Starbucks closing 600 stores- down with big coffee!
July 19th 2008 14:31
Why are people so happy about this? I've seen numerous people rejoicing in the announcement earlier this month that Starbucks is closing 600 stores. People are actually saying "so what?" They are evil capitalists who own a mega corporation and cater to rich yuppies - right?
I would beg anyone who asks these questions to consider a few things.
First, and most obvious, is the number of people who will lose jobs. Starbucks claims that they are going to attempt to place the employees into other locations, but it seems nearly impossible that all of these people will fit into other stores. Even for the ones they can incorporate into other locations, that involves a potentially commuting further to work and burning more gas. I would also remind you that this move comes on the heels of February's corporate layoff. People on all levels are losing their jobs.
For those that want to compare Starbucks to places like Walmart, I would direct you to check out Starbucks employee benefit package. They are one of the few companies that offer full benefits for part-time employees. On top of their store discount, they also receive a free pound of coffee every week. Thats a ton of coffee.
What does it mean when coffee shops close? That expendible income of your average joe or jane has gone down. Contrary to popular belief, not only yuppies and rich people drink coffee at Starbucks. In my slightly more financially comfortable days, I drank Starbucks or other local coffee shop coffee several times a week. Since those comfortable days have been gone, I've chosen to brew my own. I'm not the only middle class citizen who has done the same. We aren't seeing the effects of rich people choosing not to drink, we are seeing the effect of middle class people losing expendible income.
The implications of such a notion are wide. I have a theory that seems logical enough to me. Economic crises like the one the USA has been going through only truly impact the middle class. The poor who already don't have anything aren't affected- if you are homeless without a job, how is the stock market going to matter a lick to your situation. The super rich aren't affected- if you have enough money to have a 50,000 sq ft mansion in cash, you aren't going to feel a significant difference with the slump. The middle class- the mortgage holders- they are the ones that struggle in times like this. The difference between upper middle class and lower middle class becomes blatently obvious as the difference between those that can keep their heads above water and those that lose their house.
Whether you are low or upper, the struggle to keep our house or feed our family leaves us without a Mint Mocha Frappuccino.
I would beg anyone who asks these questions to consider a few things.
First, and most obvious, is the number of people who will lose jobs. Starbucks claims that they are going to attempt to place the employees into other locations, but it seems nearly impossible that all of these people will fit into other stores. Even for the ones they can incorporate into other locations, that involves a potentially commuting further to work and burning more gas. I would also remind you that this move comes on the heels of February's corporate layoff. People on all levels are losing their jobs.
For those that want to compare Starbucks to places like Walmart, I would direct you to check out Starbucks employee benefit package. They are one of the few companies that offer full benefits for part-time employees. On top of their store discount, they also receive a free pound of coffee every week. Thats a ton of coffee.
What does it mean when coffee shops close? That expendible income of your average joe or jane has gone down. Contrary to popular belief, not only yuppies and rich people drink coffee at Starbucks. In my slightly more financially comfortable days, I drank Starbucks or other local coffee shop coffee several times a week. Since those comfortable days have been gone, I've chosen to brew my own. I'm not the only middle class citizen who has done the same. We aren't seeing the effects of rich people choosing not to drink, we are seeing the effect of middle class people losing expendible income.
The implications of such a notion are wide. I have a theory that seems logical enough to me. Economic crises like the one the USA has been going through only truly impact the middle class. The poor who already don't have anything aren't affected- if you are homeless without a job, how is the stock market going to matter a lick to your situation. The super rich aren't affected- if you have enough money to have a 50,000 sq ft mansion in cash, you aren't going to feel a significant difference with the slump. The middle class- the mortgage holders- they are the ones that struggle in times like this. The difference between upper middle class and lower middle class becomes blatently obvious as the difference between those that can keep their heads above water and those that lose their house.
Whether you are low or upper, the struggle to keep our house or feed our family leaves us without a Mint Mocha Frappuccino.
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Comment by Morgan Bell
Deep Pencil
Current Business News
Movie Train
Artist Quirk
however i will just add a couple of things from a low income point of view:
it may sound awful but i get really tired of hearing middle income people complaining about losing their mortgages, theres a whole section of the community that are never in a position to even hold a mortgage
i mostly feel sorry for the people who can no longer afford to rent or buy their groceries or pay bus fare or medical bills . . .
sure, defaulting on a loan and no longer owning a house would be devastating, but many of those people who are in strife now knowingly stretched their finances to the limit to buy the biggest most expensive house they could . . . property is a risk and had the market swung the other way those people would be millionaires
i do feel sorry for anyone losing their job due to workplace closures, it doesnt matter which class you are from, if you lose your income you lose your ability to maintain your life
just my two cents
great article!
Comment by Josie
Waxing Political
Unique Parent
I agree that everyone has it tough. The perspective I come from is obviously from the struggling middle class.
Everyone has a different story with mortgages. In our case, our mortgage is the same cost as rent in the area thanks to some smart moves a few years back with our first house and now the one we are in. We got fixer-uppers and put alot of sweat and tears into both the houses that we've owned. We bought small so as not to stretch too far- all 3 kids share a room. If we can't pay our mortgage right now, we can't afford to live anywhere. Thats the sad thing with us. So far we are barely squeaking by, but much longer and we have some serious problems.
I agree with you that I don't feel as bad for people who have stretched way beyond their means. At the time of our purchases, we really hadn't. It is just literally over the past year that things have gotten difficult.
Comment by Morgan Bell
Deep Pencil
Current Business News
Movie Train
Artist Quirk
that is tough if you cant rent for less than your mortgage payment, that is when it gets really scary
just as an example, double income proffessional couple here in Australia who have bought houses in cities like Sydney are making repayment of over $1000 a week (say $1200 per week on an $800K property) and rent in the same area is generally under $300 per week
hang in there!