Tuesday, June 25, 2002
The economics of bargain-hunting on East 14th Street and elsewhere
LOOKING AHEAD by Wally Dobelis
"Turn 14th Street green again; bring cash" is as true now as it was in the late 1970s, when Klein's-on-the-Square collapsed and textile imports from China flooded the of bargain basements along our Street of Dreams, West of Broadway. East 14th Street was then a disaster area, of flophouse, dens of iniquity and frequent daytime crime.
The East of 14th Street has had a rebirth, thanks to the 14th Street-Union Square LDC/BID and the hardy residents and businesspeople, the spread of the NYU empire and the cash flow into the poor neighborhood during the 1990s. You can feel safe there while bargain-hunting.
The special charms of East 14th Street are its 99-cent stores. There are three of them, one next to the Met supermarket East of 3rd Avenue, and two on the 500 block, in the Alphabet City. These replacements of the five-and-dime stores have expanded their spaces, going much beyond the original bargain groceries, hardware items, kitchen ware, school supplies and toys from China, to include party goods, dishes, decorative items and clothing. There is also a Bargain Bazaar, with an immense supply of china sets, colorful glassware, figurines of angels, putti, Chinese vases, tea services, clocks and frames. The goods come and go, and currently the store is concentrating on animal art. It you want to equip your den on a whacky elephant or lions' theme, there are clocks, statuettes, busts, framed pictures, lamps and plaques, with giraffe, monkey and donkey images for fill-in. And it is inexpensive, one or two hundred dollars will equip you. To make the environment totally post-modern, the current irresistible is a $5.99 yellow plastic flashlight-siren- radio, for emergency use. Driven by C-batteries (four for 99 cents in the store next door), you can justify the splurge with homefront defense arguments.
The outbreak of bargain store expansion is particularly noted in Columbia County, 100 miles North of Times Square. The poor agricultural community has several, along the shopping strip road, Route 9, near Hudson, three in one strip alone. Food , featured in all of these stores, is important. Their names range from the generic 99-cent store, through Yankee Dollar, Dollar Tree, Dollar Store, Dollar General, Family Dollar. Some are national chains, and the last two have also $2-$5 items. Save-a-Lot and Aldi are discount supermarkets, specializing in house brand goods. Unlike the Shoprite, Grand Union and Price Chopper chains with their infinite varieties, these stores have a only a few hundred basic items, at half the brand name prices, stacked in their original cartons on plain racks or skids, and the shoppers pack their own purchased bags. Shopping carts require a 25-cent deposit, enough to assure Aldi's management of their return to the system (sometimes entrepreneurial kid spotters will take them back).
Is all this trading-down good for the country? Not really; the US-product oriened five-and-dimes have been replaced with imports from impoverished countries, produced at subsidized labor rates and paid for by US deficit financing, taking jobs away from Americans. That money, before March 2000, flowed steadily into US investments, increasing demand and pushing up share prices. In the past three years foreign investments have been withdrawing, depressing the market. All this reduces the wage rates in the US and cuts employment.
US needs economic policies that foster consumer spending, to pay for American-produced goods. During the phony boom the US overexpanded its industrial production facilities, and inventories are still too high. The deficit-funded reductions in dividend taxation and the tax cuts for upscale incomes, intended to build up investment in production facilities, are not likely to fulfill the expected results, because corporate America is still geared towards downsizing and cost-cutting. The cuts will push up the stock market, at higher price-earnings ratios. What would give the economy continued upward jolts? Think of investment credits for small business; actions favoring American products that imports cannot affect, such as first-time housing, while interest rates are still low; extension of unemployment benefits.
Now for upbeat news from 14th Street.. While using the Chase bank's ATM, on 1st Avenue, corner 15th Street, saw a neat group of 25 third-graders from PS 34M, the FDR School at 730 E. 12th Street, all in twos, holding hands. They were brought by their teacher, Ms. Shirley Lew, on a field trip, to learn the inner workings of a bank, and to study the handling of money. Branch Manager Shirley Bowen and Assistant Manager Richard Mastucci were on hand for a lecture on the 2nd Floor, and a tour of the vault, the back offices and the client- minded front office. What a neat idea! Last week the class visited a city restaurant, to learn how the chefs, food handlers and wait staff cooperate in bringing meals to hungry customers.
