If the Economy’s So Good, Why Are Retail Stores Closing?


we have a voicemail number. That number is
two one nine two, David p. Here’s a very specific question about retail stores. Why are retail
stores doing so poorly if the economy is supposedly doing so well? Hi David. I’ve got a question for you. You
may or may not know the answer. Um, I’m just wondering, you see economy’s doing so good
as we hear reported in the mainstream media and a lot of places, they all say unemployment
down, um, employment. Good. The economy’s growing, doing great. Um, why are some many
chains, doors of filing for bankruptcy and closing down in 2019 Google changed stores
closing 20, 19 and see what comes up. Kinda really mind boggling that the economy is doing
great. Everyone’s doing fine, but there’s bankers fees and stores closing. Yeah. Yeah. So listen, it’s a very good question, which
is retail has been such an important sector in the American economy for decades. How is
it that the economy you can supposedly be doing so well if so many retail stores are
closing? And the answer is that the economy is shifting away from retail. Um, now I don’t
want, so let me issued the two very specific disclaimers. One, you can still debate whether
the economy is or isn’t doing well and you can argue which indicators we should be looking
at. Um, but what cannot be denied is that the economy in and of itself has been moving
away from retail for a long time and that there is going to be at a certain point in
time, retail is simply not going to be as important a, um, uh, a a vertical and industry
to the economy as it once was. Now, it still is very important. And when
we look at the number of retail stores closing down due to competition from online marketplaces,
Amazon being one, but there are many, many others and a lot of these other um, uh, closings,
there is no doubt that this is a negative force on the economy. The question is, is
it outweighed by job creation elsewhere? And the question is, well, where exactly are we
talking about? But the move away from retail has been happening for a long time. You know,
it started, I used to work for circuit city when I was in high school and college and,
uh, when best buy came and, uh, paid everybody low hourly wages instead of commission, like
we were paid at circuit city. Uh, it was clear that it was, it was the, the direction of
retail, no more sort of better trained and more highly compensated people at circuit
city. The idea was people making what at the time
I think was eight bucks an hour, uh, to just clerk out computers and offer service plans
and whatnot. And that was the beginning of the end for circuit city, which ultimately
folded and a, this is just the way retail is going so we can evaluate how the economy
is doing. Uh, we can also understand that retail is just a, uh, not a dying sector,
but a sector that is being reformed and reshaped and, and far less prominent than it was once
was. We’ve got a great bonus show. We will talk about a whole bunch of different stuff,
including 42% of Americans being at risk of retiring broke. Get the bonus show, get the, uh, commercial
free audio and video screen by becoming a member or patron information about both on
our website, the David Pakman [email protected]

100 comments on “If the Economy’s So Good, Why Are Retail Stores Closing?

  1. The online share of shopping is just 13 percent. So 87 percent of shopping is done at stores. I think the stores are closing because people don’t want to buy stuff they don’t need. Even people with cash on hand aren’t spending as much as someone as the consumer experts expect. Interesting enough, Comic book stores are actually doing very well at the moment.

  2. Bernie Israel and Biden both would simply wreck our economy in terms of trade jobs banking tax neither of them even pay on time themselves.

  3. Gee atheist i duno why dont you tell us i do have a idea of what might be happening i read it in a book b4 heres a couple of perhaps check them out and tell me what you think Babylon’s worship of materialism is shown through her emphasis on riches, luxury and the material things of this world –

    "…her sins are piled up to heaven, and God has remembered her crimes. Give back to her as she has given…Give her as much torture and grief as the glory and luxury she gave herself." 18:5-7

    "…the merchants of the earth grew rich from her excessive luxuries." 18:3

    Babylon is a great consumer of material goods and when she falls the merchants mourn over their loss of revenue,

    "The merchants of the earth will weep and mourn over her because no one buys their cargoes any more– cargoes of gold, silver, precious stones and pearls; fine linen, purple, silk and scarlet cloth; every sort of citron wood, and articles of every kind made of ivory, costly wood, bronze, iron and marble; cargoes of cinnamon and spice, of incense, myrrh and frankincense, of wine and olive oil, of fine flour and wheat; cattle and sheep; horses and carriages; and bodies and souls of men."

