As part of my notion that we don't have a weak economy but a changing economy, I've been thinking about a blog entry about how Netflix is reducing the need for video stores and their employees. Today the Star Tribune had a story about Blockbuster – "Shares of Blockbuster tumble after warning it may need to file for bankruptcy protection". The article states that one of the causes is competition from Netflix. "The company has had to close about 1,300 stores and wants to shut down hundreds more." Shutting stores means letting employees go. Think of all the other video stores in the same predicament. Think of all the other businesses whose reason to be has changed.
All the employees let go by video stores won't be able to get jobs at Netflix or at any other similar service. Think of the idealized Netflix operation. A customer signs up online and is accepted or rejected automatically. A customer places an order online. The computer orders a robot in the warehouse to fetch the DVD, put it in an envelope, print the shipping address on the envelope, and place it in a bin to go to the Post Office. Now humans get involved with a postal employee picking up the bins and driving them to a sorting center. The sorting center is mostly automated and the sorted packages are delivered in another truck or series of trucks. A mail carrier picks up the packages at the destination post office and delivers them to the customers.
Even the postal workers will be cut out of this system. As internet bandwidth gets larger and more people have faster computers, the customers will order movies to be sent directly to their computers ("streaming").
This scenario is being replicated across industry after industry. People not needed. And guess who demands this: people who want lots of goods for the least money and hassle.
I'll stop here and get off my soapbox about the trends too many of us aren't considering.
