August is over and there’s more bad news in downtown Minneapolis.
Bergstrom Jewelers is leaving downtown Minneapolis after 87 years in business there. Their new location in St. Louis Park promises to be less expensive to patrons in terms of time, money, and headache.
Meanwhile, Block E has been dealt another severe blow in the wake of Game Works’ closure earlier this year. Downtown Hooters has joined Game Works in closing its doors, a development making downtown a little bit darker amid the abundance of vacant storefronts already conspicuously populating many areas there. Meanwhile, landlords, themselves trying to stay afloat after losing tenants, will surely pursue alternatives to make up for the losses, alternatives that likely include rent increases, thus adding another link to a long chain of economic destruction.
When a business closes, it does so because of many diverse yet related factors that conspire to bring about said business’ downfall. On the surface, a business closes because it does not earn enough money to pay its bills. But why did a fallen business not make enough money?
A business cannot make enough money if they charge too much for something patrons do not think is worth the price or cannot afford. People cannot afford to buy because their jobs do not pay enough o keep up with escalating costs with which, ironically enough, the business also tries to keep up.
The worst part of this destructive economic equation is that escalating costs never had to happen. Escalating costs can be explained mostly by the inflationary monetary policies of the government-enabled Federal Reserve System. Their practice of creating more money out of nowhere only makes things more expensive in ways with which people cannot begin to keep pace. This falling behind dynamic has been responsible for many an economic calamity through the years and affects us even now.
Clearly, every economic problem can be traced to the top.