    "They will say, ‘The fruit you longed for is gone from you. All your riches and splendor have vanished, never to be recovered.’ The merchants who sold these things and gained their wealth from her will stand far off, terrified at her torment. They will weep and mourn and cry out: ‘Woe! Woe, O great city, dressed in fine linen, purple and scarlet, and glittering with gold, precious stones and pearls! In one hour such great wealth has been brought to ruin!’" 18:11-17

    Babylon’s focus on materialism is clearly expressed when the merchants say, "The fruit you longed for is gone from you. All your riches have vanished…"

     

    Babylon’s greatness comes from her emphasis on trade, and from the riches she offers to the powerful few all over the world-

    "For all the nations have drunk the maddening wine of her adulteries. The kings of the earth committed adultery with her, and the merchants of the earth grew rich from her excessive luxuries." 18:3

    "When the kings of the earth who committed adultery with her and shared her luxury see the smoke of her burning, they will weep and mourn over her." 18:9

    "The merchants who sold these things and gained their wealth from her will stand far off, terrified at her torment." 18:15

    "Woe! Woe, O great city, where all who had ships on the sea became rich through her wealth! In one hour she has been brought to ruin!" 18:19

    "Your merchants were the world's great men.
             By your magic spell all the nations were led astray." 18:23

     

    The city of Babylon is a major port city, and is described as the greatest and richest city that the world has ever seen-

    "When the kings of the earth… see the smoke of her burning… they will stand far off and cry: 'Woe! Woe, O great city, O Babylon, city of power! In one hour your doom has come!" 18:9-10

    "Every sea captain, and all who travel by ship, the sailors, and all who earn their living from the sea, will stand far off. When they see the smoke of her burning, they will exclaim, ‘Was there ever a city like this great city?’" 18:17-18

    "The woman you saw is the great city that rules over the kings of the earth." 17:18 
    Kind of wierd i was the 317 commet just after 316 umm

  4. Payless closed because because they had $800 mil in debt, and a vulture capitalist bought it, and sold off the assets.

  5. Tariff have a boomerang effect. A 25% tariff on China means a 25% price increase on the products we buy. We are self destructing.

  6. Listen to Andrew Yang – jobs are going away and they are not coming back…..regardless of who's in The White House.

  7. What I think is world order. If he only makes the rich richer and the poor poorer trump and Putin can take over the world.

  8. Yes Online shopping is a HUGE part. But there is a really important point that should be made about Vulture Capitalism. Many people don’t know that Toys are Us was making a PROFIT till the day it died. The reason is because of loans that large companies can structure where they buy a company and the purchased company GETS ALL THE DEBT. Just by being bought Toys are Us overnight absorbed so much debt they couldn’t function. The new owners just declared bankruptcy and then made big cash off the deal.

  9. Honestly, I don't believe the economy is doing so great. The working class have seen diminished wages, and the middle class is seeing their wealth being transferred to the elite. People still buy things, because they can't really chose to starve, but money stacked in mattresses can only last for so long. The economy is in a death spiral.

  10. a m a z o n =)
    the cost of retail location is high unless you have the benefit of owning building.
    we all do it, punch and pinch at the local retailer then get it for less over the internet.

  11. Times are changing. I remember my friends and I going to the mall for something to do, and we would make a day of it. Now it seems be to chore. Also people changing their priorities on how they spend there money. Why pay top dollar when you can go to the following. Outlet malls, Marshals, T.J. Max, and the cheap discount stores. Lastly Amazon makes it easy for everyone to shop. One of the biggest things I like about Amazon are the reviews (they help a lot).

  12. Grocery shopping is next. Walmart and other grocery stores just to pickups now and have people shop for them

  13. Can unemployment keep going down until it is a negative number? By the same principle that Amazon made billions, and didn't pay any taxes, and got millions in tax credits! I think unemployment could be reported as minus 4%, and Americans would think that must be good!

  14. Every store in my town has signs up stating, "NOW HIRING". New home and renovation building has skyrocketed again. Tourism is back at new levels. Why, because of President Trump. Yet people like Packman keep trying to feed you lies. Oh you delusion-ed followers of this charlatan, wake up.

