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Closing on Sunday…part of the solution for crushing consumer debt?

Photo by ebaycoach

When I moved to southern Germany in the late 90s, I was surprised to learn that most shops were closed by 4 PM on Saturday and all day on Sunday. Literally, the only place you could get anything to eat at home on Sunday, if you did not manage your shopping during the week, was at the local gas station. To be fair, many restaurants were open on Sunday, so it was not the end of the world if you missed your weekly shopping, just a little more expensive. Oh, and major commercial trucking is also not permitted in Germany on Sunday (I love this rule–no complaints from me on this one…ever)

I adapted pretty quickly to the new routine during my first year in Germany, but whenever I had a particularly rough week and was forced to do everything early on Sat., I would start complaining loudly to whoever was willing to listen. Then, I would fondly recall the beautiful convenience of the 24 hour, always on, “consumer is king” lifestyle in the US.

Fast forward a few years…
Over time, I started to fully appreciate the shopping silence on Sunday. I began to enjoy the fact that Sunday afternoons were reserved for reflection, church, hanging out with family or friends, going to museums, etc. Yes, I would still go on the occasional “free market is king” rant, but, in general, I enjoyed the silence.

Tradition
Germany has a long tradition of closing the doors on Sunday. According to Der Spiegel, In 1919, it became illegal to open up shops on Sunday and stores on workdays could only be open from 7 a.m. until 7 p.m. Saturday afternoons later became taboo. Nowadays, political wrangling about when stores can do business has become something of a tradition in Berlin. About once a year the government raises hopes among less traditional Germans that the late-night snack or roll of toilet paper may not be far away

Will the downturn change things?
As the recession drags on, there may be more pressure on Berlin to change as some economists posit that longer opening hours could help stimulate consumer spending and give the flagging economy a bit of a boost.

I actually hope Germany sticks to their no Sunday opening policy. One day without full blast consumption pressure is probably good for people judgmentally (no, I don’t have data to support this). I do hate the fact that something like this has to be legislated, but without forcing retail shop closure, competitive pressures seem to force everyone to operate around the clock. I am sure there are a couple of examples of major retail chains bucking the Sunday open “rule” in N. America, but I can’t recall any at the moment. Interestingly, according to a UK poll on keepsundayspecial.org 71% of people say that they would not be bothered very much or at all if all shops except local convenience stores were shut on Sundays. (Side cause note: You can donate to the Keep Sunday Special cause online)

Soak up some of that consumer debt now please…


Photo by yksin

US consumers are currently sitting on $2,540,000,000,000 in Debt. $2.54 Trillion seems like a huge sum. This would mean $8,467 for every person according to this post. Could shutting the doors on Sunday help nudge people in the US reduce some of their debt? Countries that have a no shopping on Sunday policy generally don’t have an issue with consumer debt…

Rob Walker notes more ideas on getting consumer debt down to manageable levels in his latest Consumed column. He writes: the Institute for American Values recently issued a report offering more suggestions on how to tone down consumption…like endorsing a public-education campaign; making the Thrift Savings Plan, which lets federal workers regularly sock a portion of their income into diversified investment funds, available to all working Americans; and even a revival of National Thrift Week

What do you all think? Is it time for a little forced shop closure for the US consumer? I think we have proven that we are not to be trusted with our credit cards & so, sadly, it may be time for adult supervision. I know free marketers won’t like this idea…I didn’t like it at first either. Feel free to comment!

Here is a related article about a woman named Samantha Weinberg who apparently eliminated her shopping for a year…

Here is another post on where the new frugality (since the downturn) may be leading.

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7 Comments

  1. Ryan
    Posted December 13, 2008 at 6:43 pm | Permalink

    Personally I think the German government legislating Sunday closings is just as wrong as the US government trying to constantly stimulate the US economy. You might find this odd, but I think the american consumerism mentality is not a product of free market thought. American local, state and federal politicians have invested billions of dollars to ensure that we citizens of the US buy things. A true free market does not allow any outside restriction OR stimulation. So I guess what I am saying is, I think “both sides of the argument” you are presenting are in reality the same thing.

  2. Posted December 14, 2008 at 3:07 am | Permalink

    I think this is an interesting idea and post, but I’m as against mandatory closing on Sunday for reasons of economics, religion, or anything else. To me it’s less about the free market and more about overall freedom.

    Since I’m working my rear end off during the week to support this economy, it means the weekend is the only time I can get things done, including shopping. Tomorrow is about my only window to take my daughters to shop for Christmas presents for my wife. I have managed to keep my finances under control, so why should I have to pay some penalty?

    There are also plenty of restaurants and other businesses that feel free to hold the hours they want, rather than feeling some pressure to be there 24/7. Take the Chick Fil-A chain in the U.S. for example, which chooses to close on Sundays because of the owners’ religious convictions. Good for them!

