Can’t we Just Deliver Pizza’s to One another to Bring this Country Back?
if that Won't Work: Can’t we just Shove a Shovel of Lobster and All you can eat Shrimp in our Faces to Distract us from these problems?
America in Decline: The Erosion of an Industrial Powerhouse
Op-Ed by Mario Curletta
Over the past 50 years, the United States has experienced a significant shift in its economic landscape, particularly in the once-thriving Rust Belt. This transformation, driven by various factors, has led to a decline in American manufacturing and a reshaping of our economic priorities. Let's examine the key elements contributing to this change.
Labor Arbitrage and Outsourcing
One of the primary drivers of manufacturing decline has been labor arbitrage. According to economist Jeffrey Goldsmith, the labor cost differential is so substantial that multiple workers in Asia can be employed for the cost of one American worker. This disparity has led many corporations to shift production overseas, resulting in job losses and economic hardship for many American communities.
Corporate Deregulation
U.S. corporations have increasingly sought environments with fewer regulations. This pursuit has manifested in several ways:
1. Relocating to countries with lax environmental standards
2. Moving operations to areas with minimal worker protection laws
3. Seeking jurisdictions with lower corporate tax rates
4. Favoring regions where union formation is difficult or restricted
5. Choosing locations with fewer consumer protection regulations
These choices often prioritize short-term profits over long-term societal benefits and worker welfare.
The Strong Dollar's Impact
The consistently strong U.S. dollar has made American-made goods more expensive on the global market. This has decreased the competitiveness of U.S. manufacturing, further encouraging companies to seek cheaper production alternatives abroad.
The Decline of Traditional Industries
Once-booming industrial centers have seen dramatic declines:
- Pittsburgh's steel industry has largely disappeared
- Detroit's automotive sector has significantly contracted
- Akron's tire manufacturing has dwindled
- Appalachian coal mining has sharply decreased
- Southern textile industries have largely relocated overseas
These changes have left many communities struggling to find new economic foundations.
The Rise of Silicon Valley
While tech hubs like Silicon Valley have emerged as new centers of innovation, they haven't fully replaced the lost manufacturing jobs. Many tech-sector jobs, particularly in app development and streaming services, don't create the same broad-based employment opportunities as traditional manufacturing. Additionally, the focus on entertainment and convenience apps may be contributing to decreased productivity and increased screen time.
Education Spending vs. Outcomes
Despite having one of the highest per-student spending rates in the world, U.S. educational outcomes in critical areas like math, science, and reading comprehension lag behind many other developed nations. This disconnect between investment and results raises questions about the efficiency and effectiveness of our educational system.
Corporate Decision-Making and Accountability
Major corporate decisions, such as plant closures, are often made by executives far removed from the affected communities. The recent John Deere plant closures exemplify how these choices can devastate local economies with little direct accountability to the impacted workers and residents.
The Microbrewery Phenomenon and Its Limits
The rise of microbreweries across the country initially seemed to offer a new model of local, small-scale manufacturing. However, recent closures, such as those seen in Denver's suburbs, indicate that even this sector may have reached its saturation point.
Can’t we Just Deliver Pizza’s to One another to Bring this Country Back?
um, No is the shortest answer to this question.
The transformation of the American economy over the past half-century reflects a complex interplay of global economic forces, corporate priorities, and policy decisions. While some sectors have grown, the loss of traditional manufacturing has left a void in many communities that new industries have yet to fill adequately. As we move forward, it's crucial to consider how we can balance innovation and global competitiveness with the need for stable, well-paying jobs and strong local economies. The challenge lies in finding a sustainable economic model that can provide opportunities for all Americans while maintaining our position in the global marketplace.
Persistent inflation is straining consumers and retailers.
Consumer debt has surged to over $5 trillion, with credit card balances at record highs.
High interest rates compound this issue.
Corporations face similar challenges, refinancing low-interest loans at higher rates. Rising producer prices, a leading inflation indicator, further pressure retailers.
While holiday retail sales increased by 3.8%, this figure is inflated by price increases, not necessarily reflecting higher purchase volumes.
The complex interplay between inflation, debt, and sales figures paints a challenging economic picture.
Thousands of Retail Stores Set to Close in 2025
Mike Maharrey of MoneyMetals reports:
below short list of companies that plan to shutter locations in the coming year.
Macy’s – The department store is expected to shut down 65 locations by the end of 2024 as part of a plan to close 150 “unproductive” stores by the end of 2026.
Walgreens – The drugstore chain announced plans to close 1,200 stores, with about 500 locations shuttering in 2025.
