Should the Government Step In?

Yesterday the National Retail Federation’s board of directors asked Congress and President Bush to launch legislation to put forth an economic stimulus package in an effort to fight a slowdown in consumer spending.Holiday sales increased 3%, according to the US Department of Commerce, lower than the 4% that the NRF had forecast. Said Tracy Mullin, the NRF’s president and CEO: “Consumer spending and retail sales are the backbone of the nation’s economy. Stimulus that helps consumer spending will benefit all industries in the private sector.” Macroeconomic conditions, like the housing slump, high energy prices and a weakening employment are to blame for the downturn, the NRF says. The organization did not give any suggestions as to what type of package Washington should put together, except to say that it should act quickly and in a bipartisan manner.Should the government get involved in providing economic stimulus, or is it the responsibility of retailers to adapt and weather these conditions on their own?