Is Our Addiction to Saving Money Destroying the Real America?

Jonathan Mead Says:

August 21st, 2008, 21:22 pm

I’m not sure that saving money is the problem. We Americans actually save less money than any other country in the world. It’s all about consuming baby!

http://illuminatedmind.net - The less boring side of personal development

Writer Dad Says:

August 21st, 2008, 21:23 pm

My family has had a small, successful flower shop for the last thirty years. We have always sold high quality flowers at a low price. I grew up in this business, loved it with all my heart, and even met my wife among the tulips. It is now in its dying days because it is surrounded by large corporate grocers that sell their flowers at a price with razor thin margins that we cannot compete with. Sad indeed.

Jin Says:

August 21st, 2008, 21:27 pm

Even if I wanted to give family owned shops business, it’d be hard to do now. They’ve pretty much all disappeared around where I live.

This article made me think the South Park episode on Walmart for some reason.

Cody Says:

August 21st, 2008, 21:30 pm

Jin, I think you speak directly to the fact that we aren’t just losing family-owned America, but have already lost much of it. And it is a shame on many levels.

The question remains, however, whether this process can be reversed?

Thomas Herold Says:

August 21st, 2008, 21:33 pm

Who saves money in America? If anything is responsible for the money deflation than it’s the debt system.

People buy more things on credit than they can afford. The government is in more debt than ever.

Cheers

Thomas Herold
CEO Dream Manifesto

deepali Says:

August 21st, 2008, 21:45 pm

A thing can be true and not true. We are not saving money in the absolute, but merely in the short-term relative sense. We’ve been suckered into buying mass-produced cheap quality because we’ve been suckered into buying more. And it’s a vicious cycle.

I think if we did real savings math, we’d realize that spending a bit more on quality and the experience would save us more in the long-term.

Leo Says:

August 21st, 2008, 21:49 pm

I think there’s a confusion between the two meanings of “saving money” here.

Paul, in this guest post, is talking about buying cheap things as opposed to higher-quality things — saving a few bucks as a result, but sacrificing a lot.

I think a few of you are talking about saving money in the bank (or wherever), which isn’t what he means at all. In fact, I think Paul would agree that not many people in America are actually building up a savings these days.

Ryan McLean Says:

August 21st, 2008, 21:51 pm

This is a very good point. But is there anyone out there who is actually willing to pay extra money in order to support the local grocery store owner. I know I am only willing to pay extra when it is an emergency. Otherwise the bigger department stores offer greater variety, greater value and better service….so why would I protect the grocery store owner when target etc are better for me?
Not trying to be cruel, but in the real world if I can pay less for better service then I will, and so would everyone else.

DR Says:

August 21st, 2008, 21:51 pm

Well, that’s a wake up call.

It actually made me stop and think.

And that’s when I realized that maybe that’s the point. We very seldom stop and think anymore.

Most of our lives are spent repeating the same tasks day in and day out.

We shop at the same store, eat at the same restaurant, buy gas from the same station…

When I thought back about some of the best meals, or retail experiences or books I have read or movies I have seen, very seldom has the best of the best been acquired from a big chain.

My dad always takes me to his favorite breakfast restaurant when I come to visit. It’s a real treat. Great food, ambiance and service.

And yet, he grabs an egg mcmuffin for breakfast almost every day.

How does that make sense?

What will he thinks when he finds out that that great little restaurant has gone out of business because people choose the mediocre over the exceptional

Great post

On another note, isn’t it kind of sad that people rush to comment on Zen Habits without even reading the entire post. But at least their websites get free publicity

Your Friendly Neighborhood Computer Guy Says:

August 21st, 2008, 21:59 pm

That’s what democracy, capitalism, and manifest destiny will do to a country. I’m not saying it’s a bad thing, it’s just a thing. People are inclined to take the most convenient path to get what they want and that’s what corporate America offers.

Damien Franco Says:

August 21st, 2008, 22:02 pm

I love to hear that others share the same concern I have for the Independent Small Business Owner. Sure, we rally when a local coffee shop closes it’s doors and all start bashing on Starbucks, but how many other companies are killing off their local competition without any attention to speak of?

MJL Says:

August 21st, 2008, 22:03 pm

Sorry, but this whole thread seems to be long on bit self-pitying, sappy nostalgia.

There’s a chain restaurant - Denny’s - that we go to every Sunday for breakfast. We know most of the waitresses, get superb service, and have fun chatting with them. It would be hard for any family run business to top this, though there are a few we frequent that equal Denny’s.

There’s also a bit of economic elitism at play - WalMart is a place where families of modest means can get food, clothes, etc., at a reasonable price. Sure, Mom-and-Pop places are fun and cool - but only if you have the stash to afford them.

Places like WalMart also have room for the slightly idiosyncratic, like my brother-in-law, who does fine at WalMart but who has just enough mental problems to make him unemployable at a Mom-and-Pop (his Mom and Pop having died over 25 years ago).

Kieffer Says:

August 21st, 2008, 22:15 pm

And then I can click through to Dave’s website where he’s got a link to buy the book and DVD from that cozy li’l mom-and-pop bookstore, Amazon.com.

Overcoming Lifes Obstacles Says:

August 21st, 2008, 22:16 pm

Another reason small America is dying …

I live in a fairly small town - for California anyways. When I first moved here there were a few family owned restaurants - great food, great service. The owners got to old or sick to run the business (or died) and the family did not want the responsibility of the business.

The kids that grow up in small towns don’t want to stay there and run the family business - they want to go to the BIG city and experience life.

For example: My children, 28 & 29 yrs old grew up in a town with less than 5,000 people. Where do they live now? Phoenix and Las Vegas …

Jin Says:

August 21st, 2008, 22:20 pm

MJL, i can see where you’re coming from. Mom ‘n Pop shops definitely symbolize a simpler and more innocent era of the American life. As for Walmart, it gives to same people it takes away from.

Vered - MomGrind Says:

August 21st, 2008, 22:21 pm

“I don’t want to see the magic of the family-owned America disappear.” This is a beautiful sentiment, and I enjoyed reading this article.

