The Failing High street

The high street is not what it once was. Local businesses have been replaced by bigger chain brands. In the short run this is great for consumers as they have more choice and cheaper prices. But in the long run this is causing huge wealth inequality. This can be explained using the leaky bucket theory.

Imagine a bucket that collects all the money spent in a local economy and if there are holes in that bucket then money is leaving that economy. A hole could be caused by a Trans-National Corporation such as McDonalds or Topshop.

These corporations make large profits paying little tax and making large profits, most of which goes to paying CEOs and shareholders, whilst paying minimal amounts to local employees.

Overtime, this leaky bucket empties and there is less and less money in the local economy whilst the large corporations stuff their pockets. This leads to huge wealth inequality as the rich become richer and the poor poorer.

To combat this we need to be more proactive in support of our local businesses. However, this is easier said than done, as it’s hard to expect people to abandon what they know and what is usually cheaper.

An interesting policy would be to put a large tax on non-exporting good producing corporations with 1,000+ employees. This would give companies less of an ability to expand excessively and would leave opportunities for more small local businesses to open.

This would be beneficial as small businesses are better for wealth inequality, one of the biggest issues of modern day economics.