Creative destruction: Thousands of traditional retailers close as consumers switch to online retailers like Amazon

And that means we will continue to see more creative destruction in the retail sector from Hurricane Joseph Schumpeter as brick-and-mortar retailers continue to close, probably along with many of the malls where those retailers were once located. When an Amazon Prime membership now offers you 2-hour, same day or next day free delivery for millions of items at extremely competitive prices, the combination of selection, price, and convenience from Amazon makes it irresistibly attractive to most of us consumers, and we get addicted to it like “retail crack cocaine”! Additionally, an Amazon Prime membership for $99 per year now offers not just free unlimited delivery, but also includes Prime Music (for streaming two million songs) and Amazon Video (for streaming movies and TV shows), so you can see why 20% of consumers are now Prime members. And you can understand why millions of consumers are shopping online through Amazon instead of patronizing traditional retailers.

Our take: When what we know collapses, people always panic.  However, ‘Creative Destruction’ leads to better living conditions for everyone. Think about all the time people are saving by shopping on-line, time that they can put toward something else that betters their lives.  Don’t fear progress and automation, position yourself to take advantage of the new economy.

Read the full article by Mark Perry at AEI.org

My Childhood as a Renegade Entrepreneur

As children, we are born capitalists. We have no deep philosophies or moralities but we organize ourselves naturally around mutual exchange because we recognize quickly that life gets better if we do.

We trade cards, toys, our lunches, and other things we value for the things our friends value and rarely do we have trouble working out disputes. We don’t do it because we care consciously about free markets — we don’t even know the concept. Nor do we need to. Markets don’t require everyone to know their importance consciously. They just require people to be left alone.

Our take: The education system in the US is designed to curtail, rather than encourage, Free Market Principles.  This is a great read for parents and grandparents who want to raise free-thinking children.

The full article is available at FEE.org

Veg-O-Matic Maker Files to Go Public. But Wait, There’s More…

Ronco Brands Inc., a gadget maker best known for its late-night commercials peddling the Veg-O-Matic and the Pocket Fisherman, has a new product to sell: its own stock.

The Austin, Texas, company, which has passed through several owners since its founder Ron Popeil turned the infomercial into a kitschy art form, last week began selling an initial public offering that seeks to raise $30 million and values the business at more than $110 million.

Act now, by buying more than $1,000 in shares, and you’ll get a one-time discount of 20% on Ronco.com purchases, the company says on its website. Pony up more than $5,000, and Ronco will kick in one of the countertop rotisserie ovens that account for more than half its revenue.

Our take: They’re actually sweetening the deal, Ronco style.  Of course they are. We can’t let this pass without sharing Dan Aykroyd and his Super Bass-O-Matic from SNL.

The entire article can be found at WSJ.com