Santa’s Reindeer: Not as Sprightly as They Used to Be

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After lugging a sleigh full of Wiis and Hannah Montana dolls across the sky, the reindeer are due for their annual checkup. Dasher, Dancer, Prancer and Vixen–otherwise known as Discover, Diners Club, PayPal and Visa–have been pulling increasingly huge loads in recent years, and this year was no exception. On Tuesday MasterCard Advisors reported that US holiday sales were up 3.6 percent from 2006. That our plastic reindeer carried such a heavy load through the blizzard of a mortgage crisis is a testament to the power of Rudolph and his nose of red. But is the Red-Nosed Reindeer running his team into the ground?

What’s clear is that consumer debt is taking a red nose dive. This week the AP reviewed financial data from the nation’s largest card issuers and found a steep rise in delinquencies among accounts more than 90 days in arrears. Some of the nation’s biggest lenders reported the accounts have ballooned more than 50 percent compared to a year ago. Overall, defaults jumped by 18 percent.

Rudolph (and Santa) really are to blame for a lot of this. For most of this year consumers seemed to be coming to their senses. The national savings rate was positive for most of 2007, for the first time in years, but then it jumped back to negative leading up to the holidays. For the time being we’re once more following Rudolph back to 1929. His flashing red nose is certainly comforting, but it’s also why people used to call him names, and wouldn’t let him play in any reindeer games.

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DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America will move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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