Shippers demand immediate action on economy stimulus
Patrick Burnson, Executive Editor -- Logistics Management, 1/22/2008
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WASHINGTON—Shippers convening at the 97th annual meeting of the National Retail Federation (NRF) in New York last week were demanding that the NRF’s Board of Directors do something government leaders here were failing to do: take action on the economy.
“U.S. retailers, who are a bellwether for our nation’s changing economic climate, are greatly concerned about the softening of the U.S. economy,” NRF President and CEO Tracy Mullin said. “2007 holiday sales were the weakest since 2002, and as the New Year begins, consumer spending remains sluggish. Consumer spending represents 70 percent of the U.S. economy and has fueled our economy for the past decade. We agree with economists who say the fastest way for a stimulus to enter the economy is through the consumer.”
The NRF Board unanimously adopted a resolution calling on Congress and the President to enact economic stimulus legislation as more than 18,500 retailers and vendors from around the globe met in New York City for NRF’s 97th Annual Convention. The Board said NRF expects the nation’s economy will be under continued financial stress in 2008 as a result of high energy costs, fallout from the housing slump, and sluggish employment and income growth.
In an interview with LM, spokesmen for NRF noted that this decision was “retailer driven.”
“Prior to the conference, we were not certain how bad the economy was starting to look,” said J. Craig Shearman in Washington. “But after the holiday sales figures were in, we saw that lawmakers must give us a shot in the arm.”
Based on recent developments, it appears that politicians listening, with President George W. Bush last week proposing a $150 billion economic stimulus package designed “to reinvigorate the ailing economy,” reported the Associated Press. This package would be comprised of tax cuts for businesses and rebates for individual taxpayers. These rebates, said the AP, would range from $800-$1,600 for individual taxpayers (for individuals and couples) and a bonus depreciation to allow companies to deduct 50 percent of business investments made this year, as well as supporting small businesses with more generous write-offs on equipment purchases.
And earlier today, the Federal Reserve cut its benchmark interest rate by three-quarters of a percentage point from 4.25 percent to 3.5 percent, according to The New York Times. The Times added that the Fed said this move was made “in view of a weakening of the economic outlook and increasing downside risks to growth.”
Additional reporting for this story was done by Senior Editor Jeff Berman
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