The Economy

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Harris says that she and Joe Biden have done a great job on the economy.   They tell you the economy is booming since they have been in charge.  Here is some food for thought,

Over the past 12 months, corporate bankruptcy filings in the U.S. have surged, largely due to economic challenges such as rising interest rates and labor shortages. By August 2023, there were 459 corporate bankruptcies, surpassing the totals for the entire years of 2021 and 2022. This marked a significant increase, with 57 companies filing in August alone.

In 2024, as of June, there had been 40,267 total bankruptcy filings, including a sharp 70% rise in Chapter 11 filings compared to the previous year. The trend has continued, with significant filings reported monthly, though October 2023 saw a slight dip in the number of corporate bankruptcies.

The overall trend indicates that many companies are struggling to adapt to the changing economic environment, leading to this steady rise in bankruptcies.

These are significant numbers to grapple with.  The economy is not great as Harris would tell you.  Bidenomics was not a good thing.   Interest rates have killed businesses especially small businesses.

In 2024, Amazon has either closed or delayed the opening of at least 42 warehouses across the U.S., totaling nearly 25 million square feet of space. Additionally, plans for 21 more locations have been delayed, further reducing the company’s warehouse footprint. These closures primarily target smaller delivery stations rather than major fulfillment centers.

What does this tell you about our economy? 

Every day we are reading about business closures and downsizing.

In 2024, several major national retail chains have announced significant store closures due to economic challenges, evolving consumer behavior, and shifts toward online shopping. Some of the prominent closures include:

1.  CVS is in the final phase of its three-year plan to close 900 stores. In 2024, 300 stores are slated for closure as the company restructures to address shifting demographics and shopping patterns.

2. Foot Locker plans to close 113 stores this year, focusing on shutting down underperforming locations in malls with lower foot traffic.

3. Rite Aid: After closing 150 stores in 2023, Rite Aid will shut down an additional 77 locations in 2024, facing mounting financial struggles.

4. Macy’s is reducing its store count by closing 50 locations in 2024, part of a broader plan to close 150 stores over three years.

5. Walgreens is set to close 150 U.S. locations by the end of August 2024, part of a larger strategy to cut costs and streamline operations.

6. Office Depot: The office supply chain is closing 200 stores this year, responding to declining demand for physical office supplies and increased competition from online retailers.

7. TJ Maxx and Marshalls: These discount retailers are planning to close several stores in 2024 due to high rents, lower sales, and increased theft.

These closures reflect broader trends in the retail industry, where companies are adapting to economic pressures, and these are just a few of them.  Countless numbers have gone out of business completely.

The high-tech industry has continued downsizing in 2024, driven by economic challenges and the shift toward AI integration. Over 136,000 employees from tech companies globally have lost their jobs so far, with major players like Intel, IBM, Cisco, and Amazon leading the layoffs. Intel, for instance, announced the reduction of 15,000 jobs, and Cisco cut 6,000 employees as they focus more on emerging technologies such as AI and cybersecurity.

Several companies, including IBM and Dell, have also been restructuring their operations. Dell has reduced its workforce by 12,500 employees, while Apple has laid off staff in its services and AI divisions. This trend of downsizing has affected large firms and startups alike, as the tech industry prioritizes AI-driven efficiency over traditional roles.

The layoffs are part of a broader trend as companies seek to balance profitability and adapt to technological advances like AI, with many tech leaders projecting further workforce reductions as they navigate shifting market demands.

Yes, Biden and Harris tell you everything is great.   I have not talked about inflation but these changes that are happening behind the scenes tell it all.  If Harris gets elected, she will raise the corporate tax rate 7%.  If you think some of this information is daunting, just wait.

I have only scratched the surface of what is happening.  LLC Flooring just announced it is closing all their stores.  Countless Fast-Food Businesses are closing and downsizing.  Major Automotive chains like Advance Auto are closing hundreds of stores.  Many corporations have put store growth on hold and are restructuring their pay, positions and staff sizes downwards in preparation for what is to come.

Yes, Harris and Biden have done a great job with the economy and in November if you like what you are seeing you can vote for more of this (including higher taxes and more inflation.)