An article from the New York Times pointed out that one of the major reasons we see retail stores closing is because of a dying middle class.
Income Inequality: Rising income inequality has left less of the nation’s money in the hands of the middle class, and the traditional retail stores that cater to them have suffered. The Pew Research Center estimates that since 1970, the share of the nation’s income earned by families in the middle class has fallen from almost two-thirds to around 40 percent. Small wonder, then, that retailers aiming at the ends of the income distribution — high-income people and lower-income people — have accounted for virtually all the revenue growth in retail while stores aimed at the middle have barely grown at all, according to a report by Deloitte.
As the concentration of income at the top rises, overall retail suffers simply because high-income people save a much larger share of their money. The government reports spending for different income levels in the official Consumer Expenditure Survey. In the latest data, people in the top 10 percent of income saved almost a third of their income after taxes. People in the middle of the income distribution spent 100 percent of their income. So as the middle class has been squeezed and more has gone to the top, it has meant higher saving rates overall.
More than 9,000 retail stores closed in 2019:
Despite a strong consumer economy, physical retailers closed more than 9,000 stores in 2019 — more than the total in 2018, which surpassed the record of 2017. Already this year, retailers have announced more than 1,200 more intended closings, including 125 Macy’s stores.
This was a shock to me. The narrative that is always pushed regarding why retail stores are closing is because of online retailers.
However, this article pointed out that although online shopping certainly is contributing to the decline it doesn’t explain most of it.
This is just another example of how American society is changing. Big Corporations paired with globalists have changed our country into one the Middle-Class despises. They are creating a country in which they control almost everything. You work for them. You buy from them. You live in a society that they rule over.
It is time to take our country back. We want a country where parents can raise their kids and a country where parents have hope that their kids will do better than they do. A country that doesn’t serve markets but serves its citizens.
The Palmieri Report is a Pro-America News Outlet founded by Jacob Palmieri two years ago at the age of 19. Since its founding, it has gotten over 1M pages views and over 20k followers. The Palmieri Report is dedicated to debunking the lies spread by the left-wing Mainstream Media.
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