Retailers Relieved About Avoidance of “Fiscal Cliff”

The agreement was approved by the Senate early this morning and could be considered by the House as soon as today.
By Patrick Burnson, Executive Editor
January 02, 2013 - SCMR Editorial

The National Retail Federation today welcomed an agreement reached between the White House and Congress on a plan to avoid the fiscal cliff. The agreement was approved by the Senate early this morning and could be considered by the House as soon as today.

“If our nation had been allowed to go over the fiscal cliff, the consequences would have been devastating for businesses and consumers alike,” NRF President and CEO Matthew Shay said. “With the economy still recovering, taking hundreds of billions of dollars out of consumers’ hands was a risk we could not afford to take. This agreement might not be seen as perfect by everyone, but it gives American consumers and businesses the certainty they need to put worries over this issue behind them and get on with the business of growing our economy and creating jobs. We urge Congress and the White House to move as quickly as possible to get it passed and signed into law.”

While avoiding the tax hikes and spending cuts that would have come without a deal is good news, Shay said the agreement is just a first step in addressing economic issues.

“The Administration and Congress did what was politically easy but will soon have to return to deal with issues that are economically critical if we are to sustain a growing and vibrant economy,” Shay said. “Congress and the White House still need to develop long-term plans dealing with tax reform and other fiscal issues. We have avoided the immediate crisis, but there’s much more to be done before our economy is fully restored.

The was not the only “cliff” that was avoided in recent days. As reported in SCMR, retailers were also cheered by news that the International Longshore Association would call off their strike before the new year. A happy 2013 after all? Stay tuned.

If tax hikes and spending cuts that make up the fiscal cliff had been allowed to go through, retails sales in 2013 would have been flat for the year, with negative growth in the first half of the year, according to an analysis conducted by NRF Chief Economist Jack Kleinhenz working with the economics firm Macroeconomic Advisors. A November White House report said consumer spending could have taken a hit of nearly $200 billion in 2013 if middle-class tax cuts were allowed to expire.



About the Author

image
Patrick Burnson
Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

FTR says both spot rates and contract rates are heading up in a full capacity environment and with the fall shipping season rapidly approaching, it explained conditions for shippers could further deteriorate.

Read how others are using Business Process Management to achieve ERP success with Microsoft Dynamics AX. Download the free white paper now.

Now that Congress has issued another highway funding Band-Aid – a $10.9 billion highway bill through next May that former Transportation Secretary Ray LaHood blasted as “totally inadequate” – what can we expect as the infamously do-nothing 113th Congress winds down in the next month before taking yet another recess to prep for the mid-term elections?

Seasonally-adjusted (SA) for-hire truck tonnage in July headed up 1.3 percent on the heels of a 0.8 percent increase in June. The ATA’s not seasonally-adjusted (NSA) index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment, was 133.3 in July, which outpaced June’s 132.3 by 0.8 percent, and was up 2.8 percent annually.

Volumes for the month of July at the Port of Long Beach (POLB) and the Port of Los Angeles (POLA) were mixed, according to data recently issued by the ports. Unlike May and June, which saw higher than usual seasonal volumes, due to the West Coast port labor situation, July was down as retailers had completed filling inventories for back-to-school shopping.

Article Topics

Blogs · Global · Procurement · Trade · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.