But I’m afraid it’s too late. It can’t be stopped. To me it’s like saying that you miss the intimacy of life before TV or the internet and would like us get rid of those. Sure, life is very different now, but we can’t really go back, and I’m not sure we should.

Khürt Williams Says:

August 21st, 2008, 22:33 pm

I am not sure the small local businesses could provide the services for the amount of people I see in the Target, Best Buy, Wegmans etc.

Jonathan Mead Says:

August 21st, 2008, 22:45 pm

Leo, you’re absolutely right, I completely misinterpreted what Paul was saying.

I do agree that multi-billion dollar corporations are making it ridiculously hard for small business owners to compete. How do you compete with companies that outsource to China for $.05 per unit?

I think the only way we might have a chance is buy just simply out-serving. Money isn’t everything, to everyone. Being real and personal can go further than a few bucks.

nick Says:

August 21st, 2008, 22:51 pm

This article really hits on the truth. I remember being so excited when I was a kid and then disappointed when I got older and realized what had happened.

The sad thing is that you really don’t save that much. Especially if you compare quality and how long a particular item lasts. In the ling run the better stuff with reliable friendly service is worth a lot more.

Living on the edge of Tokyo, I am still able to find a few mama and papa shops and I try to go there when ever I have a chance.

db Says:

August 21st, 2008, 23:01 pm

To the Brits feeling disappointed in the real America that exists today — join the club. I live in this country and dislike about it exactly what you’re talking about.

Of course, even “back then” I bet the reality didn’t meet the nostalgia of the TV. But I bet it was a lot closer. And there were other bad bits too.

But I think it’s too late to change it. And worse, it’s spreading around the globe. I remember reading an article recently about a repeat traveller to China who was feeling blue because the quaint Shanghai he’d fallen in love with that seemed so exotic has all but disappeared to be replaced with a mad rush towards adopting a more westernized lifestyle.

Saravanan Says:

August 21st, 2008, 23:14 pm

Living in India and thinking about the above post gives me a vivid picture. Right now India is undergoing change and there are loads of “the man” showrooms and outlets every other place. I don’t have anything against them. I believe in “Live and Let Live”. If we think of “the man”, I am sure even he would have struggled his way up. Its all fair I guess.

But to support the family run business, I do ensure I shop at that place whenever I can and willing spend extra few rupees since I think I can afford it. It is just a way to say “I support you”. I would love to support people who are not greedy. Being in business after “the man” showed up proves their mettle and I love it.

If you want to support such family run business, I would suggest you to buy stuff from them whenever you think that the price you pay is not a big difference.

Indians are fascinated by Western Lifestyle. We are just copying everything. Hope its good for us. :)

Brett Says:

August 21st, 2008, 23:17 pm

I’m split on this issue. Yes, I’m sad that little mom and pop stores are disappearing. I’ve been to some great diners and nice independent bookstores and have always enjoyed the service.

But one could make the argument that there’s nothing more American than Shell stations, Chili’s and Barnes and Nobles. I’ll admit, I enjoy eating at Chili’s. I like the fact that I can go to any Chili’s in America and order the Grilled Pepercorn Burger and it will taste delicious. The section of books at Boarders can’t be beat either.

Sometimes we villainize big chain businesses and in many cases that criticism is deserved. But most of the big chain businesses started out as a small mom and pop store. They got big because people like the product and service they provided.

danielle Says:

August 21st, 2008, 23:40 pm

While the main idea of Paul’s article is interesting, what unfortunately stands out the most to me is his description of the used car as, “Yes, it broke down more often than a jittery manic depressive in group therapy.” Such a description is careless, insensitive, and unhelpful. It casually reinforces unnecessary negative connotations regarding people with complex mental health conditions.

bdr Says:

August 21st, 2008, 23:45 pm

Funny that a Brit would say that about the US. I’m an Aussie and had my first trip to the UK a couple of years ago, and one of my strongest impressions was how every single town centre (High Street) was almost exactly the same…WH Smith, Boots. chain books stoers, electronics etc.

David Olson Says:

August 21st, 2008, 23:48 pm

Amen brother.

Justin Says:

August 22nd, 2008, 0:01 am

I used to shop for groceries at the big box place a couple blocks from my house rather than the local store two blocks the other way because I thought I was saving money. Then I checked this idea.

I bought half of my groceries from one store, half from the other. Roughly the same items. The “savings” was about $2.50. The food from the local store - SO much higher quality.

The real defeat in the US is the spirit of the people. We no longer believe in ourselves. We are a fearful people, afraid of losing our jobs, afraid of not having enough money, afraid of being seen as different. We see lack all around instead of opportunity. So we cheat ourselves.

We don’t have to. We choose to. And what’s sick about it is we usually use our kids or our boss as an excuse for our own lack of effort.

Kudos for this article, man. It’s the tops.

TDC Says:

August 22nd, 2008, 1:34 am

From a Brit still living in the UK, I can sadly say it’s not just America where this is happening. Having lived in a historic market town for over 30 years I have seen the decline of the independant familly run shops only to be replaced by chain stores who monopolise the market place and destroy the history of the town. In doing this they make one town look just like another and there is no longer anything unique or special about one town over another.

Art Says:

August 22nd, 2008, 2:57 am

I did arts & crafts shows for over 10 years. The essence of ‘mom & pop.’ What better way to provide a unique product with superior quality at a reasonable price. Customers loved our stuff and we gained quite a following. We matched our quality product with world-class customer service.

Then the fees for various shows started to drift upwards. We had a great product at a great price and I was able to do pretty good. These fees cut right into my margins and I refused to lower my quality or change my customer service.

I ended up doing fewer shows. Pretty soon, the realities of the marketplace were such that it did not make financial sense to continue.

Fast forward a few years. Now I see Nike booths at local pow-wows and commercial interests at screened art shows. Greed destroyed the small business opportunity in this venue.

In 10 short years it went from Craigslist to Ebay.

I buy local whenever I can.

matthijs Says:

August 22nd, 2008, 4:18 am

I try to buy local and mom and pop as much as the next guy (the next guy with some disposable income, that is. the poorer segment of society has no choice but to buy at Walmart or Aldi) but I also try not to delude myself into thinking that chains do not provide something that mom and pop can’t and that we, apparently, want very much: reliable service, consistent products and convenience (ubiquity).

Not sure how it is in the US, but in the Netherlands chains are not, usually (Aldi and Lidl excepted), cheaper than mom and pop stores. So it’s not an addiction to saving money that’s destroying mom and pop outfits. It’s got to be something else.

Jens Dalsgaard Says:

August 22nd, 2008, 4:30 am

Trying to live a frugal life means giving money to ‘the man’. Where I live independent places are where the ‘rich’ people go just as much as a statement as anything else. They are by far more expensive.

It does sadden me that McDonalds and 7-11’s are more visible in my neighbourhood that local restaurants and kiosks.

I live en Europe and yet big American chains cover most of my choices. It is happening all over the world. So the focus is not only America, but the entire world.

Michelle Says:

August 22nd, 2008, 5:16 am

Although I’ve been reading this blog for some time, I’ve never felt the need to comment before, but your post resonated with me.
When my son recently asked me “when you were little, what did you want to be when you grew up”, and I thought back I remember vividly wanting to be American. I would chew gum and call spots zits, using all the americanisms I knew. The America I loved was the America of TV, where every kid had a tree outside their bedroom and a soda fountain store.
I recently saw Dave at Latitude Festival, promting this very book, and he is nothing if not a realist. It was great for him doing the trip, but there he was at the festival sponsored by Pimms, promoting a book that would be sold by Waterstones and Amazon, and he said himself, “we’re all whores”.

Katy Says:

August 22nd, 2008, 5:19 am

I agree with TDC, this isn’t just happening in America.

I live in a small village in England with a population of under 1000. We have a small village shop but most people choose to drive 4 miles to our local out of town supermarket. Why? because milk is 20p a pint cheaper.

People don’t realise what a valuable resource these local shops are, they knit the community together and provide a focal point for those who can’t or won’t go out of town.

The weird thing is that even though people don’t use these shops, when they’re faced with closure due to lack of patronage, all of the villagers rally around to save the shops and then still don’t use them!

Brandon Watkins Says:

August 22nd, 2008, 6:47 am

Well done article. It doesn’t change the point whatsoever, but Best Western is a marketing cooperative of independent hotel owners. Substitute “Marriott” and it’s all the same.

Wal-Mart America is dependent upon cheap oil. Cheap oil turned into plastics to make cheap products half-a-world away and ship it (with cheap oil) to Los Angeles or Seattle where it’s driven (with cheap oil) thousands of miles around the country. When it finally arrives on the shelves, people dependent on cheap oil to fuel their cars drive 20 mile round trips to buy $65 worth of stuff. It probably cost them an extra $4 to drive that distance to buy it at the “discount store” rather than locally.

But cheap oil is on its way out. Huge increases in the cost of oil are causing price increases in everything from plastics manufacturing to gas in the car to drive to the Wal-Mart. The drop in the value of the dollar makes foreign manufacturers want more dollars to equal the cost of production. For the past 7 years the supply chain has absorbed much of these costs so that price inflation was somewhat minimized.* (see notes below). However, the latest wholesale inflation numbers are huge; 3.5x the expected reading. The supply chain can’t and won’t absorb the costs any longer. We’re finally going to start seeing these price increases… especially at big box stores which source cheap plastic products from the other side of the planet. Prices will go up everywhere, for sure, but durable products made closer to home and sold in local stores that buy from those suppliers (rather than use national warehousing and trucking systems) will be increasingly competitive. Cheap oil is ending, and so may the cheap big box stores.

* Note: The methodology used to calculate inflation has been modified substantially in the past 25 years. Inflation in 1980 was a staggering 14%. The latest reading on our inflation is 5.6%. However, if we use the same method of calculating inflation that was used in 1980, the current inflation reading becomes 13.8%.

"Motivate Thyself" Says:

August 22nd, 2008, 6:52 am

I am a small business owner myself. I have a technology consulting business in my home town where I do quite well. For me, having much of my competition be that of the corporate kind, I enjoy the ability to fill the holes that are too big and impersonal to fill. My clients choose me over them because I do things like actually answer my phone, reply to emails and take personal interest in their well being. This is a service that the “The Man” can’t offer and because of this I will never go hungry. If all the similar businesses in my town were “the little guys” I would have much more competition in my niche and not be doing as well. That is just a different point of view.

As for the article. I kind of felt like it was based more on feelings and less on fact. First of all, nothing you see on TV is like it is in the real world. I lived in London for a time and I always came across those who worshiped the US. When I would ask them why they liked it so much they would basically describe an episode of 90210. Even the older crowd would talk about wanting to visit America in hopes that it lives up to it’s “Leave it to Beaver” impression.

And as for the “evil corporations”, like someone said earlier, most started out as a small business and grew because they provided something that the competition could/would not. WE chose to build up these companies. WE decide what’s important to us and use our wallets to show this. I don’t understand why people are so bent on the idea that we are all better off with a bunch of ‘mom and pops’. Sure, some may provide a good product and there’s no doubt that they can give you that personal touch but, for the most part, these “big bad corporations” fill a need that wasn’t being filled.

I think it’s interesting how we tend to look at a particular place in time and think that we can make it last forever. Everything changes. Advancements in technology, growth in population, the Stock Market, you name it. And as we progress as a society, so do our needs and desires. And the idea the we can meet these changes with ‘Mom and Pop’, to me, is just insane.

It was those ‘Big Bad Corporations’ that turned out the mass of tanks and airplanes in WW2 that helped defeat the Nazis. The big companies are what give the US it’s muscle. And the small businesses give us our heart. One without the other would result in the death of a great nation.

(I appologize for the long comment but this just hit a cord with me.)

One more point. Small businesses haven’t gone down as much as they’ve adapted. When we think of ‘Mom and Pop’ we are usually referring to brick and mortar types. These are usually product based and therefore can’t compete with a Wal-mart or a Target. But service businesses are different. Like I said earlier, the big businesses can’t give the customer the personal touch of the one man show. You can’t put that on an assembly line. So a lot of brick and mortars have just changed over to a service style business and done quite well in the process.

Pete Says:

August 22nd, 2008, 7:04 am

I live in NJ, and there has not been a Mom & Pop shop since Blockbuster became huge. The last one was a video store, if I remember correctly.

I’m not a big fan of corporations, but speed and price have definitely overshadowed friendly business practice.

http://yinvsyang.com/

deepali Says:

August 22nd, 2008, 9:00 am

I’m curious if the movie showed any of his bad experiences with the mom-and-pop stores. There are two convenience stores at the end my block. One is locally owned and run, and one is a chain place. I try to use the locally owned place because I’ve been guilt-tripped into supporting independent business, but it’s usually the low-point of my day. The regular clientele harrasses me, and the underage kids buying cigarettes and booze are obnoxious. The other store? Security guard holds the door open, store personnel are always asking if they can help. Which should I support?
I have the same problem with my local grocery stores, incidentally.

I think we’re falling into this trap of thinking all independent business is idyllic and wonderful. It’s not. Sometimes, it is just as bad as the big-chain place. The problem isn’t about saving money - it’s about choosing convenience over quality.

LizPf Says:

August 22nd, 2008, 9:32 am

I live in one of the last bastions of small business … New England.

I have no cue where the nearest Wal-Mart is … at least 20 miles away, I’d guess. There’s a Target I go to twice a year 15 miles away. There are a few big box stores closer, I go to them rarely.

The supermarket chains I shop at are locally owned. Even though the gas stations are part of large chains, they are local franchises, with a local feel.

But this is the first place I’ve lived where there are many (many!) independent hardware stores, and everyone nows the best ice cream comes from places where you can still smell the cows. There are plenty of farm stands that sell produce from the farm next door.

It’s a nice mix of local and chain merchants.

Franck James Says:

August 22nd, 2008, 9:36 am

@ Justin :

It’s not just in the US, what you said is absolutely true and there is also this mentality around me in France. My country decrease year after year, economy are worst each day, News and Media lie to people and keep them afraid of the futur. More and more people here are full of fear and anger. it’s the actual mind of people around the world : A mentality of “Victims”. It generates frustrated people.

Here in France, if you are an entrepreneur, you are the enemy because you try to become wealthy. In France, money is perceived as evil and corrupt.

The real question is : Why most people think like that ? Maybe there is a lack of inspiration ? a lack of self-confidence ?

The world change everyday, we have to move with the change and get out of our comfort zone.

Tracy Crowe Says:

August 22nd, 2008, 9:41 am

I certainly regret the lack of diversity in American businesses. I am horrified to hear about the spread of Wal-Mart destroying other small businesses along the way, and as far as I can tell, it is just because Wal-Mart charges lower prices. Never mind that the reason they can do that is because they don’t give their workers adequate benefits and they buy things from sweatshops overseas instead of quality driven American workers. All that people seem to care about is the price they pay. You’re right, they don’t realize what the true price they are paying is. They don’t know what the real cost of having lower prices is. We all lose because of this mentality

Mike Says:

August 22nd, 2008, 9:42 am

I agree with the posters advising some caution here.

Don’t forget when Walmart (they dropped the star, btw) started out rural towns BEGGED to have a store built. This was because many of the mom and pop stores were ripping people off.

It’s called an end of the road monopoly. You can either pay what the local mom and pop store is charging or drive howevermany miles to another store. Live someplace where there is only one restaurant in town and you might welcome a Chillis with open arms. Because the local-yokel joint has a much reduced incentive to provide quality service or food. McDonalds was never about quality, it was about consistency. You knew what you were getting. With mon-and-pops you might get the best burger you ever ate or a dried up grissle patty.

I think what you have now is a case of selection bias where the local-owned stores that are left are quality establishments. And this is because they have to compete with national chains and offer services they don’t offer. Like themed hotel rooms or all night gas service.

For those mom and pop owners that have quality businesses, God bless you and I’ll try and support you whenever I can even if it means a few bucks more. Check out Up Against the Wal-Marts.

Hyrcan Says:

August 22nd, 2008, 9:46 am

Jonathan Mead and Deepali are right it’s not saving money. It’s Consumerism. Convenience at any cost, Consume as much as possible. Who cares that our purchase habits destroy the environment, waste natural resources, etc… at least I have a place I can drive to that has 43 different types of file folders, or a dozen different types of apples year round available to me.

And as for all the people who are thrilled about the “service” or selection of a big box stores. You can’t compare most small shops on equal footing with the big box stores. The damage has already been done. It’s like comparing a man-made lake to a lake that all the waste and run off from the construction of the man-made lake has been dumped into polluting it beyond recognition.

If you want to really compare, you’ll need to first look at how these small shops were before the big box stores ran them into the ground. Then imagine what they could have done…

Dot H. | Deeper Issues Says:

August 22nd, 2008, 10:00 am

Competition and free enterprise are the basis of our economy, and this is what results. I don’t think it’s either good or bad, necessarily. I do miss the small stores, when they were good, but I don’t miss the slowness, the lack of options and the high prices. I’m not affluent — in fact, I need to be more frugal than I already am.

One of the many reasons the giant stores have been able to dominate and buy out small Mom and Pop stores is the exploitation of cheap labor in other parts of the world. If fair trade was implemented worldwide, that might change things.

I used to enjoy staying at bed-and-breakfasts, until the time I stayed in a famous one and that evening, the toilet I was using backed up. I reported it, and the person I spoke to accused me of causing it, went into great detail about what I must have done, and was quite abusive. Since then, I’ve preferred the anonymity of chain hotels.

David Says:

August 22nd, 2008, 10:02 am

Amen. America is being destroyed by chain restaurants and stores - every town is starting to look the same. Where is the independent individualism anymore? Why leave town if the next place I go visit looks the same as where I just left?

Great article, thanks for writing it - I wish more people noticed this huge problem!

sd Says:

August 22nd, 2008, 10:03 am

Ryan M. (”why would I protect the grocery store owner when target etc are better for me”), I would ask if Target, etc., really *are* “better” for you. Yeah, the selection at Target may be good and the prices maybe even better. But what stake does BigBoxMart have in your community? When BigBoxMart buys office supplies and cleaning goods, where do they come from? Some national chain or BigBoxMart Central? Is BigBoxMart buying ad space in local newspapers and school yearbooks, donating product for local fundraisers, or sponsoring Little League teams and local festivals? Where does BigBoxMart’s head honcho (or honcha) live and spend his/her millions? Where I live, Target, Best Buy, and SuperValu *are* local companies. But don’t kid yourself into believing they’re always the best choice around. They sell what moves, and if it doesn’t move, it’s gone. Including the whole store, if it doesn’t meet some non-locally-derived profit figure.

Another case in point: I bought a snowblower a couple of years ago. The local machine shop charged *exactly* the same as that big orange home-improvement center. They helped me figure out which model was most appropriate for my needs. They assembled it for me and carried it to my car. And they give me priority for service if I need it. Big Orange doesn’t even *offer* service. Guess where I’ll buy the next time I need power equipment? Even if it costs a few bucks extra (and maybe it won’t), local is a good deal.

catisonh Says:

August 22nd, 2008, 10:11 am

What is more American than nostalgia? America has changed, but that doesn’t automatically mean it is bad.

America’s economy has evolved along with technology. Wishing for those happy times when most stores were Mom and Pop is also wishing for a time when most people could afford one car only, when long distance phone calls were a luxury, and when foreign grown foods, like pineapple, were almost unattainable. Technology has given us great gains in efficiency. Big chain stores allow traditionally poor people to have products that were impossible to afford in the Mom and Pop days. Take away the chain stores, and you take away some family’s means to buy furniture and supplies for their home. But maybe they would be better living on a farm, growing their own food (just don’t use pesticides!), and unable to afford those Mom and Pop hotels this post so desperately romanticizes.

It amazes me to see how many people want those old days back, but don’t realize that the culture they want was only for a small middle class. Today, the middle class is huge, and for some reason it thinks it can have it both ways. A large middle class cannot support a Mom and Pop store economy, because Mom and Pop prices are too high. Take away chains and you take away the middle class that wouldn’t afford it.

I think Mom and Pop stores are great, but only if they can make the extra money worth it. I’ll pay for personal service when I need it, but when I am buying a coke at the corner, do I really need to worry about whether or not it’s from a chain? I don’t think so.

Think about this. Walmart is actually the biggest Mom and Pop store around. The Walton family still more or less runs the business, after it was started in a little town in Arkansas. If you want Mom and Pop, there is it.

adksunflower Says:

August 22nd, 2008, 10:12 am

That’s all well and good for someone coming from a country with socialized medicine and highly subsidized higher education, but given that we Americans pay through the nose for healthcare–and for college for ourselves or for our kids–we have to find SOME way of saving some money.
By the way, I know lots of independent motels in New England and upstate NY that are cheaper (and yes, lots nicer with more character) than the chains. And yes, I stay in them, to save money.

janelle Says:

August 22nd, 2008, 10:19 am

I agree with Jonathan’s comment in the fact that it’s not necessarily that Americans don’t know how to save; it’s that they’re spending their money on frivolous items that they probably don’t need. America has become so corporatized with advances in technology and chain restaurants, etc., that this is why it is often difficult to find that “special attention” to detail like in the old days…I think that there is too much of a focus on money…

Confused Says:

August 22nd, 2008, 10:37 am

The argument presented here is amazingly underdeveloped and harmful. Good stores most often become chains often because they perform a service or a supply a product very, very well: people value what they do. Burger King makes a better veggie burger than most of the independent diners I’ve been to, and I know they probably have better hygiene and employment standards. Starbucks obviously makes good coffee; they raised the standards for independent coffee shops. Chains are also often able to provide the service or product at a lower price because they are efficient. This is good for the environment. They can be trailblazers. Why are these bad things to value?

I sometimes stay at B&Bs in lieu of chain hotels or motels when I do want something more charming, special, or intimate, but it’s downright harmful to value uniqueness and small ownership above all else. I enjoy rewarding companies, especially big ones, that are often more progressive in their labor policies.

It’s important in developing countries to support family-owned businesses, since corporations there can be very poorly regulated. In the developed world, though, it’s downright wasteful.

This reads like some naive, rural fantasy. It’s not sustainable.

Beth Says:

August 22nd, 2008, 11:04 am

It depends on the type of business. I think there will always be a place for the locally owned and operated resteraunts and I always seek them out both when I’m at home and when I’m traveling. The food scape of the country is supposed to vary and there are so many great things that can be experienced only is certain places and hopefully the foodie consciousness is bleeding into the general population enough to keep these places afloat.

There is a HUGE resurgence in smaller, locally owned specialty stores in hobbies that build around and support a community atmosphere. There is a huge knitting community who support a plethora of local yarn stores big and small and a lot of knitters will seek out the local places over the big chain stores because the products being carried in the big chain stores no longer reflect the direction the community has been heading and they don’t offer and build the same community feel that the smaller local shops offer.

The other exaple I can think of that has survived by building a community are comic book shops. Most owners are enthusiastic about their product, are knowledgable, and find ways to build a community and invite customers to stick around and come back again and again.

The bargain places have killed off some consumer industries, but there are still some niche businesses that have found ways to survive in the big box world that doesn’t seem to die.

Jin Says:

August 22nd, 2008, 11:24 am

@SD, BigBoxMart provide jobs in your community.

Seriously, watch this episode of South Park:

http://www.southparkstudios.com/clips/104409/?tag=Wal-Mart

both side of arguments from this post comments are presented in this episode.

Christian DE NEEF Says:

August 22nd, 2008, 11:45 am

As Jens says, Europe is going the same way, unfortunately. And so is the Middle East where I am currently. It is disappointing to see how fast local economies are loosing their authenticity (if we can use that word in this context).

Mark Says:

August 22nd, 2008, 11:49 am

Oh, that’s SOOoooo nostalgic…. Shut up with your anti-corporatacracy crap. It’s BECAUSE of corporations that we have the ability to live the lifestyle that we do.

I doubt that you built your own computer (from the chipset & motherboards) from scratch in order to post that article.

Did you build the car you drive from scratch? Or maybe you’re too broke to have a car… the bus you ride is made by, take a guess… a CORPORATION. Unless you’re pedaling around in a contraption that looks like it’s out of the Flintstones, your bike is made up of parts made by, guess what… CORPORATIONS.

It is your ambivalence toward America Inc. that makes you the slave that you are. Embrace corporate America.

I’m tired of you long-haired, no-meat eating hippies. Go try and make your own clothes, Gandhi. Long Live Empire America!

Carlo Says:

August 22nd, 2008, 11:54 am

This reminds me of a recent road trip to America that I tok (I’m from Canada). Normally I drive all day (9-12 hours) on the Interstates, and cover 1000km or more.

On my most recent trip I decided to take subhighways only, and eat only at local restaurants (no chains), and drive only until it got dark out.

The result was spending a week in Nevada, driving just under 2,000km, and getting a definite feel for the flavor for the state (especially compared to my dip into nearby California). And I didn’t find it cost much more to stop in at “Chuck’s Burger” instead of McDonalds…in most cases I actually got more food (and higher quality) for my money.

Joe2569 Says:

August 22nd, 2008, 12:03 pm

I actually lived in a small town (for a couple years) where I was able to witness first hand the small downtown area shops close one by one as the Super Wal-mart took all of the business. You end up buying everything there, you use less gas and save time/money. However you are also subject to choosing between only what they offer, kinda big brother/corporate nightmarish.
We need small stores, but depending on the product I think that some of the big box stores are going to have safer standards (thats not to say that some small stores don’t). But a big box is going to have had more experience.

bob Says:

August 22nd, 2008, 12:22 pm

I have never been to an independent (Not-The-Man) gas station. In fact, I don’t think there are any within 20 miles of me. I reiterate what others have already said, the family owned biz is dead.

Matt Says:

August 22nd, 2008, 12:29 pm

I have to say this was a very interesting post but what I’m curious about is where all the mom and pop owners that own the chain stores fall in? A lot of the major corporations also sell franchises. These are still opperations that are run by a small business owner they’ve just taken advantage of the marketing dollars that a company like best western has invested in the brand.

I’ve been to a few best westerns in my life and although they all fall under the corporate umbrella a few of them have been privately owned operations (franchises) and they were run very differently. In some it was obvious that the people cared for the clients and went out of their way to make their stays enjoyable and in others it was more of the corporate just leave your credit card deposit and go to your room.

Although I agree with the premise that we ought to frequent these smaller businesses even if we loose out on a few dollars just for the service and history you don’t always get it there and sometimes the chains can give you great… exceptional service when you might not expect it.

sd Says:

August 22nd, 2008, 12:50 pm

I think a missing subtext here is the corporation as an unfair competitor. Sure, maybe BigBoxMart *can* sell goods cheaper because they can buy more of them and command a better price than Smalltown Goods down the street. That does allow people of lesser means to acquire more goods.

But it skips the question of what we have all that “stuff” for (c’mon — does anyone in the world really need a quesadilla maker?). The rise of our consumer culture (”you are what you own”) has raised personal debt and cut personal savings rates. I can’t tell you how many people I see who’d rather own a blingy mobile phone or fancy fingernails than medical insurance. Yet without increased sales, corporations become devalued.

And then there is what BigBoxMart does to its competitors and suppliers. The well-documented drive for continually-lower prices at large discount chains has caused many of their vendors to move production to lower-labor-cost countries or to stagnate the wages and benefits of those who work there. Big-box stores can dictate terms of supply, terms of sale, and even local wages; not always to the benefit of those of lesser means. So they can buy “designer” shoes for cheap. To what can people aspire to if all the jobs left are either low-paid clerical or service jobs or “professional” jobs?

And what of predatory corporations — the large coffee chain that can set up shop right across the street from a mom-and-pop that has been there for decades; the large airline that can stand to lose money on a route until they drive competitors out of the market; the large discount chain that closes all the grocery stores in town with their “low-touch” selection and price — and then starts raising prices once there’s no competition to keep ‘em honest?

Maybe corporations and large companies are necessary. But they don’t have to be evil. And they shouldn’t be rewarded by your continued patronage for being evil.

Balun Says:

August 22nd, 2008, 13:46 pm

Carlo, It looks like you did a “Feasting on Asphalt” tour. That is a fun way to travel.

Shelly Says:

August 22nd, 2008, 13:59 pm

I agree with this post to an extent. I refuse to shop at Walmart (partially for the way they destroy smaller businesses, partially for the way they treat their workers) and buy local whenever it’s possible (and reasonable). But at the same time, if a chain offers me better service and better quality, I’m not going to choose a mom and pop store just because it’s local. Take hotels/motels for example — the vast majority of locally owned ones around here (not including independent owners of a larger chain) are just unsanitary and gross. I’m not going to support local mediocrity. The one nice thing about chains is that you’re almost guaranteed a certain level of quality.

Personally, I can’t really shop at a local grocery store because, well, I live in the hometown of Wegmans. So in a way, Wegmans is local, even though they’re constantly expanding and growing. I do buy some produce from the public market, although Wegmans also buys a lot of its produce from local farmers. Wegmans is opening a larger store to replace my current one this weekend, and I couldn’t be happier, unlike some of my neighbors who try to cling to the old — the bigger store is going to have more of what I need in one place, while still employing the same workers that made the smaller one so friendly.

cirquo Says:

August 22nd, 2008, 14:47 pm

Southhold, New York on Long Island still personifies the mom and pop shops and restuarants of yester year. It is a small town indeed, you have to drive 3 miles to a store or gas station. It has it’s Starbucks nestled in between the other independent establishments, but that seems to be the extent of big business. The gas stations are independent as well, none of the names I ever heard of, ‘USA Gas’, ‘Patriot’, ‘Empire’. The nearest area populated with all the chain restaurants, big box stores is 14 miles away in Riverhead. I vacationed there for a week. It was definetly relaxing. Farmstands, vineyards, local shops, slow going. I have to admit, it was different and that is what made it fun, relaxing and enjoyable.
http://en.wikipedia.org/wiki/Southold,_New_York

tom dahm Says:

August 22nd, 2008, 14:57 pm

I just finished watching this flick, and its amazing…

I encourage everyone to watch this.

cirquo Says:

August 22nd, 2008, 15:00 pm

Oh, right, the prices are higher, about 10% more on average.

Jeff@MySuperChargedLife Says:

August 22nd, 2008, 15:09 pm

I love mom and pop shops as much as anybody, but for the sake of discussion let me toss another observation on the pile.

I have traveled around the US a little and while I love visiting local establishments to enjoy something unique. I also get comfort from knowing that I can walk into a chain restaurant in California and be served just about an identical meal as what I would get here at home.

Again, I agree with a lot of the points made in this article, but there are two sides to every argument.

Katie Says:

August 22nd, 2008, 15:26 pm

I think the most important concern when it comes to deciding where to spend your money is about the quality you receive for the money you pay. Some people shop based only on the short-term bottom line - they buy cheaper products of cheaper quality simply because the price is the lowest. Shopping at a mom-n-pop and paying an extra dollar for something just to show your support for them isn’t the best thing to do either. Getting a good quality for a good price is what a “good value” is. I shop for produce at the farmer’s market not only to buy locally and support the farmers (though that is important to me), but because the quality is so much higher. I would rather buy coffee from Starbucks if I know it will taste better than the independent coffee shop around the corner where the “baristas” have no training and the coffee has been sitting for 5 hours. But if I can go to the other independent shop where the beans are roasted fresh and the baristas are well-trained, then I would rather go there over Starbucks. When local businesses provide goods and services of equal or greater quality than the chain stores, I am happy to support them. But like many have said, sometimes the consistency factor of a big chain is more important. Being able to get the same BigMac anywhere in the country (or at this point, the world) with the same smiling customer service is what makes a company like McDonald’s successful. I think there is room in America for both of these things, as long as people value actual quality over saving a few dimes or touting their anti-Walmart ideals.

George Says:

August 22nd, 2008, 15:32 pm

In my hometown, and I’m sure elsewhere, corporate gas stations (i.e. Mobil, et al.) were family owned franchises. I remember an elementary school friend’s family owned the Mobil station near the town library and another friend’s family owned the Global Gas station near the highway. This is similar to how most Subway sandwich shops; they are franchises. Individual families can put a lot into a franchise, be it from a corporate brand.

Second, not all small businesses are equal. I agree with what many people say about service being very poor and quality not so good. Poor service and lack of quality, like blog content, will not a customer bring.

However, I do see a lot of independent shops that cater to modern buyers by offering superior service, excellent merchandise, pleasant interiors, and UNIQUE variety (not necessarily wide variety). This is not true in all cases (in the example of the flower shop being priced out by supermarkets); however, seeing this trend of markets coming in should have alerted the owners that it was time to close up shop, find another location, or form a partnership. But after 30 years of business… why would you want to suffer this these indignities. Change hurts.

Like so many things, new ways of doing business and buying are effecting the ways we live. Have you noticed that people now check Ebay at yard sales to see what things are worth? I, for one, buy less STUFF and pay more for SERVICES these days. As a result, I’m enjoying living my life more than concentrating on the things that fill it.

I enjoyed your article.

Stephen Martile Says:

August 22nd, 2008, 15:52 pm

To all SAVERS:

This post is right on the money :) The savers in their own right have a problem - they save!

Not only do the savers miss out on the grander experiences in life, they end up self-destructing their own wealth. How do I know? I used to be a SAVER….

I ate rice and pasta for an entire year so I could use my savings to buy a sportscar. At the time it seemed brilliant, but all I did was buy a LIABILITY - that liability crushed my plans to become rich.

SAVERs inherently have a detonator in their own subconscious that prevents them from building wealth.

THE CURE - savers have to spend money…

You can learn more here:

http://www.freedomeducation.ca/the-millionaire-mind-intensive/

maura Says:

August 22nd, 2008, 16:50 pm

Sadly we have lost. If globalization catches up so that international labor rates increase and make the bigbox goods expensive again, we may see some change, but I expect the bigboxes will find other ways to procure cheap labor as the previously underdeveloped nations make headway in developing their own economies. Thinking too much about that makes my mind go places I’d rather not. I’ll let “the man” do that - I’m sure he already has.

We have lost more in the US than a landscape for which to be nostalgic… We’ve lost diversity of available products, services and experiences; lost opportunity for independents to bring new products or ideas to the market (it’s too hard to compete with the big guys); lost our community-building downtown mainstreets to stripmalls and big box parking lots; and lost families’ opportunities to forge lives together running a family enterprise passed on through the generations. We’re losing cultural diversity, too, even as it streams into our country with an immigrant population more diverse than ever.

On the other hand, a benefit is that I can still pay a buck for a burger (even if it has texture like shoe leather). Don’t get me wrong, I very much appreciate the availability of goods in the US that those in other countries, even those with substantial means, don’t have access to where they live.

But personally, I am willing to pay a little more to try to hold on to the few remains of what we’ve lost, even knowing that the march of progress will eventually overtake it and replace it with something else.

Meagan Says:

August 22nd, 2008, 17:03 pm

This is something I thought about when I lived in New York City (2004-2006). I was surprised by the number of chains taking over in what is supposed to be one of our most unique and progressive cities.

sarah Says:

August 22nd, 2008, 17:03 pm

The thing that frightens me the most about loosing this element of america, is that we are not just being bombarded with corporate America, we are essentially choosing corporate America as a partner. “We” as in it seems the majority of America, seem to want this manical face paced lifestyle. Walmart and all the other corporate giants out there have become what they are today because of the demands of our society. Everything is tailored around accessibility, getting somewhere faster, getting something faster. Everthing is instant gratification without any thought to it…

It is disheartening to know that America has forgotten how to stop and just smell the flowers . :)

PS
I have just started reading your blog and it is very enlightening, thanks!

matthijs Says:

August 22nd, 2008, 17:24 pm

Just saw the film. Somewhat of a waste of time. Most of it is about how he can’t find “independent gas” anywhere (as if there is such a thing - even a mom and pop gas station sells gas that’s been refined by a big corp!) which lead my wife and me to believe independent motels and independent eateries were actually not hard to find at all (if they were, he’d have shown how hard it was)

Robyn Says:

August 22nd, 2008, 18:04 pm

Prices and time. At Walmart you can buy everything from electronics to food - it’s one stop as opposed to going from one small store to another. In the days of my youth, mothers stayed home and while you were at school, they spent part of the day cleaning and part of the day doing errands, going from store to store. There are very few “downtowns” of this sort anymore and the stay at home mother is a rarity because economics doesn’t allow it.

We cannot go back, but people are finding ways to cope. There are many small biz entrepreneurs online and many of them have the sort of relationship with their customers that the mom and pop stores used to have. I can’t mythologize those little stores, though, because the era in which I grew up were full of them and they were a lot less friendly to kids that one would think. You can spend all day at Borders reading, but you couldn’t spend 5 minutes looking at the comics in a small store “Hey, kid - buy it or get out.”

I live in Santa Cruz county in California and the people here are particular about buying from independents. I often went to buy from the local farmers market or downtown to buy from local merchants. Since I’ve been unemployed, though, I’ve had to stop going downtown. The small merchants are too expensive for me. In fact, the whole county has one of the highest costs of living in the state, if not the country, and our working poor suffer acutely.

I don’t know how we got on this trolley ride, but we need to figure a way to change things. And as someone pointed out, it will help if we are more mindful about the reasons for our choices.

I continue to buy from the farmers’ market - the food is fresher, the prices comparable to supermarkets, and my biggest investment is time.

Briana Says:

August 22nd, 2008, 21:08 pm

Just to play devil’s advocate here, let’s not forget that all the major chain stores today were once mom and pop stores themselves many years ago–WalMart, Microsoft, McDonald’s, and many more–that did extremely well due to the market economy of the US, and which wouldn’t have been possible in most other countries. Everyone comes here for the “American Dream”, and when it happens to someone else then suddenly it’s a bad thing? At least I have a choice whether or not I want to shop at WalMart, and until someone takes that right away from me I’m not going to complain too loudly.

Robert Says:

August 22nd, 2008, 21:08 pm

My family and I were traveling through Kansas once and stopped at a small town to spend the night. We had two choices of hotels: a local hotel and a Best Western. The first time in that town, we chose the mom and pop place.

The wallpaper was peeling, the place was smelly, I found a roach under the bed, and the shower was full of algae. Needless to say, we had a comfortable stay at the Best Western on the trip back.

Are M&P’s better? Only in some cases. In the small town where I come from, the only grocer within 30 miles is a M&P. They do a great job and give service that Wal-Mart can only dream of, but they can’t hold a candle to the price and selection that Wal-Mart and its ilk give.

Now Porter’s is definitely nice, but if they built a Wal-Mart next to it, guess which one I’d go to? The place with the cheaper products — food is food, no matter where you buy it from. Some of us have got kids to feed and not that much time, or money, to nit-pick through every single M&P for what we need.

P.S.
If I want culture, I go to a museum.

tom dahm Says:

August 22nd, 2008, 22:18 pm

To further my prior comment, I’m one of those ‘young people’ who run off as soon as possible, to find themselves.
Driving across country, I stopped at MANY of those chain restaurants, gas stations, and motels/hotels. I recall one hotel very fervidly. See, I’m from the suburbs of Chicago, the north shore more specifically. I was BORN into McDonalds, Amoco, and Hilton or Marriott. Anyway, after making my way across the country into California, I naturally went to one of those mega expensive Hollywood hotels. (I was IN Hollywood after all) and decided the ‘Shrek Suite’ sounded nice. Close to $400.00 for one night. The previous weeks spent out on the road had showed me the beautiful independent side of this country on more than one occasion. I relished in its freedom and culture. I enjoyed it’s people, and it’s food. Yet, still, I had to check this thing out. The room looked like the inside of a tree, and the ‘wood’ was plastic-like. While aesthetically pleasing, it was just a room. No feeling of history, no warm vibe. Just that plain, crappy hotel feel you get anywhere. Then why did I choose this? After the experience of it, I would NEVER do it again. Not only did I waste my money on a dressed up room, I also left that feeling of being connected to real people, with real history, and a honest, earnest good nature. A few years later I set out to backpack the PCT. Same route, different ways, different means. I chose a bus line for the bulk of my trip out west, and TOOK MY TIME. The experiences and the people met along the way, were unlike ANY other. They have very much shaped me into the person I have grown into. To summarize what I saying, the directions we take, the people and the shops we come across, offer a unique vision of this country. To put them aside simply for the convenience of ‘get it now’ chain operation, hurts the spirit of our peoples and their cultures. To do so teeters on the border of unethical, and devoid of a sense of comradeship. At least, that’s the way I see it.

http://tomdahm.blogspot.com

Chris Says:

August 22nd, 2008, 22:35 pm

This same argument can be made that America should take the moral high ground when it comes to international affairs and that America should make sure that every one is treated fairly and equally.

These sentiments could all be possible if every single American is willing to give up thier big cars, relatively cheap gas compare to the rest of the world, affordable laptops and so on and so forth.

I too longed for the days of the mom and pop stores but unfortunately, our insatiable appetite for “cheap” quality goods cannot be tamed.

Susan Says:

August 23rd, 2008, 7:10 am

Buy green, buy fair, buy local, buy used, buy less. Works for me.

Lily Says:

August 23rd, 2008, 8:17 am

It’s about malls and chain stores everywhere anyway. Milan, the very centre, near the Dome: 3 Benetton megastores. 2 MacDonalds. You can walk from one to the other.

What I do: I do my big grocery shopping at the supermarket or mall but I support the shops and products which are really worth i