The Do-It-Yourself Stimulus Package

That’s the headline from the Dorsey Wright blog, stating that “one of the great strengths of a capitalist, entrepreneurial economy is its ability to adapt. Although the politicos in Washington may have no idea how to restart the economy, it might not matter. As long as things are not completely in flux, businesses and consumers will figure out a way to move forward.” 

 From Newsweek comes evidence that conditions for a recovery are being put in place without any help from the government:

 This do-it-yourself stimulus has already started. Corporate America’s balance sheet has never looked better, and consumers are paying down debt and bolstering savings. The challenge is a reluctance to spend. To try to jump-start consumption, companies are enacting mini stimulus programs of their own. In years past, teen-oriented retailer American Eagle has given away free T shirts and movie tickets to potential shoppers as part of a back-to-school promotion. This year it’s offering a free smart phone to shoppers who try on a pair of jeans (and sign up for a plan). Chrysler just kicked off a round of promotions that includes zero-interest financing and an offer to cover the first two installment payments. With banks reluctant to lend to small businesses, warehouse giant Sam’s Club has started a program with an approved Small Business Administration lender, Superior Financial Group. Sam’s Club will essentially subsidize a chunk of the loan process to enable its members to borrow up to $25,000—with the hopes they’ll spend the proceeds in the retailer’s wide aisles.

Innovative retailers like American Eagle, Chrysler, and Wal-Mart will figure out ways to improve their sales. Other companies will too. There are always trends because there are always corporate winners and losers and often a recession strengthens the winners and makes them stand out relative to their competition. Not sure if these three will be winners, but they’re certainly being creative.

________________
For further information, visit our website or call us at 1-800-567-3115