Like many others in retail, J.C. Penney CEO Mike Ullman has seen his chain struggle as the economic situation in the U.S. has deteriorated over the course of the year. Last week, Mr. Ullman told analysts he believed it should be "job one" for the Obama administration "to get the consumer back in the game" and spending again.
According to a Financial Times report, Mr. Ullman said that a lack of consumer confidence was the most serious threat facing the U.S. economy and needed to be addressed swiftly.
"We know that the Federal Reserve has been very, very active in reacting to...financial pressures, and there's been less focus on the consumer up until the last 90 days," he said.
"It [consumer spending] is 70 percent of the economy. People with money are not spending as freely as they otherwise would, because they are concerned about the lack of visibility to '09 and beyond."
The Financial Times correctly pointed out that the National Retail Federation has been calling for a second stimulus package to spur consumer spending.
Discussion Questions: Do you agree that a lack of consumer confidence is the most serious threat facing the U.S. economy? Is a stimulus package focused on consumer spending the right approach to deal with the confidence issue and get the economy moving in the right direction again?