Where do you buy clothes and housewares now? Where do kids gather? Totally agree that the death of malls is ominous for our civil society, already diluted.But our capacity to fill the material void these brands leave is beside the point. The death of mid-tier retail should concern us all – because those empty storefronts are a direct reflection of our society.
The mass prosperity of the 1950s, 60s and 70s gave birth to much of the retail now decaying around us. We have arrived, instead, at a world of thriving luxury malls at one end of the income spectrum and resale shops, dollar stores and discount chains at the other. E-commerce accelerated the decline, but the root illness has always been economic. Artificial intelligence will only deepen it, further decoupling business productivity from the need for white-collar labour and concentrating the gains accordingly.
This isn’t merely a retail problem. It’s a societal one – for two reasons. First, the wealthy cannot buy enough to fill the hole the middle class is leaving behind. The rich may buy more expensive socks, but they don’t have more feet to put them on. Second, every new closing drives greater market share into the hands of already-enormous companies like Walmart and Amazon, creating a monopsony dynamic that pushes employee wages down and consumer prices up. When markets concentrate, everyone loses – workers, consumers and suppliers alike, exacerbating the downward spiral and further widening the mid-market chasm.
And the damage runs deeper than economics. Extreme polarization erodes faith in public institutions, in the basic fairness of capitalism and ultimately, in democracy itself. In a May, 2023, survey by the Angus Reid Institute, fully one-third of the 1,600 Canadians polled claimed to have lost all trust in democracy. It’s hard to blame them. Democracy did not insulate them from the reality of a K-shaped economy, with growth for the top 20 per cent of earners and stagnation for the rest.
None of this is new. It is the result of a 50-year march toward a society of haves and have-nots – a co-production of business and government, from both sides of the aisle. From the automation and offshoring of manufacturing in the 1970s and 80s to the spectre of AI causing a white-collar wipeout today, the gains of rising productivity over the past half century have flowed almost entirely to capital and away from labour. What we are witnessing now is simply the harsh inflection point – the visible tip of a very large iceberg.
Those closed stores and hollowed-out shopping centres are a bellwether, for where our society stands today and where it is headed. And whether they recognize it or not, every business has a stake in reversing the trend, including those benefiting from the fallout. The long-term health of the consumer economy, and of our society, depends on it.
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