Sunday, February 13, 2011

Borders Bookstores Declares Bankruptcy...This is GOOD news, right? Schumpeter lives...

Another victim of Creative Destruction---the "darkside" of progress that brings us products in new and innovative ways.  More and more books are bought/sold through E-readers.  Is this an example of the supply-side responding to the demand-side, or vice-versa?  It is quite amazing how markets emerge with no single entity guiding it. However, it is necessary to acknowledge the costs associated with this progress. It won't change the inertia towards technology use in the book industry, but people will lose jobs in the  "brick and mortar" stores. Fewer workers in bookstores, fewer stores need to be built, fewer construction jobs to build the stores, fewer other stores that depend on a Borders as their anchor store, which means even fewer construction jobs as well as retail jobs....Can you think of any other "costs" (although some of these costs can be seen as benefits too).  Or maybe where I am going wrong in my analysis?...Don't let it hurt your brain!

Borders bookseller faces bankruptcy

""Faced with stiff competition from online book retailers like Amazon, plus the proliferation of e-books designed for devices like the Amazon Kindle and Apple’s iPad, Borders faces bankruptcy...""
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