Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Why Is the Retail Sector Struggling? People Are Broke – Especially Millennials

  by    0   0

When we reported on the Toys R Us bankruptcy, we argued that it wasn’t just about shifting shopping patterns away from brick and mortar to online companies. A recent article on TechCo complaining that millennials are broke backs up our assertion.

As we pointed out, online retail sales have increased significantly, but they don’t account for the total decline in sales in brick-and-mortar stores. Peter Schiff has argued 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.”

Data on consumer debt backs up Peter’s contention that Americans are putting a lot of their purchases on plastic. He went on to say we need to look at the bigger picture when analyzing retail woes.

Wall Street can just be very dismissive about this and very complacent just chalk it all up to, ‘Hey, this is just automobile putting the buggy whip manufacturer out of business.’ This is not what’s happening. This is a sign of real problems in the US economy.”

The TechCo article dovetails with this theme from a millennial perspective. Connor Cawley bemoans the fact the his generation gets blamed for killing failing industries. He says it’s not their fault.

If you think about it for more than a few seconds, you’d realize something rather significant: Millennials aren’t killing anything. We’re just broke and all these outdated businesses are rightfully falling by the wayside.”

Now, he does reference outdated businesses. Of course, few people deny there is a shift from older brick and mortar companies to online retailers such as Amazon. At any rate, Cawley’s main gripe doesn’t seem to be with the mall, but with restaurants like Hooters that objectify women. Regardless, he does manage to drill down to a more fundamental factor driving business decline.

Millennials don’t have any money.

If you hadn’t heard this yet, your Millennial news alert must be broken. Other than our murderous ways when it comes to business, Millennials have been defined by our lack of sufficient funds. Maybe it’s because of student debt. Maybe it’s because of avocado toast. The only thing we know for sure is that we don’t have any money, and the numbers back us up.”

The stats are pretty convincing.

According to one study, millennials earn approximately $10,000 less than members of Generation X and will likely make around $100,000 less over the course of their careers. On top of that, they are saddled with over $1 trillion in student loan debt. This has significant economic ramifications. A study by American Student Assistance and the National Association of Realtors found 71% of students cited student loan burden as the main factor for delaying a home purchase.

Cawley sounds a little whiny, but he makes a valid point.

We can’t buy homes because you took all our money, we don’t have credit cards because you ruined our credit, and we don’t go to Home Depot because we don’t own homes or carry credit cards. It’s that simple.”

The bottom line is broke people don’t buy a lot of stuff. When they do buy stuff, they find the cheapest way possible. So, it’s not necessarily true that shoppers don’t want to go to the mall and try on clothes before they buy them. It’s that they can’t afford to. They can’t spend the extra few dollars for the shopping experience.

And it’s not just millennials. Americans representing every demographic feel the squeeze. Wages are stagnant. Debt is soaring. Costs are rising.

Nope. It’s not just about Amazon.

Photo by Dave Croker

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Government Policy Changes Should Boost Indian Gold Market

Some policy shifts recently announced by the Indian government in its Union Budget will likely have a positive impact on the country’s gold market. India ranks as the second-largest gold-consuming country in the world, second only behind China. The three key policy changes that will likely affect the gold market are:

READ MORE →

Fed Expands Record Holdings of US Debt

The Federal Reserve expanded its record holdings of US Treasuries in the fourth quarter of 2020 as it continued monetizing the massive federal debt. The Federal Reserve added another $253 billion to its Treasury holdings in Q4 according to the Fed’s Treasury International Capital data released on Feb. 16. That brought the central bank’s US […]

READ MORE →

US Treasury Department Set to Unleash Another Tidal Wave of Inflation

The Federal Reserve increased the money supply at a record rate in 2020. And a move recently announced by the US Treasury Department will mean even more money flooding into the marketplace. In other words, another tidal wave of inflation.

READ MORE →

The Fed Just Keeps Getting More and More Dovish

Is Jerome Powell the most dovish Fed chair yet? Peter Schiff said he wasn’t when he first took the position and was raising interest rates. But he is now. The minutes from the January FOMC meeting released last week bear this out. “We’re all doves now. That is the problem, the Fed gets progressively more […]

READ MORE →

Kansas Bill Would Make Gold and Silver Legal Tender in the State

A bill introduced in the Kansas House would recognize gold and silver specie as legal tender and repeal all taxes levied on it. The legislation would pave the way for Kansans to use gold and silver in everyday transactions, a foundational step for the people to undermine the Federal Reserve’s monopoly on money.

READ MORE →

Comments are closed.

Call Now