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THE DAILY ASTORIAN • FRIDAY, DECEMBER 23, 2016
Holiday splurging not an option
for many workers scraping by
By ANNE
D’INNOCENZIO
Associated Press
ELIZABETH, N.J. — At
the brightly lit mall, clothing
stores highlight holiday sweat-
ers and big signs tout the sales,
while Duquan Allen keeps his
expectations in check.
Allen, who works full-time
cleaning planes at Newark Air-
port, says his mother doesn’t
expect anything big, and he
usually gets a hooded sweat-
shirt. He plans to spend about
$150 on presents for his grand-
mother, mother and 21-year-
old sister.
“I’m good at budgeting,”
says Allen, who makes $10.10
an hour.
Heading into this hol-
iday season, with gas and
food costs down, unemploy-
ment at its lowest point since
2007 and clothing prices on
the decline, economists and
retail executives declared it a
great time to be a consumer.
But seven years into the recov-
ery, there’s a stubborn divide
that hourly workers see more
starkly during the holidays,
between themselves and bet-
ter-off consumers who have
benefited more as the economy
improved.
“I see people traveling. I
wish I could afford it,” said
Allen.
Earning more
Many workers are indeed
earning more. Average hourly
earnings have picked up 2.5
percent over the past year, and
major retailers have raised
wages as competition for
workers has increased.
Thanksgiving
weekend
featured crowds of shoppers
at stores and malls, snapping
up new TVs and clothing.
Luxury stores have promoted
“feel-good” gifts like $1,000
silk pajamas. Americans spent
$3.45 billion online on Cyber
Monday, according to Adobe
Digital Insights, and nearly
that much on Black Friday,
the day after Thanksgiving.
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Michael Goulding/The Orange County Register
A shopper at the Brea Mall in Brea, Calif., carries bags full
of packages. Amid the holiday decorations and cheerful
ads, splurging is not an option for many Americans strug-
gling to get by.
The National Retail Federa-
tion trade group expects hol-
iday sales for the November
and December period to rise
3.6 percent to $655.8 billion.
From the data, people seem
very able to buy. Overall, peo-
ple plan to spend about $935
per person this holiday season,
according to an NRF survey.
Behind that figure, though,
there’s a split.
Consumers with income
under $50,000 plan to spend
a little over $362 on gifts
for their family and friends,
while for those with income of
$50,000 and higher, that num-
ber is about $768. Throwing
in decorations, greeting cards,
flowers and food, the differ-
ence is even larger — around
$512, compared to about
$1,020. That divide also hasn’t
budged since the recession.
“The U.S. economy is not
creating high-wage jobs for
lower- and middle-income
consumers,” said Ken Per-
kins, president of research firm
Retail Metrics LLC. “This is
making it extremely difficult
for lower-income consumers
to make a living. There’s really
not a lot left for Santa Claus.”
Shrinking growth
About half of American
workers have seen their share
of overall income growth
shrink since 1980, according
to a recent study by economists
Thomas Piketty, Emmanuel
Saez and Gabriel Zucman.
In 1980, the top 1 percent of
adults earned on average 27
times more than the bottom 50
percent adults; now, they earn
81 times more.
Workers at Wal-Mart
Stores Inc., the nation’s larg-
est private employer, now
earn an average of $13.38 an
hour, while the average hourly
pay for cashiers and low-
level retail sales staff across
the industry is $9.26, accord-
ing to a Hay Group survey.
But some groups say hourly
employees across the board
still don’t make enough to live
on. Their fight will face hur-
dles with President-elect Don-
ald Trump’s pick for labor sec-
retary: fast-food CEO Andrew
Puzder, who has been critical
of minimum wage increases.
“It’s a scary-looking admin-
istration,” said Scott Courtney,
executive vice president of the
Service Employees Interna-
tional Union. But he said the
“Fight for $15” campaign that
began with retail and restau-
rant workers is not giving up.
“You are going to see a lot
more opposition and a lot more
people taking part.”
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Morisse Logging
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Putnam Pro Lube
Radio Shack Warrenton
Reed & Hertig
Rick Quashnick-F/V Maverick
Rod’s Auto & Marine Electric
Ron Williams
Robert Marten’s Excavation
Safe Harbor Animal Hospital
Sahara Pizza
Seaside Aquarium
Seaside Fatory Outlet
Shear Pleasures Salon & Spa
Seaside Muffler and Offroad
Skipanon Brand Seafoods
T. J. Auto Repair
Teevin & Fisher Quarry
Teevin Brothers Land & Timber
Trucke’s One Stop
Warrenton Auto Parts - NAPA
Warrenton Fiber
Warrenton Mini Mart
Wilcox & Flegel