Despite economic uncertainty, the National Retail Federation says holiday spending could reach a trillion dollars for the first time ever, this year.<\/p>\n
SACRAMENTO, Calif. \u2014 Despite economic uncertainty, the National Retail Federation<\/a> says holiday spending could reach a trillion dollars for the first time ever, this year.<\/p>\n This comes as tariffs are raising prices on many products.<\/p>\n \u201cPrices are up, almost across the board, thanks, in part– well, thanks in large part to tariffs,\u201d said UC Davis Professor of Economics Christopher Meissner.\u00a0<\/a>\u201cThat’s going to make things difficult. It’s going to make that basket of gifts and goods for the holidays that much more expensive.”<\/p>\n He says consumers are feeling the pinch.\u00a0<\/p>\n \u201cThe best estimates I’ve seen have prices about 6% above where they should have been without tariffs,\u201d Meissner said. \u201cA lot of people are stressed out about these high prices, and there’s a weak job market, too.”<\/p>\n But, he says, it\u2019s not all bad.<\/p>\n “One of the other brighter pieces of news is the Fed has lowered interest rates several times this fall, and they probably will keep doing so in the medium term,” he said.<\/p>\n ABC10 spoke with local business owner Peter Mu\u00f1oz. He owns pop-up coffee shop \u2018The Pour Over Coffee Co\u2019<\/a> and says\u2014business has been steady.<\/p>\n \u201cI think a lot of people prefer to support local,\u201d he said. \u201cThere\u2019s a lot of opportunity to support local business. They know that their money is being re-infused into the community, that there\u2019s a relationship built with local small businesses.\u201d<\/p>\n That was certainly true over at the Tahoe Makers Market on Saturday, at Tahoe Elementary School.<\/p>\n ABC10 spoke with shopper Lexi Crook, as she and her daughter looked for holiday gifts, \u201cinstead of just filing through all the stuff on Etsy and Amazon,\u201d she said.<\/p>\n She said she\u2019s turning to more in-person shopping at locally owned businesses this holiday season, amid economic uncertainty.<\/p>\n \u201cIt\u2019s making me more aware of where I want to spend my money, especially since things are becoming so much more expensive these days,\u201d Crook said. \u201cI would rather support local artists and vendors and people who are maybe just also trying, themselves, to get by\u2026Because that\u2019s the only way we\u2019re going to get through stuff, is by taking care of one another.\u201d<\/p>\n Professor Meissner says\u2014overall, beer prices are down quite a bit and the cost of wine hasn\u2019t grown as much as it could have. So at least that cup of holiday cheer won\u2019t break the bank.<\/p>\n He recently published a book entitled \u201cOne from the Many: The Global Economy Since 1850.\u201d That\u2019s available HERE<\/a>.<\/p>\n WATCH MORE ON ABC10 |\u00a0Ways to keep your holiday spending in check | Dollars & Sense<\/a><\/p>\n ABC10: Watch, Download, Read<\/p>\n