The School Years Impact on the Economy
Parents are year round money machines. From the time they find out they’re pregnant, til the time they die they will always be spending money. Majority of the money spent is spent from birth till the age of 18. Parents are constantly spending money which helps the economy. In winter they need to buy the clothes and supplies needed for warmth. In Spring and Summer kids need cooler clothes. Lastly, fall, is back to school time.
During the first couple months of school the economy is greatly impacted. In 2016 alone $75.8 Billion was spent on school supplies. This total is broken down into four groups: apparel, electronics, shoes and school supplies. Now most people would think that schools supplies would have the highest amount but this isn’t true, clothing has the highest. In 2016, $9.54 Billion was spent on clothing, in an average household parents spend $235.39 on clothes for their children. The next highest group is electronics total is $8.27 Billion, parents spend around $204.05 on electronics. The third highest group is shoes, total spent is $5.12 Billion and parents spend around $126.35. Lastly, and somewhat shocking is school supplies, total $4.37 Billion is spent and parents spend around $107.36. This is somewhat shocking but also makes sense.
Clothes, shoes and electronics all cost lots of money but lots of people buy school supplies and lots of them. While at the store I’ve seen families with carts filled to the top with school supplies. On the other hand this does make sense because when the school year comes around prices do go down and more sales are offered. When school shopping there is a substitution effect. Parents know they have to spend a lot of money on each of the groups so when it comes to certain supplies parents buy the cheaper item rather than the more expensive ones. Many people like to go shopping as soon as their children get their supply lists because there comes a time when there is a scarcity for many goods. There is a high demand for the same item so people want to get their supplies quick. If people wait too long there will be a shortage of goods re so people are forced to buy more expensive items because the cheaper ones are gone. Walmart, Target and Amazon are most impacted by the transition into the school year. More workers are needed because the stores are so chaotic which also impacts the economy because these companies have to pay their workers. Workers are need on all ends: manufacturing, shipping, in store- stocking, and customer services.
The last couple years there's been lots of budget cuts for schools. This is supposed to help the economy. When this occurs many people are laid off because schools don’t have enough money to pay for all the teachers. Classroom sizes become larger and the supplies supplied by the school are often use and supplies become scarce. WHen this happens parents have to go to the store and buy more supplies for their kids. This occurs a lot, many people have to go back and get more supplies midway through the year because things are lost or ran out of. The school year greatly impacts the economy and the people in the United States.
White, Martha C. "Back-to-School Costs Soar, Burdening the Poor." NBCNews.com. NBCUniversal News Group, 10 Aug. 2014. Web. 30 May 2017.
Kline, Daniel B. "Back-to-School Shopping Growth Suggests Improved Economy." The Motley Fool. The Motley Fool, 01 Jan. 1970. Web. 30 May 2017.