  3. Paritosh
    Posted December 14, 2008 at 11:49 am | Permalink

    Hi Ryan… I am one of those who keeps complaining about shops being closed on Sunday… While I am also in favour of some kind of moderation, shutting down the whole city is kind of tough…

    I often compare the situation with the traditional (old-city) businesses in Pune, my hometown in India… Where each area in the city shuts down on a day of the week…. So, Area A will be shut on Sunday, Area B on Monday…and so on. This ensured one day of rest for the shops, but not at the expense of the consumers’ convenience. This was actually necessitated by electricity shortages and so called ‘load shedding’… There is also a religious/cultural element, which made this possible… We do not have a single day of rest prescribed in any of our teachings…(being polytheist, every day is holy for some deity or the other). So, not everyone was required or desired to shut down shop on the same day simultaneously… Unfortunately, the new businesses, driven by increased competition and the newly-found consumer culture, keep shops open 7 days a week (though there are no 24×7 shops yet). To be fair, a poor country and people cannot be blamed for giving it all to make that extra rupee, if somebody is willing to spend it…

    I do not think this model can be applied in Germany or anywhere in Europe, but, in hindsight, I do think this traditional model was a good balance between moderation and convenience and I regret that it is disappearing in India…

  4. Posted December 14, 2008 at 1:27 pm | Permalink

    Bob, Ryan–great comments, thank you–I am really enjoying the discussion. Paritosh, very interesting idea from India! Thanks!

  5. Alice
    Posted December 14, 2008 at 6:12 pm | Permalink

    Well, this is an interesting one!! As brits have more personal debt that the Americans and see ’shopping’ as a past time, I never thought I’d say that I am a supporter of the Sunday closing.
    Yes it takes getting used to, yes you need to be organised but as long as there is a late night opening in the week it should be perfectly possible even for those working tough jobs. (dont forget online grocery shopping!)
    I love the fact that Sunday is chill out, family, sports or anything you like day. I always run, eat a big brunch and catch up on emails, facebook and tv I can’t watch in the week!
    InGeneva (with stricter Sunday opening hours than the Germanic parts of Switzerland) its normal to see families walking, running, rollerskating, boating and generally enjoying the outdoors and being together. It also allows a complete recharge without the guilt of ‘oh, I should be in the hardware store’ which I LOVE.
    On a more serious note, the UK has moved more to the US style 24/7 grocery stores and Sunday opening is standard, but everyone seems frazzled, constantly on the go and not particularly happy. Not to mention all the people who have to work… there is never a time when a group or friends or families can all go out or get together as someone is always working!!
    But if they need the money isn’t being able to work a good thing? I’m still out on this one, I still think time with family and a chance to not be in the shops is healthy.
    I do, however, think they should open before Christmas! Like in Zurich where the last 4 Sundays are open…

  6. Posted December 14, 2008 at 7:00 pm | Permalink

    I for one do not see anything wrong with telling a business when they have to close. We tell them in our province how to spend their money. We legislate a minimum wage, holiday pay, we even legislate holiday closures. So what would be the difference in telling a business when to close there doors? I Love your article on debt, and I agree that with stores closed it would be one less day that consumers wouldn’t be spending money they don’t have. But what about the environment? The big chains are planning on doing away with plastic bags in this province by April of next year, to save the planet. To save plastic bags from going into our landfills, and at the same time stores are open here seven days a week and up til Christmas ,stores will be open 24/7. I fail to comprehend how having lights on and encouraging more traffic on our roads is saving the environment. We have lost everything and what it means to have one day of rest. One day of peace and quiet. Time for change!

  7. Posted December 14, 2008 at 7:22 pm | Permalink

    Hey Ryan, as an ex-New Yorker who has spent the last 20 years in Germany, I personally love the regulation requiring major retailers to close on Sunday. It forces upon me a discipline that I never managed to force upon myself when I lived in New York. I remember so many Sunday evenings at my local Gristedes (a New York City supermarket chain), rushing to find stuff to fill the fridge, having put off my shopping the whole week-end until the 11th hour.
    While it can be a pain to get it all done on Saturday, I DO get it done, and appreciate the time on Sunday it opens up for things non-commercial and non-materialistic (like commenting on your blog!). While I reject dictating my needs and preferences on the general public, I think it’s fine if a society as whole feels it has certain values — i.e. at least one day out of the week with a respite from modern commercialism — that it wants to support through legislation. I appreciate this aspect of German culture, which is still less materialistic than American society, although the gap has narrowed, sadly, in the 20 years I have lived here. In the meantime I find the culture of “ca-ching” that seems to pervade so much of American daily life wearisome when I spend time in the States. (Even though I intend to indulge whole heartedly, if temporarily, when I head back to the New World next week to spend Christmas in New York.)
    Your suggestion of putting some limit on store hours as a way to force Americans to reduce their debt is an interesting one. As antithetical it may be to the American philosophy of a free-market economy, the long-term risks to the USA of so many citizens having apparently lost any realistic sense of personal fiscal responsibility may justify it.

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