CVS – Here, we have another big drugstore chain shutting down hundreds of stores.
Starbucks – The coffee giant hasn’t announced numbers but says it will close several stores next year to “optimize operations.” The company has been dealing with labor unrest, leading to barista strikes in several cities.
Party City - The company has filed for bankruptcy and is closing all of its locations after 40 years in business. Company officials say inflation, debt, and other factors led to its demise.
Foot Locker – The shoe store began closing low-performing locations last year. It plans to shut down 400 stores, primarily in shopping malls, by 2026.
Advanced Auto Parts – The auto parts retailer plans to close more than 700 locations by the middle of next year. The company is in trouble and plans to introduce a three-year financial plan to revive its business.
Big Lots – The discounter started by announcing the closure of hundreds of underperforming locations, but that wasn’t enough. After a purchase agreement with Nexus Capital Management fell apart, the company announced plans to go out of business.
American Freight – The discount furniture and mattress company filed for bankruptcy and will close all its locations. The company's demise reflects the declining spending power of lower-income consumers.
Family Dollar – Another discounter struggling along with the customer demographic, the chain is hoping that closing 1,000 locations will streamline its operation and boost sales.
Buybuy Baby – This retailer plans to close all of its physical locations, shifting to an online-only model.
Denny’s – The restaurant chain plans to shutter 150 of its lowest-performing locations, hoping to turn around sagging sales.
Wendy’s – The fast food chain is closing 140 underperforming restaurants.
Can’t we just Shove a Shovel of Lobster and All you can eat Shrimp in our Faces to Distract us from these problems?
um, Yes is the shortest answer to this question
Red Lobster is no longer in bankruptcy. The seafood restaurant chain has successfully emerged from Chapter 11 bankruptcy protection, marking a significant turnaround for the company.
Red Lobster initially filed for Chapter 11 bankruptcy on May 19, 2024, citing significant debt, declining customer traffic, and financial struggles. At the time of filing, the company listed assets of $358 million and liabilities of $399 million.
However, on September 16, 2024, Red Lobster officially exited bankruptcy protection. This came after a federal judge approved the company's reorganization plan on September 5, 2024. The approval of this plan cleared the way for Red Lobster to emerge from bankruptcy and begin a new chapter in its operations.
As part of the restructuring process, a group of investors known as RL Investor Holdings LLC, organized and controlled by Fortress Investment Group LLC, acquired the restaurant chain.
This acquisition was completed by the end of September 2024, allowing Red Lobster to operate as an independent company.
The company's emergence from bankruptcy includes several key changes:
1. New ownership structure under RL Investor Holdings LLC.
2. Appointment of Damola Adamolekun as the new CEO.
3. A commitment of over $60 million in new funding to revitalize the brand.
4. Closure of several underperforming locations, with 545 restaurants remaining operational across 44 U.S. states and four Canadian provinces.
While Red Lobster has successfully exited bankruptcy, it's worth noting that the company still faces challenges. It reported significant losses in recent years, including a $76 million net loss in fiscal year 2023[2]. The company aims to achieve positive net income by fiscal year 2026, projecting a $2.1 million profit, which would be a marked improvement from the expected $52 million loss in fiscal year 2025.
In conclusion, Red Lobster is no longer in bankruptcy as of September 2024, but continues to work on improving its financial position and revitalizing its brand under new ownership and management.
Citations:
[1] https://www.npr.org/2024/09/06/nx-s1-5103675/red-lobster-bankruptcy
[2] https://www.restaurantdive.com/news/red-lobster-post-chapter-11-projected-financials/722320/
[3] https://www.latimes.com/business/story/2024-09-06/red-lobster-says-it-had-a-great-day-after-it-moves-closer-to-exiting-bankruptcy
[4] https://www.restaurantdive.com/news/red-lobster-problems-behind-the-bankruptcy/716658/
[5] https://www.usatoday.com/story/money/restaurants/2024/09/05/fortress-investment-group-aquires-red-lobster-bankruptcy/75092264007/
[6] https://www.usnews.com/news/business/articles/2024-09-16/red-lobster-exits-chapter-11-bankruptcy-protection
[7] https://www.seafoodsource.com/news/foodservice-retail/red-lobster-places-bankruptcy-in-the-rearview-but-not-its-debts
[8] https://www.thestreet.com/restaurants/red-lobsters-emergence-from-bankruptcy
end of segment
Silver and Gold last Friday of 2024
Silver up 33.5% on the year
The percentage increase from $22 to $29.38 is 33.5%
Gold up 31.41% on the year
The percentage increase from $1,990 to $2,615 is 31.41%
