Thursday, March 8, 2007

US ECONOMY IN DECLINE, LIKE IT OR NOT

So, I hear yesterday that one of my favorite bands of all time, Nine Inch Nails, has a new CD coming out in April. I immediately think to myself "Awesome! I'll totally pick up that CD!"


Then it hits me: where can I pick up a CD these days?


Tower Records in Westwood closed years ago and the Blockbuster Music/Wherehouse closed years before that. The iconic, Sunset Strip landmark, Tower Records just recently closed for good leaving only West Hollywood's Virgin Megastore and Hollywood proper's Amoeba Music left as CD sources for Los Angeles.
Sure, I can go online to iTunes or a myriad of other online music sources, but I don't know who's DRM system will be the least bigbrothery and draconian. When I buy a CD, I can do anything I want with it.

Then another thing hits me. CD stores aren't the only stores I've seen close.

There have been a rash of KB toy stores in my area close. The one at the Westside Pavillion mall closed earlier this year and the one at the Santa Monica Place mall closed last year, as I recall. I also remember, late last year, hearing on the news that the Toys R Us Corporation was considering selling off their Toys R Us unit because it wasn't making them as much money as it used to.

Just the other day I was looking for a cheap thumb drive at my local CompUSA (the one in Culver City). Turns out they're closing down in the next couple of months. It also turns out that every CompUSA store south of Bakersfield is shutting down.

Now, Bush said something about our economy being strong, but it sure seems to me like it isn't. How else can you explain all of these retail stores closing?

It means that people just aren't buying music/videos, toys or electronics like they used to. Why is that? Because we can't afford them. Why is that? Because gas prices are up (again--thirty-cent jump in the past month according to CNN Radio) and the value of the US dollar isn't up. We have to pay our cable, cell, credit card bills and our jobs aren't paying us any better. Hell, I'm actually making less now than I have in the last ten years.

The rich white men can say whatever they want about how good the economy is but from the poor white man's point of view, my point of view, the economy is in serious decline.

6 comments:

  1. It would be nice and comfortable for things to stay the same - much more familiar. That isn't always the case.

    I agree with your facts, but you have skipped step or two in your logic. You assume that people aren't buying CDs, so the stores have closed. The fact is that people are buying even more music (except for rap) than ever before, both CDs and downloads. Did you have the same concerns when you couldn't go to the record shop and buy 45s? How about LPs / 8-tracks / cassettes? Mediums evolve - that's why you have an iPod now.

    I bought more CDs in the last year than ever before. Most were via the internet, but I also bought some from Wal-Mart and Target, two more indications of change.

    As for computer items, I have not bought anything computer related in a store in years - it's all been over the internet. The very nature of computing and the internet has lead to the evolution of shopping for computers and computer related items. CompUSA is closing some brick and mortar stores, but their internet business is stronger than ever.

    I like things to remain the same, but the won't. I don't like Wal-Mart, but even if I don't shop there, they are a large part of the driving force for the lower prices at all stores that make everything we buy more affordable. Just like Southwest Airlines has forced lower ticket prices whether or not you actually fly them.

    The "Economy" is good overall, but individuals' own personal "economies" may not be perfect for everyone. A large part of some people's problems with the economy has to do with their personal choices - which is fine. People choose to live in expensive areas, so their cost of living goes up, and they have to sacrifice elsewhere. People can also choose what profession they enter, and how much money they will earn, more or less. I have personally turned down a job opportunity that would have doubled my salary, but it involved relocating the Middle East and being separated from my family - my choice. Conversely, I could have much less stress at a lower paying job, but I choose to accept a moderate stress level to afford more for my family.

    Change and choices... I digressed, but they are related - sorta! But, it's late, and I'm tired, and I feel I've made the wrong choice in staying up this late!

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  2. I'm not against change, this isn't my point at all. I understand what you say, but I think you're missing something as well. This isn't just about Walmart and music stores. Parents aren't buying toys for their kids any more. So, the selection at Toys R Us is dwindling. It's even worse online. Why would parents stop buying toys for their kids? It can't possibly be that there's a wave of ill-behaved kids in the world.

    And don't forget--as sales move online and stores close, jobs are lost. Our economy is really only made up of millions of "personal economies". There are way more poor folks than rich ones. There are more poor folks every day. You say the economy is "good over all" but you cite no evidence. You were offered a job to make more money? Is that supposed to be proof that people do get raises? Sure--you're one person and you were offered a job in the Middle East--I don't think this is a very common thing, so I don't see how you can use yourself as an example. I don't believe the numbers that are presented in the news "unemployment is down!" that's not accurate since what they mean is "people getting unemployment benefits is down" which doesn't mean anything but what it sounds like. Fewer people are getting checks in the mail--that could mean they got a job, but it also good mean their bennies ran out.

    So, you parrot the mainstream story and I tell you something different. Who's right? The system or the individual? Since the system is designed to protect itself, I'm going to go with the individual, since I need the system to help protect me from going hungry.

