You might think this is a China or Japan Bashing post but think again. Where most of our jobs went is a internal problem and is the direct result of Merger and Acquisition that has been on steroids for the last 20 years. In short a regulatory and legislative failure. Oh… Congress has acted, but in a way that made this more and more possible with bigger and bigger companies.
To Big To Fail is a monster of deregulated proportions and the cause of job and tax loss for Americans and those tax losses must be made up by the taxpayers.
I will use my area as it is not so different than yours for prime example. My county’s population is around 140,000, down from 20% in this same 20 year span I will now describe. Please also understand this zip code was at least half previously small farms is now the main shopping area for 4 counties across 3 states now as the other areas have nothing that resembles full service anything with exception to a few large bank offices without local control.
20 years ago,
there were 9 full service grocery stores in my zip code. Each owned by an independent grocer and employing about 30 persons each, 20 full time and 10 part time (avg). Each store paying property taxes and each employee paying income tax (much less than today’s rate I might add).
there were 18 independent full service gas stations. Each employing an average of 4 persons.
there were 9 locally operated and controlled banks. 4 savings and loans and 2 credit unions. Each employing 8 – 16 people.
Now,
I have 1 independent full service grocer employing 10 full time and 8 part timers. 1 very large regional chain that has bought out all the existing independent grocery stores but has 2 locations and a Super Wal-Mart with a food store and I do not know how to calculate the employee’s as the meat is prepackaged somewhere else (to avoid union workers) and I never see more than 4 to 5 stocking shelves but I do understand they are open 24 hours and the sales clerks are shared with the dept store section of the same business.
I have 1 full service gas station (just opened and I hope he can make it) that employs 5 family members. 3 large company owned gas/convenient stores employing about 3 full time (management) and 12 part timers (kids).
I have 1 locally controlled independent bank. 0 Savings and loans and 1 credit union but 2 bank offices from one of the “to big to fail” 2 others that were not to big and failed. 2 regional banks with a office each but no local control of loans.
Now for every bank office and gas station or grocery store that is no longer there and those vacant store fronts are not adding anything to the property tax collection of my schools coffers so my rates go up and all the jobs lost from supporting services to made those businesses run and their employee/property tax loss…..
You can quickly see where this is going with only my 3 example industries but the real question is where does it end?
To Big To Fail My ASS, there is such a thing as “just to big” and size should support a local economy not rape it.
No merger or acquisition comes without job and tax loss just as if they went out of business because they did!