The National Retail Federation (NRF) has called on Congress to hold a lame duck session following the November elections so that it can draft and pass a new economic stimulus package.
"The United States is in the midst of a national crisis," said Tracy Mullin, president and chief executive officer of the NRF. "Extraordinary measures are needed to address this profound economic emergency that has affected every American."
Ms. Mullin said, "There is hard evidence that the first round of economic stimulus checks were used for good purposes: to pay down debt, to help fund ordinary household expenses, and to purchase necessities. But we believe a second round of economic stimulus is needed and must include relief for the consumer. Increased consumer spending would create demand throughout all sectors of the nation's economy, from manufacturing to transportation to construction.”?
House Speaker Nancy Pelosi (D-Calif.) recently suggested that Congress should consider a special session to consider a new economic stimulus plan.
The NRF's call for an economic stimulus comes on the heels of a report by the association predicting retail sales this year will grow at the slowest rate since 2002. The association is expecting holiday sales to increase by 1.9 percent this year.
Discussion Questions: Is a new stimulus package what retailers need at this moment? Will businesses, in the long haul, be better served with more Congressional action or by leaving the situation to market forces? What lessons do you think retailers need to learn from the economic challenges faced in recent times?