The recent announcement of Borders Group, inc. filing Chapter 11 bankruptcy is something that has effected me personally. I am an avid reader; I’m the kind of person that is always carrying around my current read – from Dostoyevsky to Vonnegut. I used to live only a couple miles from the South Austin location that’s closing down, a location that I have frequented since its opening. I’ve even put in an application there on a couple of occasions. I went there today to do a little research. There was a twenty percent off sale and the place was packed. There were lines almost to the back wall of the store to check out – far more people than I have ever seen in the store before. I think that’s sad. Twenty percent off isn’t a terribly huge sale, yet it attracted that many “readers.” I feel that if that many people had even bought a single book there, Borders might not even be in this predicament. To nonfair-weather fans of literature, price is not a factor in which they would put much stock. However, even though I would thoroughly disagree, to many people literature is superfluous. When times are tough any extraneous costs are cut. It’s an understandable thought process.
However, from a financial viewpoint, I think that this is a good thing. If a business can’t manage itself well enough to hold its own in the market, then it probably doesn’t deserve to remain an engaged corporation. Though I’m not a Republican, I don’t believe that government bailouts are a good option. They hurt Americans as a whole to maintain poorly managed establishments. The failings of Blockbuster and Borders should put fear into the hearts of other businesses and keep the “too big to fail” ideology to a minimum. This should actually improve the future of American commercing.
However, we can’t allow this commercial failing to effect the actions of the public. Economics works on the fabled system of supply and demand. If the average American becomes too afraid of their fiscal future, the demand portion of the scales deteriorates. If demand lowers, then supply would have to match by downsizing – which would lose many people their jobs. This would lead into a deadly spin-cycle called a depression. What we need to do is keep the spirit of the 90s alive. Everything will be phat (to use term speech). Please view the following video if you have any doubts.