Thursday, January 28, 2016

How Hard Ball Economics Works

And of course by "Works" I mean in the context of working for them. At least for the moment.

Let us review.

They first come in, undercut any competition to put them out of business, and then, as they are now the only, if not on a very short list of remaining stores, you not only have a large employer leave, you have little option for getting needed items. And if that weren't bad enough, there's the upshot of knowing that a big part of why they left is because your community couldn't afford to buy enough to make your store profitable to their satisfaction.

Gosh oh golly. I wonder why that could have been. Hmm... Maybe the cut rate wages that this now gone employer, as well as the other cut rates that might still be there taking advantage of same, was paying?

This, in microcosm, is exactly what our current economic operating system is doing to itself all across its fabric as global competition, an ever greater thirst for profit, and the consequent push to produce the better item for the least cost, works at cross purpose to its own existence. Continuing under the delusion that other markets somewhere will still keep buying, and that whatever social component that still remains in the mix will remain irrelevant, or sufficiently diverted to not be a further cost issue. If nothing else I guess they figure they'll be able to employ enough people in policing and the military to at least keep the robots serviced... At least until they are able to service themselves, and the planet is still stable enough for ongoing production and consumption of one sort or another.

If that's not a picture to chill your bones probably you're not wetware anymore.

Walmart Store Closures Sending Shockwaves Across Small Town America