This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

White House Links Cyber Monday and Fiscal Cliff

NEW YORK ( TheStreet) -- As consumers gobble up Cyber Monday deals online at virtual retail destinations like Amazon (AMZN), eBay (EBAY) and JCPenney (JCP), the White House has used the day to warn of the impact the so-called fiscal cliff will have on retailers and consumers.

A 14-page document available on the White House's Web page details the supposed fallouts that consumers and retailers could suffer, including a 1.7 percentage point cut in real consumer spending in 2013, according to the president's Council of Economic Advisers. That cut could represent about $200 billion consumers would not be able to spend next year, the report said.

"If Congress does not act on the President's plan to extend tax cuts for the middle-class, it will be risking one of the key contributors to growth and jobs in our economy at the most important time of the year for retail stores," the report said.

Online retailers were off to a strong start in the 2012 holiday season as statistics released Sunday by the National Retail Federation noted that 247 million shoppers visited stores and Web sites over the Black Friday weekend, up from 226 million a year ago.

Shares of eBay were up more than 3%, and shares of Amazon were up about 0.5% on Monday as investors looked for promising signs that the online retail giants would continue to ride the wave of upbeat sales data reported over the Thanksgiving weekend.

Some of the language in the White House's document echoed the type of rhetoric that became central to the George W. Bush administration's sweeping tax cuts in the early 2000s -- spend to stimulate economic growth.

" When American families spend more on things like clothes, cars, furniture, and food, for example, this spending generates greater profit for businesses and increased demand that causes businesses to invest and hire more workers," the White House document said.

The office of House Speaker John Boehner, a Republican, was out with a post on Monday that said a majority of Americans were in favor of spending cuts over raising tax rates -- a move that is not unlike austerity measures that have gripped the eurozone for the past couple years. The Boehner post cited polling gathered by GOP research firm Winston Group.

Boehner has said that he would be willing to work with the president to find more revenue, but both neither side has outlined details of a working, joint plan.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,250.88 +94.03 0.55%
S&P 500 2,009.53 +7.96 0.40%
NASDAQ 4,589.1810 +26.9920 0.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs