The Wages Of Parasites

Guest Post by The Zman

According to this story in the Wall Street Journal, Sears is on the verge of finally going out of business. For people under the age of forty, this is a meaningless event, as Sears has not been a part of the public consciousness for decades. For those old enough to remember, the early 1990’s was the last time Sears was an anchor store at malls and shopping centers. I think the last time I had a reason to shop at Sears was at the old Natick Mall in the 1990’s. I think I bought a kitchen item, but I no longer recall exactly.

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The conventional telling of these stories says that the big retail stores were killed by some combination of Amazon and the internet. That’s mostly just myth-making as companies like Sears were struggling when Amazon was still just a river in Brazil. The big box store, as they came to be called, was always a bad idea that started to show signs of weakness in the 80’s. The logic of this type of retail is a race to the bottom, where margins are maintained by stripping out the value that is implicit in the local retail store concept.

Think of it this way. The local retailer does more than sell stuff. In practice, he stocks the things popular with his community and offers customer service to help his neighbors get the best product for their needs. He’s also going to sponsor the local little league teams and participate in the community. Big retail takes the social capital and the customer service and turns that into a quick profit for the chain store, by cutting prices at the retail side and purchasing power on the supply side. It’s a form of economic piracy.

This model works fine until all of the local competition is gone. At that point it is a battle of soulless wholesalers operating out of warehouse style facilities. The only competition between a Sears and a K-Mart, another defunct chain, was price and location. One thing that is certain about a race to the bottom is that everyone eventually reaches the finish line and for big retail that has meant bankruptcy. You see this with Amazon. Their retailing arm is the marketing expense for their media and technology services now.

This is why conservatives used to be skeptical of capitalism. They correctly saw the reality of large scale retail. It was not that the big retailer was better at selling product or provided a better service. In fact, it has always been the obvious. If you go to your local Home Depot, for example, you are unlikely to get any help from the staff, unless you tackle one of them in the aisle. Even then, the quality of service is so poor, you are better off not asking for help. Big retail turns customer service into a net negative.

Big retail operates as a parasite through false economy. It’s a form of cost shifting, where the loss of social capital and customer service is pushed into the distance, while the cheap prices are in the present. The Old Right understood the corrosive nature of this form of retail and opposed it. Today, everyone laments the loss of local retail and the town shopping district. We’re told it is the result of Amazon being a better choice, but in reality the cause is the willingness of our leaders to auction off our social capital.

Another example of this is the local industrial supply store. Electrical wholesale, welding supplies, HVAC wholesalers and other business that served the trades used to be locally owned family businesses. They were never wildly profitable, but they provided a nice living as a family business. Fred’s Welding Supply would sponsor a little league team, while Fred participated in the community and sent his kids to the local schools. Sometimes one guy would own a couple of stores if his town or city was big enough to support it.

Today, these businesses have been bought up by investment firms powered by credit money from investors. An investment firm gets set up and they bankroll one bigger player as he buys up all of the competitors. The “economies of scale” are that the owners are removed, the accounting and sales staff is centralized and the social capital is carted off to the investors as profit. The customers may get a small break in price, but usually the only thing they notice is the staff now treat them like strangers, rather than neighbors.

Libertarians and “conservatives” will read this and reflexively start chirping about free markets and invisible hands, but there is a reason they are now a punchline. That’s because these are ideologies, if you want to be generous and elevate them to ideologies, that make all the same assumptions about humanity as the Marxists. That is, they see man as the ultimate consumer, a beast that devours his environment, in the same way a plague of locusts wipes out a field. Whittaker Chambers explained this 60 years ago.

Tragedy is bypassed by the pursuit of happiness. Tragedy is henceforth pointless. Henceforth man’s fate, without God, is up to him, and to him alone. His happiness, in strict materialist terms, lies with his own workaday hands and ingenious brain. His happiness becomes, in Miss Rand’s words, “the moral purpose of his life.” Here occurs a little rub whose effects are just as observable in a free enterprise system, which is in practice materialist (whatever else it claims or supposes itself to be), as they would be under an atheist Socialism, if one were ever to deliver that material abundance that all promise. The rub is that the pursuit of happiness, as an end in itself, tends automatically, and widely, to be replaced by the pursuit of pleasure, with a consequent general softening of the fibers of will, intelligence, spirit. No doubt, Miss Rand has brooded upon that little rub. Hence, in part, I presume, her insistence on “man as a heroic being” “with productive achievement as his noblest activity.” For, if Man’s “heroism” (some will prefer to say: “human dignity”) no longer derives from God, or is not a function of that godless integrity which was a root of Nietzsche’s anguish, then Man becomes merely the most consuming of animals, with glut as the condition of his happiness and its replenishment his foremost activity. So Randian Man, at least in his ruling caste, has to be held “heroic” in order not to be beastly. And this, of course, suits the author’s economics and the politics that must arise from them.

A life with no other purpose than to work and consume is actually lower than beastly, because the beast in the field only eats to live. It does not live to eat. Like all living things, it lives to make more copies of itself. For man, possessed of a self-awareness and the capacity to remake his environment, the purpose of life expands to the celebration of life by not only reproducing but leaving a cultural legacy for the next generation. The point of life is for old men to plant trees in whose shade they will never stand.

The auctioning off of our social capital has corresponded with the startling spike in suicide rates. Cosmopolitan globalism and the transactional consumerism that drives it, strips people of their humanity. Like drug addicts, they no longer have the capacity to experience the normal pleasures. The heroin addict is always faced with the choice. Give up the junk and became whole again or take the easy way out. That’s what faces the people of the modern West. The choice is revolt against modernity or amuse ourselves to death.

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31 Comments
Trapped in Portlandia
Trapped in Portlandia
June 8, 2018 8:32 pm

Zman seems to be channeling Kunstler today.

Why Retire When I Can Work Myself To Death For An Extra Buck-Fiddy
Why Retire When I Can Work Myself To Death For An Extra Buck-Fiddy
June 8, 2018 8:50 pm

The point of life is for old men to plant trees in whose shade they will never stand.

I really like this. I’m doing this right now. Four years ago a forest fire burned down 60% of the trees on my property. Four months later a massive windstorm knocked down 25% more. I’ve been planting and rehabbing the land but it will never look the same in my lifetime. And I’m ok with that because my family will live to see it lush and forest like again. I just enjoy watching the little trees grow…

Capn Mike
Capn Mike

i read that line out loud just now to my GF. GREAT essay. I have some disagreements, but what a great place to start a discussion. Well done, Zman.

TampaRed
TampaRed

it is a good line but it is not a zman original–

gilberts
gilberts

That’s nice to read. Sometimes, there’s something profound in the little things.

MadMike
MadMike

Good luck with that, Why Retire.
Yeah, they will see it, until someone in the family decides to chuck it all and sell the place.
I’ve seen it happen over and over, and it’s how, in 1975, we got the 125 acre property we live on.
Since 1916, three families have owned it.
You can leave them the land, but you can’t guarantee you will leave them the dream.

subwo
subwo
  MadMike
June 10, 2018 12:46 pm

I remember this reading Pearl S. Buck’s “The Good Earth”

James
James
June 8, 2018 9:08 pm

Admin.,the Natick Mall?!I grew up in Dover,used to shop there till about the early 90’s when mall tax prices and Craftsman tools though guaranteed for life started to be made of lower quality materials and made in China,still have some original Craftsman ratchets that I treat with care as know if turned in for new one will be turning that one in yearly!I used to as a kid go to Natick mall for the ticketmaster on second floor for a lot of me concerts!

I will say either Lowes or Depot occasionally in plumbing dept. have retired plumbers who are a gold mine to get me thru weird issues/jobs,get invaluable advice and perhaps a couple bucks in parts,so far they have been right every time what to do and how to test for said issues.

TampaRed
TampaRed
  James
June 8, 2018 10:34 pm

lowes is now selling craftsman tools,about the only positive lowes has–

Anonymous
Anonymous
  TampaRed
June 9, 2018 8:38 am

As of late, I’ve found most of the Harbor Freight stuff to be as good as most Craftsman tools, they’ve come a long way over the past few years and are quite a bit lower in cost as well.

SaamiJim
SaamiJim
  James
June 9, 2018 6:09 am

James,
The old craftsman wrenches were not as thick and bulky either. The old ones “came to hand” more readily.
No doubt the newer ones had to be made with more material on account of the poor quality of metal used.

Westcoastdeplorable
Westcoastdeplorable
June 8, 2018 9:31 pm

There are still two malls here in SoCal that have Sears as anchors, but I’ll be surprised if they last another year.
Good point about the connection between suicides and today’s diminishing social capital. I think the pendulum has swung too far in the liberal direction. Trumps election was the sign that it’s now swinging back toward sanity (I hope!).

JR Wirth
JR Wirth
June 8, 2018 9:37 pm

The Free market is not necessarily Capitalism, as Capitalism has as its goal monopoly and the free market has as its goal, choice.

The problem is not the big box store, but consumer tastes. There was a time when people only wanted a few nice things and good service. Garages actually were capable of sheltering cars and not some glorified storage unit with freezers full of frost burned frozen ravioli.

Today, because people are now devalued, or have devalued themselves, every cheap, Chinese piece of shit is wedged into every room, the plastics slowly gassing off. We’ve become a nation of diabetic hoarders taking insulin along with our putrid electric green margarita mix. The big box store didn’t do this to us, we did it to ourselves. Some of the worst offenders are practicing Christians who go to the Wednesday bible study. Praise Jesus and pass the Kirkland potato chips with the Himalayan sea salt.

People now put up with poor quality consumer goods, being served by a fat, purple haired, ethnically ambiguous woman in stretch pants, because that’s what we’ve become as a country. A disgusting cesspool of fat, ugly people with poor genes and no class. I pray for some malthusian style cleansing of this shit show.

The problem is that this country has become a “big box” of dog shit people who need to be taken to the dump.

Dutchman
Dutchman
June 8, 2018 11:18 pm

I’m from the East Coast – 1960 – Sears was a real low end – not cool store. We used to call it a ‘farmer store’. In the MidWest – it may have been more.

Amazon is becoming like Sears – sells everything under the sun – just the catalog is online. History will repeat its self.

gilberts
gilberts
June 8, 2018 11:45 pm

You know, it’s funny how some people think stores matter. I grew up with Sears, KMart, Lowes, Hechingers, Belks, Penny’s, etc. I don’t think I miss them. I shopped at Sears now and then, but I never really thought they were very good. They sold a little smattering of everything, but their prices were high to me, their products not so good, and they just don’t make much sense as a place to shop. If I want tools, I go to a hardware store, and since most of those are gone, I go to Home Despot. If I want clothes, I ain’t going to Sears. Their selection sucks and their brands suck and their prices suck. All I ever saw in Sears in VA were illegals. Kmart used to be kind of the place to shop when I was a kid, but maaaan that place looks like shit now. There’s a great channel on youtub that follows the demise of the big corporate behemoths- Company Man.

The funny part is, aside from some of the glitzy(?) tech box stores, like hhgregg and bestbuy, practically all of them look like shit now. Walmart is like a parade of human debris. Target is pretty good, for the most part. All the rest look like shit inside and so do their customers. Been to a Petsmart lately? They look like a thriftstore these days.
As these fade away, fear not, someone will find a way to retail the things you want to you.
Oh, and I gotta laugh at Home Despot. Pretty much every time I go to one, if I need help, and I ask someone, they’re likely to be a complete toolbag who wouldn’t know a hammer from a fork. I asked a guy in the checkout shack in the outside garden section a question once and his response was, “If it’s outside this shack, I don’t know anything about it. They don’t let me leave this shack ever.”

JR Wirth
JR Wirth
  gilberts
June 9, 2018 12:08 am

Keep in mind, that all of this has been the doing of an artificially low interest rate environment since the late 1980’s. Our economy is fundamentally broken and is a bomb waiting to explode.

Mad as Hell
Mad as Hell
  JR Wirth
June 9, 2018 1:01 pm

“Today, these businesses have been bought up by investment firms powered by credit money from investors. An investment firm gets set up and they bankroll one bigger player as he buys up all of the competitors. The “economies of scale” are that the owners are removed, the accounting and sales staff is centralized and the social capital is carted off to the investors as profit.”
Exactly. The “credit money” is the problem. Capitalism, without the “aid” of the central bank printing press, would never have allowed this to happen. It simply would not be economical. See, in a normal monetary system, governed by real supply and demand, investors have to use their own money, money that they can lose, and that they had to actually earn. In those circumstances, investors actually would require a decent return on their investment, exceeding the risk free yield of a bond, or other instrument. However, in a artificial environment, of sometimes negative interest rates, with actual inflation running in the double digits, the investor is forced to ever riskier yield just to keep up with inflation, and ever smaller yield that is even available. Add that to certain privileged banksters having access to Fed money, and you have the above.
So many perversions today, it is hardly even possible to remember what an actual, functional economy even looks like. In a real functional economy, a guy like Ed Lampert would not even be in charge of a retail operation like Sears. He is a HEDGE FUND MANAGER, not a retailer. As is most of the other CEO’s running / asset stripping these former retail operations. They make more stripping, and larding them up with debt, than actually selling anything. Amazon, likewise. Bezo’s is a Billionaire (one of the richest now) by selling the IDEA of Amazon to Wall Street, rather than selling products in his online retail catalog. Think about it.
The modern company does make money selling products. The modern company makes money selling a fantasy, or story to investors. The selling of products is simply part of the mechanism to sell the idea.

fobjob
fobjob
June 8, 2018 11:46 pm

Sears used to be the ‘big store’ in Salt Lake. Then people caught on to the Die Hard battery scam, where it was designed to fail six months before the warranty expired; they stopped stocking every plumbing part known to man and stocking only the parts that moved off the shelf…(the unwritten law of plumbing parts:”you can’t get there from here”….) the employees went from looking happy to an expression of:”Please kill me now”….death by stupidity, modern business school dogma, and a violation of the basic real world business rule: “You can’t stay in business by driving away your customers with a club.”
The only thing that still mystifies me is: why did it take them so long to fail?

Maggie
Maggie
  fobjob
June 9, 2018 7:08 am

It is an interesting topic, the demise of the family-owned chain store, but I live on a piece of ground ninety miles from nowhere and the closest Sears store might as well be on the moon, as far as I’m concerned.

However, up at the “junction” (not Petticoat, but close) where “Butch’s Block” has a nice little selection of a variety of items, off brand and some dented and scratched, I can find enough to get through until the next trip to “town.”

How long until some Dollar General scout notices there is a small business thriving in the hills? They broke ground this spring.

Assholes can’t leave any of us alone.

Daniel
Daniel
June 9, 2018 1:09 am

As I see it:
Consumerism should not be confused with capitalism. The latter is just nature given a socio-economic label; it is competition and cooperation for resources. It is nature and nothing more.
The former is a consequence of centralization which is central bank interference (through rate manipulation) and government regulation (particularly through corporate lobbying). Without those two, consumerism wouldn’t be a thing. Without financialization as a consequence of cheap credit there would never have been ‘investors’ to buyout Fred and his competition (also monopolies do not exist/form in nature).
When you combine the now-ending miracle that was oil with artificially cheap credit, you get resource misallocation on a civilizational/planetary scale. Strip mining the planet for resources to maintain an ever-falling stadard of living seems like a pretty standard outcome.
I see young marxists in particular spout consumerism as ‘late-stage’ capitalism. So here’s my thought experiment: compare the year 2018 vs. the year 1900. Which is more “capitalist?” It is no coincidence the age of consumerism has occured in the age of big business sponsored by big government and all “payed” for through the golden age of central banking.
Did any of that make sense?

Captain Willard
Captain Willard
  Daniel
June 9, 2018 7:51 am

Yes, that was excellent. As usual, Zman blames Libertarian ideology when his ire should be focused on crony capitalism and Central banking. Amazon held a sales-tax exemption for years without which it never would have gotten off the ground. Cheap credit has fueled its astronomical stock valuation and resulting low cost of capital.

TampaRed
TampaRed
  Daniel
June 9, 2018 9:33 am

Daniel–
“When you combine the now-ending miracle that was oil with artificially cheap credit, you get resource misallocation on a civilizational/planetary scale. Strip mining the planet for resources to maintain an ever-falling stadard of living seems like a pretty standard outcome.
I see young marxists in particular spout consumerism as ‘late-stage’ capitalism. So here’s my thought experiment: compare the year 2018 vs. the year 1900. Which is more “capitalist?” It is no coincidence the age of consumerism has occured in the age of big business sponsored by big government and all “payed” for through the golden age of central banking.
Did any of that make sense?”

not only does it make sense,it is something that you could turn into a good article that would probably be picked up by a good # of sites–
go for it & defend the free enterprise system–

middle-aged mad gnome
middle-aged mad gnome
June 9, 2018 6:21 am

For my part, I think big box stores are failing is because they lost all sense of customer service. Translation: the shopping experience because unpleasant. In a free market economy people will insist that spending their hard-earned money be a pleasant experience. Make it unpleasant, destroy your business. Are you listening, Walmart? I respectfully reject any idea that “social capital” is anything other than moralizing about how business should spend its money. And as big box stores fail, competitors arise to capture those markets. It’s a process that allows the weak to die and the strong to thrive. It works until government interjects itself and quashes competition.

22winmag - when you ask someone which floor they'd like, and they respond with "ladies lingerie"- they're referencing the AEROSMITH SONG!!!
22winmag - when you ask someone which floor they'd like, and they respond with "ladies lingerie"- they're referencing the AEROSMITH SONG!!!
June 9, 2018 7:31 am

Screw Sears.

Monkey Ward’s was the best!

Coalclinker
Coalclinker
June 9, 2018 8:47 am

Sears was founded as a catalog mail order company only. Their stores were more or less receiving depots where you picked up what you ordered through the mail out of the famous Sears & Roebuck Catalog. Their wares were good quality American made products made by major American companies rebadged with the Sears name. The beginning of their End happened in 1958 when they told the White Sewing Machine Company to go fuck off and they started selling Japanese sewing machines (White went out of business by around 1962 as a result of this). By the late 1960’s they were building big stores that each kept in stock lower quality imported goods they hoped the customer would see and buy, and downplayed Sears Catalog business, which they finally killed off in 1993.
I don’t see how it took 60 years for Sears to die but they were a huge company that was killed by a thousand cuts. If they had stayed with their original operations organization they would have been a giant e-commerce company of today selling American made products. It seems that their story is the typical American story of the commoditization of their products to the lowest quality denominator.
The stocking of foreign goods by retailers is one of the factors in the death of American industry. Since the people no longer make the good salaries they used to make in the factories, they no longer can afford the junk the retailers stock, and now it’s Big Box’s turn to die.

prusmc
prusmc
  Coalclinker
June 9, 2018 12:59 pm

Grew up with the window shopping the “wish book tools, guns and fishing tackle. Never had the money as a kid to buy these treasures because my Mom spent the money on school clothes, work clothes and housewares.
Later when I was first married shopped for a vacume cleaner. Amazed by the knowledge and helpfulness of the salesman and all employees at Sears. Sadly, no place seems to employ people who know or care about what they are doing.

Overthecliff
Overthecliff
June 9, 2018 10:07 am

Sears died because of management. Just as GM, Chrysler,JCPenneyand Packard Motors. Management looted the wealth and stole shareholders equity until there was nothing left. The only defense the shareholders have is to bail out while the altitude is enough for the chute to open.

Watch what is happening with your investments.

Jake
Jake
  Overthecliff
June 9, 2018 10:46 am

They will hit the ground before their chutes open. Last time I saw SHLD was less than $3 per share. They spun off Sears Canada and Land’s End. I see Craftsman is apparently independent and ACE hardware and maybe even Wally World are selling Craftsman along with other places I can’t recall where I have seen their stuff.
Menard’s is a good lumber yard+big box operation. They are privately held with no shareholders or quarterly goals they “have to hit” for Bloomberg and CNBC, Blackrock, Dalio etc.

TampaRed
TampaRed
  Jake
June 9, 2018 11:19 am

jake,
i had posted earlier that lowes is selling craftsman tools,but i had forgotten that ace is also selling them–
know what else we both forgot?sears sold craftsman tools several years ago — i believe stanley bought them but i could be wrong–
it will be interesting to see if anyone takes over their lawn/garden tools–

anarchyst
anarchyst
  TampaRed
June 19, 2018 10:25 am

Ridgid tools used to be the manufacturer of Craftsman tools until Sears took the Craftsman brand “offshore”. Although the warranty is still there it is obvious that the quality that used to be a part of the Craftsman brand is not.
Ridgid produces its own line of tools which are still of good quality.

robert h siddell jr
robert h siddell jr
June 9, 2018 1:34 pm

I think IRS minority subsidized wages and Affirmative African hiring lowered quality and drove away customers. Lower IQ management damages everything. Yesterday I asked a clerk sitting on the floor at Walmart to replace the battery in my watch; without getting up she said “the Manager said we don’t have to do that anymore”. Somebody will (Target?) and I’ll shop there.