Broken Borders

Fair-weather readers should probably choose from this section.

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.

  1. #1 by Megan on March 1, 2011 - 5:10 pm

    Great blog! That sucks that the Borders by your house closed! I liked your comment that said “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.” I never thought about that way but it’s very true.

  2. #2 by shotinty on March 3, 2011 - 8:18 pm

    Sorry your favorite book store is closing.. But I think that in Austin the smaller more personal stores will thrive..

  3. #3 by ohstanzi on March 3, 2011 - 11:20 pm

    What goes up must come down. Hopefully you’re right in saying that this’ll keep the “too big to fail” ideology to a minimum. Maybe people/companies will start learning to enjoy a lack of power for the security.

  4. #4 by marissamartinez11 on March 4, 2011 - 9:48 pm

    I am totally with you about being an avid reader and how the closing of a bookstore like Border’s is affecting you. I, myself have also put in an application at Borders in the past, though I never got the job I still continuously shop there. I like having a real paperback book rather than a nook or kindle. I also agree with you on not being a big fan of bailouts. When the government bails businesses out of bankruptcy, they depend on the bank to help them get back on their feet and companies like that really shouldn’t be in business, in my opinion that is. Its gonna be weird not having a Border’s around, that much I know.

  5. #5 by lauren on March 5, 2011 - 3:31 pm

    I also like your quote “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.” I never thought about it that way, and that is very true. I also agree other businesses need to learn from what’s already going on and be smarter about their way of holding their own.

  6. #6 by mayradiaz91 on March 6, 2011 - 5:38 pm

    I also have been to that Borders location several times and am also sad that it is closing down.
    I really enjoyed our blog and how you included your personal experience.

  7. #7 by chancellormartin on March 6, 2011 - 6:51 pm

    You are totally right when you say that if a company can’t keep itself on its feet financially then they shouldn’t be in business.

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