  15. Well, the corporate overlords that truly run this country their economy is doing great thanks to Trump fascist kakistocracy. The rest of us can be put into indentured servitude, as the new free range slaves of America.

    if you don't like Trump fascist kakistocracy oh, there's always debtor prisons for you.

    welcome to Trump's fascists kakistocracy in the Republicans War State corporate plutocracy

  16. Sure the economy is doing good after he kicked off more than half off of unemployment gutted Medicare Medicaid and social Security.

  17. If you don't count the poor and working-class, cuts to social Security Medicare and Medicaid, and FORCE kick half off of unemployment. Our economy is doing great.

  18. Hopefully the "reshaping" of retail means retail will still be a thing. If there's anything I've learned from videogames, its that the phasing out of physical copies and prominence of digital markets resulted in a degradation of product quality, and I can see that being the case with online shopping as well.

  19. more and more are buying online from amazon to big box stores like wallmart killing all the small retail shops

  20. People liked retail when the quality of service was high. Of quality of service and simple things improved retail could kill it, the experience is so much better than online which creates a ton more emotions the might lead to buying. Most places have given up, funneled money to executives and leave the customers bitching at the inept employees who would be happy to have more than 2 registers open on Saturday afternoon but leadership would rather impress some douchebag in a boardroom with how he saved 0.05% in employee payouts. Meanwhile your still standing in line bitching to the employee who 9/10 has a bad attitude because work is cutting into their game of thrones or Facebook time. There literally only 2 stores I enjoy going to but damn the experience is great.

  21. Retail isn't dying, it's being moved. Moved from brick-and-mortar stores to online retailers like Amazon. It's not good for a few reasons, one of which is Amazon pays very little and is operating more by machine than by manual labor. Good for bottom lines, bad for real economic growth as people who work get paid and then buy stuff. Money is like water, and the super-rich are damming that river to swim in it Scrooge McDuck style while the rest of us are getting fucked.

  22. If I spend any amount of time in line at a retail store, I'm very likely to put the product back on the shelf and jump on Amazon when I get home.

  23. It's not just "retail" it's restaurants and everything else. Trump and the corporatists are full of shit and if you believe them instead of your own eyes then you should eat some tide pods.

  24. It’s the ridiculous mark up stores have. Here’s an example. I was looking for a 3.5mm jack to lighting adapter/charger. Went Into both Best Buy and Walmart. They had the Bilken brand for $35-40 respectively. Jumped on my phone and found it on Amazon for $15 for the same Bilken brand. More than double the mark up and amazon is still obviously making a profit from it. So you know where I obviously got it from. And that’s why retail is going down

  25. So, in my neck of the woods, most people are living paycheck to paycheck – no raises, no real tax benefit, and stores closing all over the place – Sears just closed a store that had been open for 50 years – K-Mart closed 3 months ago and several restaurants and chains show closed signs on their doors. I'm not sure why this administration is touting the economy as the best it's ever been. I can honestly say, that I'm not any better off than I was 2 years ago – gas prices are at all time high again, lettuce is now costing $3.50 a head, celery is now $4. The tariff's placed on Mexico, are now starting to effect us, the consumer, with tomatoes being $3.00 a lb as well. The tariff's placed on China, will also start to effect us in the near future! Thanks, Mr. President – I'm so tired of winning!

  26. Why Are Retail Stores Closing? Way are not people traveling by horse and carriages anymore? Ever heard about the car or Amazon?

  27. One thing that I have not seen discussed is details about all of these new jobs that are being created. Are they full time? Are they paying a living wage? Do they include any benefits? All I seem to see is X jobs were created.

  28. It's only doing good for the one percent satan and his people will trick the mind of the weak he always make it look good

  29. walmart killed the mom and pop store. amazon is killing foot traffic. the problem is the economy is being run by very few people now. bezos and the waltons are insanely wealthy. bezos being the richest person in the world, and at one time 6 walton family members were in the to 10 richest americans. trump and republicans passed legislation giving them more tax breaks.

