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Category: Society

The income gap between server and served

Monday, 22 August 2011 11:56 Written by Eric Garland 0 Comments

Our friend Doug Stephens, the world’s top retail futurist, reminds us that one of the issues in bad customer service is due to the social tension between those working behind the counter and those buying in front of it. As economic inequality grows, social tension will likely grow with it.

Over the past 30 years , the economic distance between the lowest paid Americans (many of whom are front line retail workers) and the highest paid, has been widening at an alarming rate. The likelihood that retail workers are serving someone outside their economic bracket is escalating. A mere 20 percent of all consumers now account for at least 40 percent of total retail consumption — a figure expected to increase to 50 percent of consumption by 2015.

At the same time, roughly half of the nation’s front line retail workers earn less than $10 per hour — which raises the question, how can a retail sales associate relate to the consumer who may be spending more on pair of pants than the sales associate themselves will gross that day? The simple truth is that the front line retail worker of today is less like their customer than they have been in more than 100 years.

Henry Ford believed that the future of the United States economy was tied into the ability of his workers to be able to afford his products. Broad income equality, to Ford, was the only way society could function and companies could profit in the long-term. Since U.S. policymakers decided long ago that America would be a mercantile nation rather than a manufacturer, how strange that fewer and fewer people will be able to participate in that retail which makes the lifeblood of the economy.

Corporate profits: business-as-usual in America, with a twist

Monday, 25 April 2011 10:39 Written by Eric Garland 1 Comment

This chart says some interesting things about the post-2008 business world in America. Specifically, it screams that if you are involved in business, the world probably looks very different than it does if you are a teacher, a carpenter, a senior depending on fixed income, or a new grad looking for work.

Over the past 30 years, there have been ups and downs, but if you are a publicly traded large company, you can definitely expect more than five percent return on your capital, and often you can expect much more than the average investor. But what really interests us is that in the post-2008 world of crazy gloom and doom and bailouts – the profit margins look like we’re in a golden age.

Corporate profit trendsAsk the average American, the consumer on whom this success is supposedly based: Are we in a golden age? Does it feel like we’re in a golden age?

Most systems depend on there being a shared sense of meaning. Post-War American success was shared by a broad range of people on the socio-economic spectrum, many of them recent immigrants. The notion of free markets succeeding over a communist enemy provided a certain cohesion to the narrative of what was happening. Are we getting richer? Well, we have a better system and we’re all prospering.

What does this system say about us? Does it make sense? Does it speak to a variety of people?

Eric Garland on a Closer Look Radio: Libya, gardens, and the government shutdown

Friday, 08 April 2011 13:12 Written by Eric Garland 0 Comments

Back once again with the fantastic Pam Atherton on A Closer Look Radio, Eric ties together the disparate topics of locavore restaurants, revolution in Egypt, and fake government shutdowns to what it all means for YOU and your business.

Niall Ferguson on the futures of empire

Monday, 03 January 2011 09:36 Written by Eric Garland 1 Comment

Is empire cyclical, doomed to birth, consummation, establishment, decline and desolation? Or are there other futures for large regimes? Can large complex systems create new kinds of future, or are the winds of fate far too strong? Can we predict decline, change it, improve things, create order out of chaos?

Nobody is better at exploring the large questions than Niall Ferguson. This lecture is long and well-considered, not a candidate for viral videohood. Given the subject, that is perfect.

YOU WILL NEVER RETIRE

Thursday, 17 June 2010 19:33 Written by Eric Garland 0 Comments

Retirement will be impossible, but maybe that will be OK in a world of knowledge workers, says Harvard Business review.

Actually, when you read in medical literature that retirement is the surest highway to alcoholism, depression, and death, this may not be that alarming a forecast.

You know what they say, aging is terrible, but it sure beats the alternative.

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About the blog

This is the official trend blog of Competitive Futures, a management consultancy that provides trend research and analysis for business and government around the world. Here, we update you on interesting trends we see as part of our work for our clients.


For managing partner Eric Garland's new author and speaker blog, please consult and bookmark http://www.ericgarland.co

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