THE CONSUMER CAROUSEL’S CRASS CORNUCOPIA

Mr. Fate explores the consumer mania of Black Friday and overall profligate spending of American’s during the holiday season and exposes the awkward paradox of the “FIRE movement,” but can he resist the seduction of becoming a seasonal spendthrift himself?

A BRIEF HISTORY OF BLACK FRIDAY

As the fall air starts to chill and Starbucks begins to trot out their, count them, five seasonal drinks, we can feel a gentle tingling in our souls that the holidays are imminent. There arise soft stirrings of warm expectation and treasured remembrances of wondrous times spent with friends and family sharing love, happiness and joy. More importantly, is the burning compulsion to get out there and save 20% on big 96” television.

You may be surprised to know that the shopping mayhem called Black Friday has been around far longer than one might imagine. Its earliest origins can be traced back to 1905 when Canadian retailer, Eaton’s, hosted the first Thanksgiving Day parade which served to bolster shopping the following day. In true American spirit, this idea was then co-opted and subsequently “bigified” by Macy’s in 1924 as, prior to this, retailers had an unwritten agreement that holiday sales ads would not be published until this time. By the 50’s many people were habitually calling in sick from work the day after Thanksgiving, thus making for a nice 4-day weekend. Since the stores were open, sales began to get huge. In 1966, the term “Black Friday” was first used in print by The American Philatelist, a stamp collector magazine that featured a story on it.

TOO MUCH OF A GOOD THING IS THE PERFECT AMOUNT FOR ME

Since then, the fugly juggernaut known as Black Friday continues to grow unabated as it lurches into each new year and with it unprecedented sales figures. Moreover, ol’ BF has now transmogrified herself into a 5-day event while birthing such unseemly offspring as “Cyber Monday.” According to this report, in 2018 over 89 million people made purchases during the period from Thanksgiving to the proceeding Monday, totaling about $17.8 billion dollars. Interestingly (though not surprisingly), purchases made online via a smartphone or computer represented a little over half of all sales and is expected to grow geometrically each year. The good news here is that the probability of getting a beat-down or concussed by your neighbor whilst tussling over some high-demand object have dropped precipitously.

THE TWISTED PARADOX OF THE “FIRE MOVEMENT”

Anyone who reads this blog is well aware that I am not big on owning a lot of stuff, consumerism in general, or TVs of any size; it’s just not my thing. I’d much rather be outside hiking, kayaking, fishing or reading, but that’s me. I’d certainly never personally advise anyone to stand in line for 20 minutes to purchase a $5 cup of coffee with whipped cream on top or stand in the frozen dark in front of an electronics store waiting to buy the newest version of a phone you already own that still works great. On a micro or individual level, I think that’s all a bit much. Nevertheless, I am a businessperson. More importantly, I happen to have large equity positions in places like Starbucks and Apple so, on a macro-level, I want people to do just that. If one is an investor in a total market fund like Vanguard’s VTSAX, thus a financial stake in every public company in the US, every sale made, helps, presumably, to increase one’s wealth.

This is the twisted paradox of the “FIRE movement” that generally goes unacknowledged, or at least unspoken. Amid the literally thousands and thousands of FIRE-oriented blogs, nearly all (including this one) promulgate the notion of saving and investing (in either the financial or real estate markets) while simultaneously lowering one’s expenses and general consumption. This is not an indictment, it simply is the most efficient way for most folks to achieve financial independence or to even simply exist in a better financial state.

However, it is general consumption and consumerism that drives the value of our investments. And, frankly, the more people spending, the better those investments do over time. So, the reality here is that I want my assets to increase in value and, for that, as a businessperson, I both applaud and am grateful to the 89 million people going nuts and buying $18 billion worth of crap over a 5-day period in 2018. Even better when those purchases are “stacked” in my favor such as when someone uses Google on an iPhone to get to Amazon to buy a Samsung TV as I have positions in all 4 of those companies. Anywho, the point here is that we FIRE-folk oft-times (okay frequently) have a tendency to lampoon or excoriate “Consumer Suckas” but, in fact, we need them. Perhaps not to the tune of $13.9 trillion in consumer debt, but make no mistake, need them we do.

ON BECOMING A BLACK FRIDAY BOZO

For the record, I have never, ever made a Black Friday consumer purchase. This year, however, things are different. I will pop my proverbial cherry and become an official Black Friday Bozo. Why? Well it turns out that as we begin to finally make our transition to the new Fate Estates, we need to purchase some items, specifically some cold-weather gear such as thermals, shoes made for walking in snow & ice, and a heavier down comforter as well as a few appliances like a stove & microwave for the new place. It just so happens, that all of these can be had at solid discounts over the 5-day “Black Friday” period, so there you have it. Since I consider hot food, not freezing or breaking my leg relatively necessary, these items fall into my non-discretionary category. However, I have actually chosen to go a step further and blow some coin on decidedly discretionary things…

After the spark of creativity and a rekindled passion in music again following the Rock N’ Roll Zero endeavor, I am spending a little scratch on home recording equipment, an acoustic guitar and some software to get my new music project off the ground. By the way, all of these discretionary purchases are all being funded by a few grand I made selling old rock t-shirts on eBay, so it’s a cash-neutral proposition. Despite my rationalizations and self-funding and whatnot, let’s be clear – I’m now officially one of the, likely, more than 89 million folks spending this holiday season. For those invested in the market – you’re welcome!

GIVING TUESDAY: WHAT IS THE ROI ON CREATIVITY?

For those who may have been in a perpetual consumer hangover or wigging about the balance of their credit card the day after Cyber Monday, in 2012 the United Nations Foundation officially created Giving Tuesday. #GivingTuesday is “a global generosity movement in response to the commercialization and consumerism of the post-Thanksgiving season.” In 2018, gifts for Giving Tuesday were an estimated $400 million and 2019 looks to be even bigger.

While we at FatesOnFire have always supported charitable giving via our side hustle that saves lives, this year we have chosen to actively participate in the “doing good” aspect of Giving Tuesday by investing in creativity. Specifically, we have committed to making a year-long investment in 3 artists/illustrators via Patreon. These folks have produced wonderful art for decades, but due to market conditions, now require external funding to continue. In addition, we are supporting another 2 board game publishing start-ups via a 1-time donation. These companies have passion, vision and aim to produce high-quality items while building community. As you can see, all of our discretionary spending this season is all focused on supporting creativity of various fashions. While, the financial ROI is non-existent, the ROI on joy and creative output is immeasurable.

AND SO…

And so, dear readers, Black Friday isn’t going away anytime soon, nor should it, IMHO. That big retail mama wants all and she will get all. While I applaud folks like REI who started the #OptOutside campaign and shutter their doors on Black Friday, it’s still a bit of a contrived retail stunt.

Next – “The FIRE Movement” really ought to consider easing up on making fun of “Consumer Suckas” and acknowledge that consumerism directly and positively impacts our investments and pays our bills. I am certainly happy to forego a sense of moral superiority for better financial returns.

In any event, I wish you and yours the best this Thanksgiving. Should you choose to participate in the madness of Black Friday, be sure to stop by a Starbucks for a breather and a peppermint mocha.