The air is rushing out of the retail bubble. It’s easy to finger-point at the internet and blame it for the black cloud enveloping the brick and mortar retail sector. But in truth, it’s not all Amazon’s fault. During a podcast last spring, Peter Schiff put his finger on a more fundamental problem.
While online sales have increased significantly, they still don’t make up for the total decline in sales in brick-and-mortar stores. Peter believes the problems in the retail sector reveal disturbing economic truths about middle America.
"Another reason people are shopping on the internet, other than just the convenience of not leaving your house when you’re doing your shopping, is the fact that the average American shopper is broke. They can barely afford to buy the stuff that they’re buying. In fact, most people are buying stuff that they can’t afford. They’re just buying anyway and they’re using a credit card…Retailing is a shrinking market because Americans’ pocketbooks are shrinking, their paychecks are shrinking.”
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