    This isn't about my fear of change, it's my fear that the economy is changing for the worse and no one cares. Internet businesses require fewer people to run--so jobs are lost when they move from the real world to the virtual one. The Tower Records in Hollywood had (I'd estimate) about 30 people working there. I'm sure they'll find other gigs, but those positions are gone forever. They didn't move to the online world and when jobs cease to exist, the economy loses a tool for growth. Yet no one seems to mind that on a practical level people are spending less because they make less and have harder times finding work.

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  3. I beg to differ about the toys... I was just in one of my kids' rooms - there are easily double the number of toys in there than I ever had! Plus, I'm divorced, so that means they two houses full of toys - double my personal history. And I bought most Christmas stuff - I'd say 80-90% - over the internet. I haven't had so many cardboard boxes in my house since I moved in!

    A lot of the economy goes to the internet instead of brick and mortar because it costs less - you don't have to pay for the physical store or as many sales people, so that does result in fewer jobs for that company. However, the fact that you pay less for toys means that you either buy more toys, or you have more money left over for other things. And once those KB Toy stores close, something else moves in - the building doesn't stay empty for long. I see that all around town - there aren't empty store buildings and, in fact, there are more being built all the time.

    As for proving that the economy is good, if you won't believe the facts that are presented, then why should I bother presenting more facts? You will just dismiss them. You cited unemployment being down, but you don't believe any facts that don't support your hypothesis.

    Regarding personal economies, I have cited as many examples as you have. I received two raises last year, and am getting another raise next month. My personal economy is doing well (as long as I can keep my own personal spending in check!) I'm sorry that yours is not doing better - have you considered getting a new job to help your situation? I don't know that either one of us can convince the other with our own experiences... I have one friend who took a pay cut last year, but that was so she could get a better career path - it will pay more money in the long run. I also have only one friend who is unemployed, but he has enough family money that he is not hurting. But we tend to run in circles of like-minded people, so I'm sure that a large percentage of your friends would agree with your sentiments that the economy is in the toilet. Neither one of us has a group of friends who is truly representative of the entire country, so we can't get an accurate statistical sample. (although I do have friends who range from living off social security to millionaires)

    My own recommendation, and it is an approach that I take, is to take a two pronged approach to the problem, as you see it. Writing your essays here is one of those prongs. I disagree with your original hypothesis, but we can always disagree. The problem with this approach is that it is a little quixotic. It might be a little theraputic for you (and for me to counteract it!), but your one little voice won't change much.

    The other prong has to be to lift up yourself as much as you can at the same time. It's like that old corny saying, "when life gives you lemons..." Bitch about "The Economy" all you want, but you've got no one to blame about "the economy" but yourself.

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  4. Turns out you're both right:

    http://www.bloomberg.com/apps/news?pid=20601087&sid=aYGFL2fwC9i8&refer=home

    ...though 'Required' is in the minority.

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  5. I know I cannot help you, but that's fine, you don't want to be helped. People like us click on that link because you want us to - that's why you put the link there.

    If my friend "Required" has all these toys in his house, and the fact that his house is "full of toys tells [you] how rich [he is]," or "how little [he] spends on other things," which category do you fall in with all your toys? Are you rich too?

    I won't continue to respond point by point - you choose to dismiss facts that don't support your hypothesis, so why bother? But, you say "Required" sounds like your father - therefore you choose to dismiss him out of hand too, right? I'm sorry that you're so full of anger towards your father that you can't imagine that he might be right about some things.

    I hope you grow up at least a little bit some day. In the mean time, continue to stay pissed and play with your toys.

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  6. Oh yeah, whatever, man.

    You can keep ignoring my request that you post with an honest interest in a real debate instead of the "you're wrong, agree with me" style of debate that you seem to like so much (along with too many other people on the 'net and off). You keep assuming you know me based on my blog--I might as well assume that all Republicans like seeing Iraqi children killed by US bombs (which I don't assume). For instance, you try to judge me by asking me what category "you fall in with all of your toys". None. I don't have kids, don't own a car, don't drink, don't party, pay nearly 10 year old rent rates (read: cheap), and live a fairly spartan existence (in other words, I can afford to buy myself toys, parents/car owners/most people can't). But you wouldn't know that because I don't really blog about it that much. Thanks for assuming. Hopefully you'll stop now.

    What I mean when I ask for a reasonable argument/debate is that you come here with your OWN opinion--not just the party line. If you're just going to quote what the news is saying or what the Fed is saying, don't bother. I've already replied to that in the post. If you don't like it but have nothing new to bring to the table, save yourself the effort and time.

    Seriously, you MUST have something better to do than waste time trying to "help me" as you say. And while I don't think I need "help" in a subservient sense, I would love help in better understanding the world around me. I get very little insight into why the world works the way it does from the news, society, friends, family. In fact, I don't think any of them really understand the world, either. I understand the world just fine for my tastes, but I'd like to understand it better.

    Oh and I have no idea why you think I should reply to you when you say things like "I hope you grow up at least a little bit some day". Usually that kind of snobbery comes from people who are jealous of the person being childish. That said, I'll continue to be as childish or child-like as I damn well please. If you don't like it, GO AWAY.

    This really is the last time I'll reply to you TheObserver. That is, unless, you bring your OWN opinion to the table next time and not something you've parroted from the news...

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