The ever most popular Black Friday, which is an annual discounted shopping day that takes place the day after Thanksgiving has been a busy shopping day for decades. Black Friday was at first used to describe the stock market collapse of 1869, when investors caused a financial meltdown. Around the 1940s came the modern concept of Black Friday to entice customers to their shops and the name was inspired by the traffic accidents this day brings. As the 80s came around, Black Friday became a substantial marketing tool and is now the most popular shopping day of the year.
Black Friday has a large impact on retail spending, consumers, the economy, and stock results. It is well-known that Black Friday influences consumers to spend money by allowing them to feel like they are saving tons of money. It is advertised as a rare opportunity to get amazing deals and bargains on products. Every year the retail sales volume increases as the percentage of spendings go up.
There is a debate on Black Friday’s impact on the economy. The amount of consumers spending on this day drives economic activity, which leads to the Keynesian effect. Furthermore, the stock market can be affected by having extra days off during the Holidays. Some say that Black Friday keeps the US from going into recession, while others say there are only short-term effects.
Sources:
https://www.dailyfx.com/forex/education/trading_tips/daily_trading_lesson/2019/11/13/black-friday-stock-market.html
https://www.thebalance.com/why-is-it-called-black-friday-3305712
https://www.investopedia.com/ask/answers/102714/how-stock-market-affected-thanksgiving-and-black-friday.asp
I learned a lot from this as I did not know what the origin of Black Friday was. I just assumed it started as an advertising scheme. Personally, I do not shop on Black Friday because I know that a lot of stores will pretend that everything is on sale, but really they just made the prices higher and marked them down so it looks like a sale.
ReplyDeleteThat was a really interesting origin for Black Friday. I hadn't really thought about where it came from before, but I had heard that lower than expected Black Friday sales could lower a company's stock which is a surprisingly profound effect for one day to have on a company's value.
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