep discounts and extended hours could not get Americans to spend as much as stores expected this holiday season, so now retailers are cutting prices even more.
“Retailers overshot the mark, in terms of apparel supply,” said retail analyst Craig Johnson. “So there’s an imbalance of supply and demand in apparel, leading to all the dramatic promotions you’re seeing today.”
Stores could not make up for storms which hit during two key shopping weekends — and the lackluster economy.
“People are not buying as much,” Johnson said. “Why are they not buying as much? Because their incomes are very soft.”
After-tax income grew an average of just 1.1 percent between 2007 and 2012, but this year, it’s up only 0.6 percent.  (continue reading)