A big suburban shopping mall is dying, yet I’m not shedding any tears

Today I took my two daughters to a movie. The theater was located in a large suburban shopping mall in Southwest St. Louis County, "Crestwood Plaza." I had not been to this mall for several years, and I was shocked at what I saw. Approximately 40% of the stores have been shuttered and the entire place was like a ghost town. A lonely security guard told me that the stores have been rapidly failing over the past two years. That comports with my recollection. Two years ago, this mall was a packed and thriving shopping area located in a solidly middle-class community. Crestwood Plaza is not an isolated story; shopping malls are failing all across America. [I've posted a gallery of today's images many of these shuttered stores along with this post. If you don't see that gallery, click the title to this post to go to the permalink, where you will see those thumbnails.] I sometimes get snarkish when someone tells me they're going to a shopping mall. I sometimes ask the Intrepid shopper to do me a favor and buy something practical for me, "Could you please buy me a hammer." I usually get the same reaction, a puzzled look accompanied by a response "They don't sell practical things like hammers at shopping malls." Now I'm not denying that malls sell clothes or that we need clothes. Most mall clothes are for far more than staying warm or covering up. They are much more often than not, for impressing others. For that reason, I'm not shedding tears for the shattering of dozens of mall stores at Crestwood Plaza or anywhere else. The failure of most of the stores means that we won't be buying things we don't actually need. Because Hallmark no longer sells its commercial greeting cards, we might be "forced" to create and send our own personalized cards and letters to each other. Now that Libby Lu gone, our pre-teen daughters can get back to being children rather than obsessing about their sex appeal. In my mind, many of these store closings are mostly good things, although I am saddened by the thought that so many people have lost their jobs due to these shutdowns. See these terrific videos by Josh Golin of CCFC regarding the dangers of turning our children into rampant consumers. Another silver lining is that the mall owners have been forced to do something different with their space in order to survive (assuming they do survive). What they've done at Crestwood Plaza is to lease out many of the "store" spaces to art galleries, educational facilities, community theaters and other arts and crafts workshops for children and adults. In other words, it appears that the mall owners are opening up their malls for people who want to develop their minds and skill-sets rather than simply their pocketbooks.

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Barack Obama still not shooting straight on the economy

In the June 19 edition of The Nation, William Greider, a political journalist, argues (in "Obama's False Financial Reform") that Barack Obama needs to stop running interference for politicians and Wall Street. The proper parties to blame for the economic meltdown and a legitimate long-term fix are two sides of the same coin. Greider argues that Obama's "reform" is merely "kicking the can down the road." Greider pulls no punches:

The most disturbing thing about Barack Obama's call for financial reform was the way in which the president falsified our predicament. He tried to make it sound as though everyone was implicated in the financial breakdown and therefore no one was really to blame . . . That is not what happened, to put it charitably. Unlike some other presidents, Obama is much too intelligent not to know this. The regulatory system was not overwhelmed by historic forces. It was systematically gutted and dismantled by the government in Washington at the behest of the banking interests.

If you want specifics, Greider's article has lots of them. Consider what to do about Obama's false solution to unregulated mortgage securitization. As Greider explains, Obama's proposed solution is clearly bogus, yet there is a real solution:

Obama's answer is to require the originating lender to retain a 5 percent interest in the mortgage and pass on the rest. That seems ludicrous and innocent of how that cutthroat world actually works. The financial geniuses who created the subprime mortgage scandal could hide 5 percent of the mortgage value with a couple of keystrokes--adding fees, closing costs or other dodges. To hold lenders genuinely responsible, they should be made to hold onto something like 50 percent of liability for the original loan with perhaps the other 50 percent assigned to whatever bank or investment house packages the mortgage security and sells it to financial markets. That would be "responsibility" with old-fashioned force.

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What Americans owe on their credit cards

What do Americans owe on their credit cards? A huge aggregate amount that constitutes a ticking time bomb that could further devastate the economy. Here are the details, from Consumeraffairs.com:

Average bankcard borrower debt, defined as the aggregate balance on all bank-issued credit cards for an individual bankcard borrower, inched upward nationally 0.82 percent to $5,776 from the previous quarter's $5,729, and 4.09 percent compared to the first quarter of 2008. The highest state average bankcard debt remains in Alaska at $7,476, followed by Tennessee at $6,869 and Nevada at $6,677.

This is per individual bankcard borrower. For the average debt of a married couple, then, double the average amount. The same site reports that the number of consumers who are three or more months behind on their credit card payments is up 11 percent over the same period from 2008.

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The myth of the American Elite

I came across a wonderful post at firedoglake today, a few days after it posted. Dean Baker, writing about the Fiat-Chrysler merger, highlights the growing disparity between so called 'knowledge workers' and the blue-collar manufacturers who have so often been at the sharp end of outsourcing. As he states

The media coverage of the auto bailouts has focused on the need for union autoworkers to take big pay cuts, causing them to once again miss the real story. The Fiat-Chrysler deal shows that the pay problem is at the top, not the bottom. At the end of the day, the new Chrysler is still likely to be producing most of its cars in the United States. What the new company will be getting from abroad is technology and top management. [...] While this story of the US becoming a high skills center in the world economy may have been comforting to the elites, and was widely promoted by economists and the news media, there was never much truth to it. Highly skilled professionals did well in recent decades not because they succeeded in international competition, but rather because they were largely sheltered from it.
Over the past ten years those elites have gained in accelerating salaries and in a lower tax burden (see also my earlier post on the rich/poor tax divide) while the blue collar workers wages have largely stagnated, and fallen behind in real terms. As Baker says
If we compare wages for assembly-line workers in Europe and the United States, there would not be much difference between the pay of UAW members and their counterparts in Europe. However, there would be a very large difference between the multi-million dollar pay packages of the top executives at the US companies and their European counterparts. The pay gaps persist among the more highly paid engineers and management personnel.
The remaining differences are that European workers do not need to reserve a significant portion of their weekly wage to cover healthcare costs, that they receive many more vacation days (between four and eight weeks for most Europeans), and that their supervisors, engineers and management are not a world apart in terms of salaries, benefits, and lifestyles.

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