  30. Amazon is changing the worldwide retail industry…..soon Harrod's and Macy's may be gone…institutionalist stores. I like Amazon, but these retail stores are a bit too expensive.

  31. Automation. (1) Amazon – internet sales, with very few employees. (2) retail is the next target for automation – 30% of all malls projected to close in the next few years. The economy is NOT shifting AWAY from retail – people are still buying things – but the entire process involves fewer people. Also, new retail stores are now opening, but with very few if any employees. (3) Truck drivers are another target – self-driving trucks and cars and cabs and airport limos and local deliveries, etc., will decimate another segment of the labor force in the next few years (3-5 years). (4) automation has already sacked about 4 million manufacturing jobs in USA since year 2000 (and more worldwide), which is why Trump won in 2016. Globalization and immigration have nothing to do with it. (5) plus, with development of A.I., call centers will become computerized – computers that sound and talk just like people – and basic services (legal, medical, financial), will all become automated – again in the next 3-5 or so years). (6) fast food is another target – already robots are flipping burgers and making pizzas.
    Pakman is incorrect to state that "retail" as a sector is becoming smaller – the same amount of $$ continues to move – but the number of employees is shrinking. Only about 62% of the entire labor force in USA is now actively being tracked – all others have either given up or are homeless or collecting early retirement or disability or living in their parents' basements. And it's going to get worse.
    Projections indicate up to 47% permanent unemployment by mid-century or sooner. Solution? Universal Basic Income. The entire middle class will eventually be receiving its monthly paychecks directly from Uncle Sam. Elon Musk expects this to happen, also Zuckerberg and others. This is unavoidable, inevitable, necessary. Capitalism itself is driving this change, in its forever search for increased productivity and smaller overhead (i.e., robots – they don't get sick, don't take lunch breaks, never make mistakes, don't need retirement plans).

  32. do the jobs numbers include people working for gig economy companies like Uber and Lyft? bc those jobs are awful and aren't really 'jobs'.

  33. I would say amazon is putting everyone out shoot in 5 years Walmart gonna be out to if they can find a way to start building huge warehouse like Walmart I honestly could see amazon buying Walmart here soon it’s not gonna be long just wait

  34. Business Rates are what's killing the high street over here. Tories boast that they're keeping corporation tax down (a tax that charges a portion of profits, so as your profits scale down, so does corporation tax), while not mentioning what has to increase to make up for the loss of revenue, which is typically business rates, which is worked out from an appraisal of the value of the property, which doesn't care what you can afford.

    Probably what your Republicans are doing over where you're at.

  35. Stores are closing caus e90 percent of products we buy are Chinese go to a dollar store we all use them whatch what will happen things a43 going to get crazy expensive

  36. This is happening in many countries that you idolise. Old high Street shops are being replaced by online stores which face less tax and lower costs, as well as being more convenient. It's not rocket science and it's good for consumers.

  37. Awesome information, David. One thing a lot of people don't know that the income in the economy is very skewed. The media always provides averages, but in reality, they should provide median. So assume they are 100 people in a line based on income, wealth etc, what will the person in the middle make. That's a lot better way to assess an economy in a system where income is so heavily skewed.

  38. My city council hung posters to make abandoned store fronts look like open businesses. Pictures of inside grocery stores in windows. A fake movie theater, and book stores. It’s looks so stupid. I’m going to film it next time I go downtown. It reminds me of the movie The Interview. Where North Korea created fake grocery stores.

  39. Well there's the internet. Companies like Amazon and Walmart who offer a wide variety of items at much lower prices are a cheaper and more convenient alternative than retail stores that have to pay employees, lights, water and building rent. They also have to pay insurances as well as get licenses to sell certain items. With trump giving compaines like Amazon and Walmart tax cuts to where they dont have to pay any taxes it wont be too much longer before many small stores and even certain big retail stores are driven out of business and our unemployment rate will skyrocket under whatever president will come in next and trump will still claim to be a genius lol. All of these numbers he puts out are lies and they will remain "great" until hes out and we can get real numbers.

