Churn Can Be Good, If That’s What It Is


If this is an indication of economic creative destruction, then it might be positive in the long run, but that might not be what’s going on:

The long feared “retail apocalypse” may be hitting with little or no fanfare if a growing list of store-closing plans by major chains is any indication.

Major U.S. retailers have announced the closing of more than 6,000 stores from coast to coast. The list includes only those retailers that have announced plans to close more than 10 outlets this year and next.

I fear that it’s actually an indication that the supposed economic recovery has really been a masterwork of smoke and mirrors.  Government policy nationally (and more so in Rhode Island) is not letting the economy really heal.

  • D. S. Crockett

    Aided and abetted by the MSM to protect the current occupant of the White House, a left-wing lune. God help us.

  • ShannonEntropy

    I would ask Mr Crockett to try to remember NAFTA. That was the Free Trade Agreement that turned the USA from the world’s greatest manufacturing power·house into a “service economy” where you can’t get any business to answer the phone anymore

    NAFTA was proposed by Ronald Reagan … and then ratified by GHW Bush … and then finally signed into law by Bill Clinton …

    Now the chickens have come home to roost … and spreading the blame for the resulting economic catastrophe is like spreading manure while trying to figure out which cow produced each shovel-full

    • Mike678

      Too simplistic. Do you think the US could have put up protectionist walls and maintained manufacturing jobs in the US when foreign labor could produce the same or better at lower cost? Did not these lower cost goods–Walmart–raise the standard of living for millions?

      Globalization is leveling the playing field. We will slip lower as some rise. If we want to stay on top, we need to work harder, maintain educational excellence–in other words, earn it. Sadly, it appears that many would rather borrow to maintain our current standard of living/illusion that all is well and slip into obscurity.

      • Warrington Faust

        ” Do you think the US could have put up protectionist walls”

        Not simply that. But we could have begun a switch to “robotic” assembly. The auto unions in particular fought that tooth and nail. I am sure there are other measures which could have been taken. Is “Made in USA” still the mark of quality?

  • ShannonEntropy

    Talk about “simplistic” !!

    If we want to stay on top, we need to work harder …

    In one in five households, *nobody* works; there are 60 million more welfare recipients than workers providing the benefits; and fewer than six out of ten Americans of ‘working age’ are actually in the work force; and much much more …

    … [&] maintain educational excellence

    A high school diploma is just an attendance certificate; and college education has been so dumbed-down and grade-inflated that the honor roll and the student roster are basically the same list … rendering a college degree worthless

    So I guess what you are implying is … we are doomed … right ??

    • Warrington Faust

      “In one in five households, *nobody* works;”

      In one in five “working” households, the paycheck comes from the government.

    • Mike678

      Understood. So what?

  • ShannonEntropy

    … the Free Trade Agreement that turned the USA … into a “service economy” where you can’t get any business to answer the phone anymore

    • Warrington Faust

      As one of my professors once said “A service economy simply means that we are shining each other’s shoes”.

  • Warrington Faust

    Is it possible that we are simply seeing one of the side effects of the demise of “brick and mortar” stores? My local Borders is gone, except for the “society”, I don’t miss it. Amazon has offered a better selection for years. Much of Amazon books is an assembly point for small dealers. Do those “dealers” even have stores?