Later On

A blog written for those whose interests more or less match mine.

Why Walmart didn’t work

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In a comment in the NY Times, I give my take on the reason:

The problem with the Walmart model is that their model goes through fuel too fast—or, in another metaphor, you can shear a sheep many times, but skin it only once. Walmart was siphoning too much money too quickly out of the community, so (naturally enough) pretty soon there’s a great shortage of money: people don’t make much so they don’t buy much, so local merchants don’t make much and (a) don’t buy much and (b) lay people off, which exacerbates the problem: a vicious circle, the obvious solution to which is to take better care of the demand side: the basic infrastructure of our economic life became as neglected and decayed as as our physical infrastructure, and for much the same reason: refusal to invest in ourselves—or, rather, not having the money to invest in ourselves because it is so rapidly being siphoned off: see above.

Written by LeisureGuy

16 October 2016 at 4:07 pm

Posted in Business, Daily life

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