Sunday, March 12, 2017

How Globalization put out of business most small box stores in the U.S. over the years

Just because now big box stores like Radio Shack and Penny's and Sears and others are going out of business one by like like Circuit City and Borders did too, don't think that smaller businesses across the U.S. weren't affected too.

The movement that has now become companies like Amazon started innocently enough as businesses like Wal-Mart years ago now.

At first what happened is all or most of the boutique businesses and Mom and Pop businesses would be put out of business completely of one Wal-Mart moving into town. So, previously happy Mom and Pop Store owners either then went bankrupt or first went bankrupt as businesses and found themselves either retired or losing their homes, or going to work for Wal-Mart at minimum wage.

So, companies like Wal-Mart by selling cheaper made Chinese mostly goods put out of business 75% of store owners within 10 to 20 miles of anywhere a Wal-Mart opened. This is the beginning from my way of thinking where Globalization began.

Now it has moved to another level entirely which is online companies like Amazon taking so much business away from Big Box stores that they close one by one across America. This is likely to continue. And the way this works is Americans making products lose their jobs who make the products that all these boutique stores once carried all across America.

So, in this sense Globalization has GUTTED many parts of the U.S. since the 1980s when buying much cheaper foreign goods really began in the U.S.

If you are a manufacturer of anything here in the U.S. you cannot keep your prices down unless enough people are buying your products. So, in order to stay in business and to keep selling to these boutique businesses across the U.S. these American manufacturers had to keep raising their prices as Wal-Marts and other big box stores moved in selling foreign made goods until those manufacturers either moved overseas or went out of business.

Now, a third thing is happening because of robotics here in the U.S. Now many manufacturers can by a robot to work for them assembling things and shipping things that works 24 hours a day and lasts about 3 years without major repairs being needed. And you can now buy something like this that is reprogammable for multiple duties now for around $3000 to $5000  that lasts 2 to 3 years ongoing without major repairs while working 24 hours a day 7 days a week if you want.

However, now bigger stores like Radio Shack and Sears which has been in business over 100 years are now going out of business too. So, the globalization effect is ongoing and continues to tkake away not only businesses owned by Ameircans but also their jobs that they need to live to make a living.

So, you can see just how insidious all this is where a few people get rich but the majority get nothing. One could make the argument that people are buying things that cost less.

But, what good is that if you don't have a job or to own a business to buy any of these things in the first place?

This is the real predicament here in the U.S. now and I don't think Trump is actually going to fix the problem of business ownership or lack thereof in the U.S.

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