Online Shopping and It's affects on the Economy:
Many people argue that online shopping is hurting the economy, but from my research I can say that online commerce is boosting the economy during this economic downturn. Online retail sales are set to rise 17% this year to 204 billion dollars (Watershed Publishing, 2010, Paragraph 1). Many people are shopping online, “National experts say that this year’s Cyber Monday, up to 106 million people are expected to log on and shop…” (Vespa, 2010, paragraph 7). As seen in the picture to the left. Many consumers shop on Cyber Monday, because of the great deals.This past Cyber Monday, the Monday after thanksgiving, online sales rose 22 percent to 1.25 billion dollars (Associated Press, 2011, Paragraph 1).
The only deterrent for our economy might be the act of taxation of the products sold online, because the government can only add a sales tax if there is a physical store location within the state borders. Our government has just recently enacted legislation that would create a tax code to address online shopping taxation.
People are saying that online shopping is not helping the economy because people shopping online is resulting in the decrease of employment. This is not a true statement. People will always still go to a physical location and shop. There will never be a shortage of consumers going to the malls. If anything, online shopping is boosting the economy by creating a more convenient way for consumers to buy the product.
The only deterrent for our economy might be the act of taxation of the products sold online, because the government can only add a sales tax if there is a physical store location within the state borders. Our government has just recently enacted legislation that would create a tax code to address online shopping taxation.
People are saying that online shopping is not helping the economy because people shopping online is resulting in the decrease of employment. This is not a true statement. People will always still go to a physical location and shop. There will never be a shortage of consumers going to the malls. If anything, online shopping is boosting the economy by creating a more convenient way for consumers to buy the product.