In the News: Economics Professor Talks Holiday Spending

Ted Schmidt, Buffalo State College professor of economics and finance, was featured in a recent article and news segment by Spectrum News 1, discussing spending trends over the last few months.

Titled “Buffalo Economics Professor Explains Why Spending Decreased in December, Spiked in November,” the piece by Brianne Roesser looks at 2021 holiday spending trends. Consumer spending usually increases in December, in conjunction with the holiday shopping season; however, spending decreased by nearly 2 percent in December 2021, according to the U.S. Commerce Department.

“The drop is mainly from a large increase in October and November, and then people getting their shopping done early versus waiting until the last minute,” Schmidt said. 

COVID-19-related supply chain issues and labor shortages influenced how people shopped for the holidays, Schmidt said. People shopped early to avoid shipping delays and other issues in getting their purchases. Overall, however, spending was up in 2021 compared with 2020. 

“I think it was actually a pretty good year for people, compared historically,” he said. 

Schmidt also pointed out that things like the student loan forbearance and the child tax credit allowed people to spend more.