In recent years, many small local shops have closed because customers travel to large shopping centers or malls to do their shopping. Is this a positive or a negative development?
Recently, customers buy from malls and deserted small shops, which led to their closure.
This
trend is a negative development because it ruins the economy
on more than one level
.
Firstly
, the trend is hurting the economy
on the individuals' level
. Namely, when small shops lose their clients they bankrupt. small shop owners are individuals who support their families
; hence
, small families
lose their source of income. For example
, in Egypt, a small grocery store is usually owned by one or two persons, and they hire some extra staff to work in the shop along with their own children too. One grocery store can be the only source of income for multiple families
. Needless to say, large shopping centres are taking local shop owners out of business, and that has a fatal financial impact on a significant number of families
.
A second
negative effect is that this
trend negatively affects the economy
on the state
's level
. The state
gets less tax because there are fewer contributors to the market. In addition
, the government faces an increasing number of unemployment; which creates multiple challenges and limitations on the overall state
's welfare. To illustrate, the government obliges to produce financial aid programmes to help the small private sector pushed out of the market while getting less financial resources such
as taxes. Therefore
, any national economy
will suffer if the local small private sector demolishes.
To conclude, buying from large shopping malls instead
of small local shops is a negative development. That is
because it has negative outcomes on the individual's level
by increasing unemployment and on the state
's level
by crushing the national economy
.Submitted by webunicorn on
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