Tuesday, August 01, 2006

Big Boxes kill the rainforest of small business

  1. This is a continuation of the comment on Becker Posner blog on Chicago Big Box Ordinance requiring a minimum wage and benefits.

  2. Big Boxes create seemless networks that lead out of the US that American workers and business people are shut out of.

  3. Big boxes are irreversible change.

  4. Small retailers can never come back after a Big Box.

  5. The BB tend to get low cost goods from outside the US.

  6. Thus a chain is created from outside US into communities that can't be broken.

  7. It excludes all American business.

  8. It prevents organic change from within America.

  9. Its low cost and replaces what existed before.

  10. This can never be changed by economics alone.

  11. They are very effective in lowering their costs and keeping them below any others.

  12. The result is irreversible change.

  13. The change is to substitute out Americans at every stage of the supply chain.

  14. This can't be changed by gradual change by individual Americans.

  15. They become the network, and that network is designed to shut out American business and American workers.

  16. What are the people supposed to do after this network is set up whose goal is to permanently displace Americans out of business?

  17. The result is the millions of American men who have dropped out of the work force in their prime.

  18. The result is also that millions of small business are shut.

  19. Men who lose jobs, can't start small shops, because the Big Box networks that extend from China into the inner cities won't let them.

  20. Big Boxes create a special type of externality, the loss of network flexibility and economic flexibility. People are shut out. Its the same feeling as discrimination. You feel you can't do anything because the opportunities are closed.

  21. Big boxes destroy the rain forest of small business. That destroys business diversity.

  22. That includes minority business people. Those people are a rain forest to their communities of jobs, hope, and examples.

  23. When the rain forest of small business is destroyed, the result is to permanently reduce the diversity of the economy. This makes it less flexible. It makes the economy unable to meet or adapt to the needs of people.

  24. It destroys hope. Hope is real.

  25. Economists call hope expectations.

  26. When expectations are lowered, the result is a rational expectations equilibrium that is lower.
  27. Big boxes create a dashed hopes equilibrium. People drop out.

  28. This is what big boxes do. They result in a worse rational expectations equilibrium.

  29. Big boxes are irreversible subsitution out of Americans.

  30. Both as workers and as business people.

  31. Big boxes mean that competition by energetic people, many motivated by desperation, can't succeed.

  32. They are fighting a big box chain that stretches to sweat work shops in Asia.

  33. The people in America, workers or businessmen, can't get into this network. They are shutout.

  34. The result is substitution out of Americans, and irreversible decline.

  35. That is why millions of American men have dropped out of the work force in their prime.

  36. We need to turn from big boxes to recycling the people who have dropped out.

  37. Rainforests recycle.

  38. Small business rainforests recycle people.

  39. That cleans and strengthens communities organically from the inside.

  40. We need an organic America.

  41. America needs to be a rainforest of its people.

  42. We need An America that recycles the people in it, instead of discarding them for something new.



  43. This article represents opinion. All other disclaimers apply.

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