  40. The real economy is not doing well. We've allowed the elites to measure economic growth by the stock market. That is a measure of how much investors can bleed out of the economy. The combination of huge tax breaks, high returns on investment dollars and a large percent of low income jobs has created this false narrative. We are falling into debt levels that the country can not support. This government is bragging about how successful we all are yet at the same time they tells us that we can't afford education, health care, retirement or a living wage. Corporate greed will be the downfall of us all.

  41. If Retail is decreasing, what will drive the economy? Capitalism requires buying things, which is what retail does. Are you saying that we're going to be no longer buying things?

  42. The unemployment numbers depend on who you count. You can mow your neighbor's grass for 30 minutes a month and you count as employed. It is all BS

  43. Is this guy stupid ? Do you think Amazon , Walmart and online purchasing has ANYTHING TO DO WITH IT ? THIS GUY HAS HIS HEAD UP HIS ASS !

  44. the internet. since most buy off the web, the stores go to war on cost vs demand. the malls suffer the most

  45. What they call good is the prospect of war America is a joke what is good last I hear a trade war is going on

  46. Very simple. Corrupt money from China is laundering money in real estate, residential, commercial, and farm land. When u buy a house in China you buy he house. You don’t own the land. In North America they can launder their money to buy that house and that property.

  47. Don't forget about automation!!!! Jobs will be disappearing due to automation!!! This is very scary for hard working middle and all class folks!! Andrew Yang has been talking about this topic a lot and people need to wake up!!! My company is being sold to an automation company, it will be finalized on May 31st and we're all worried about our jobs, that's if we will even have one after that!!!! ☹️

  48. Because the demonrats and rinos sold us out to China and ran us with crony capitalism (walmart etc.) . a kind of democrat socialism . Obama really screwed around and almost had us ruined. Thank God Trump won and we can rebuild our country better then ever before .

  49. If you don't want retailers to close, stop using the Automated Pay registers at the retailers. Maybe you're in a hurry, maybe there's an old lady counting pennies or writing checks for $3 dollars, but if you want to keep those cashiers employed and the retailer open, don't use the automated ones. Actually, do Walmart or Target pay you to work for them?

  50. Every time you shop at Amazon to save $.42 you destroy retail outlets. The very people who work at a dying retail store shop at Amazon.

  51. Well let's face it. In the past when companies become monopolies then the once great government would exercise antitrust suits against them. Right now Amazon, google, apple etc. are so big and so powerful they are free to do what the want. They have no restrictions and like big oil they will or do own most of the republican congressmen. And just like big oil nothing will be done to stop these mega monsters until the corruption in congress is addressed.

  52. Highest ever wealth inequality. Highest ever consumer debt. Highest ever unemployed independent contractors. Highest number of Americans without savings. Reduced regulation of labor rights and stolen wages. Inflated markets at the same level of the Great Recession. Volatile markets under tariff wars. Floundering global confidence in American leadership. The warning signs are everywhere. Very likely on the verge of an avalanche.

  53. It seems there are number games on jobs. Once your unemployment runs out you just aren't counted as unemployed.
    We need change, I tire of the orange racoon saying things that are not true over & over. He can't handle a classified meeting and must get his intel from a few news sources his base watches. It is getting old.
    Trump doesn't get 2 extra hears, no one else does. America is now a laughing stock by all but a few Regimes. These are sad times and will grow even worse.

  54. Ben Shapiro would have definitely warped the facts and say something about the left being at fault instead of pointing out that retail stores are losing to online just as Blockbuster lost to Netflix.

  55. If you like this check out Andrew Yang. he gets it and knows the data. Also, he has a plan! He has many good interviews from many people. The Joe Rogan one seems to be pretty good. Andrew yang 2020

  56. Because marginal increases in online sales lead to marginal decreases in retail sales. And there’s always going to be turnover in retail no matter what.

  57. Private sector vs public sector it’s that simple , idc how many jobs you make if people can’t work them due to education level then it’s irrelevant. Without more public jobs this country is fucked

  58. Folks don't go to the store and pay cash anymore. Instead they make purchases online and pay with credit card. How's that working? Can anyone say massive consumer debt?

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