"Turn 14th Street green again; bring cash" is as true now as it was in the late 1970s, when Klein's-on-the-Square collapsed and textile imports from China flooded the of bargain basements along our Street of Dreams, West of Broadway. East 14th Street was then a disaster area, of flophouse, dens of iniquity and frequent daytime crime.
The East of 14th Street has had a rebirth, thanks to the 14th Street-Union Square LDC/BID and the hardy residents and businesspeople, the spread of the NYU empire and the cash flow into the poor neighborhood during the 1990s. You can feel safe there while bargain-hunting.
The special charms of East 14th Street are its 99-cent stores. There are three of them, one next to the Met supermarket East of 3rd Avenue, and two on the 500 block, in the Alphabet City. These replacements of the five-and-dime stores have expanded their spaces, going much beyond the original bargain groceries, hardware items, kitchen ware, school supplies and toys from China, to include party goods, dishes, decorative items and clothing. There is also a Bargain Bazaar, with an immense supply of china sets, colorful glassware, figurines of angels, putti, Chinese vases, tea services, clocks and frames. The goods come and go, and currently the store is concentrating on animal art. It you want to equip your den on a whacky elephant or lions' theme, there are clocks, statuettes, busts, framed pictures, lamps and plaques, with giraffe, monkey and donkey images for fill-in. And it is inexpensive, one or two hundred dollars will equip you. To make the environment totally post-modern, the current irresistible is a $5.99 yellow plastic flashlight-siren- radio, for emergency use. Driven by C-batteries (four for 99 cents in the store next door), you can justify the splurge with homefront defense arguments.
The outbreak of bargain store expansion is particularly noted in Columbia County, 100 miles North of Times Square. The poor agricultural community has several, along the shopping strip road, Route 9, near Hudson, three in one strip alone. Food , featured in all of these stores, is important. Their names range from the generic 99-cent store, through Yankee Dollar, Dollar Tree, Dollar Store, Dollar General, Family Dollar. Some are national chains, and the last two have also $2-$5 items. Save-a-Lot and Aldi are discount supermarkets, specializing in house brand goods. Unlike the Shoprite, Grand Union and Price Chopper chains with their infinite varieties, these stores have a only a few hundred basic items, at half the brand name prices, stacked in their original cartons on plain racks or skids, and the shoppers pack their own purchased bags. Shopping carts require a 25-cent deposit, enough to assure Aldi's management of their return to the system (sometimes entrepreneurial kid spotters will take them back).
Is all this trading-down good for the country? Not really; the US-product oriened five-and-dimes have been replaced with imports from impoverished countries, produced at subsidized labor rates and paid for by US deficit financing, taking jobs away from Americans. That money, before March 2000, flowed steadily into US investments, increasing demand and pushing up share prices. In the past three years foreign investments have been withdrawing, depressing the market. All this reduces the wage rates in the US and cuts employment.
US needs economic policies that foster consumer spending, to pay for American-produced goods. During the phony boom the US overexpanded its industrial production facilities, and inventories are still too high. The deficit-funded reductions in dividend taxation and the tax cuts for upscale incomes, intended to build up investment in production facilities, are not likely to fulfill the expected results, because corporate America is still geared towards downsizing and cost-cutting. The cuts will push up the stock market, at higher price-earnings ratios. What would give the economy continued upward jolts? Think of investment credits for small business; actions favoring American products that imports cannot affect, such as first-time housing, while interest rates are still low; extension of unemployment benefits.
Now for upbeat news from 14th Street.. While using the Chase bank's ATM, on 1st Avenue, corner 15th Street, saw a neat group of 25 third-graders from PS 34M, the FDR School at 730 E. 12th Street, all in twos, holding hands. They were brought by their teacher, Ms. Shirley Lew, on a field trip, to learn the inner workings of a bank, and to study the handling of money. Branch Manager Shirley Bowen and Assistant Manager Richard Mastucci were on hand for a lecture on the 2nd Floor, and a tour of the vault, the back offices and the client- minded front office. What a neat idea! Last week the class visited a city restaurant, to learn how the chefs, food handlers and wait staff cooperate in bringing meals to hungry customers.
# posted by Wally Dobelis @ 2:41 PM 
