Signs of Economic Problems

Elliot Bay Book Company, an iconic book store in an old Seattle brick building is either going to downsize and move or go out of business.

"Bookies" will lament that this is another in the decade long epic battle between bricks and mortar independent book sellers and big box/Amazon retailers. Or they will say electronic media readers like Kindle are making books themselves obsolete.

I think this tale may have something to do with those struggles, but more to do with the current economy and the failure of government agencies in Seattle to understand the difficulties, the actual difficulties, of small businesses.

First, Elliot Bay is not a small independent book seller. Years ago the original owner sold the business to it's current owner who is well versed in marketing, book selling, and owning businesses. He owns two other book stores as well as several other retail operations. However, Elliot Bay is a different animal than the other two stores, one located in a smallish mall and the other is a used book store. Elliot Bay has been part of Seattle for over 30 years. It's a landmark.

But the City of Seattle has been on a mission to reduce automobile traffic, so finding parking in the Pioneer Square area takes obsessive zeal. Just darting out to buy a book is not that kind of obsession. And the location of the book store is a mere few blocks from the professional sports stadiums. Seattle Department of Transportation and the police make getting in and out of the neighborhood on a game day a navigational nightmare. And add to it last winter's debacle with the City of Seattle failing, no neglecting, no intentionally NOT plowing the streets for two weeks during a snowstorm (the key two weeks for holiday shopping when most book sellers make the bulk of their annual income) and the recipe for failure is written. Then of course, there is credit. The book store's credit (used to buy inventory) is tapped out and no lender wants to write a new loan (you know, those banks we bailed out?).

For all the talk by politicians that they want to help businesses, they really don't know what to do. So-called business lobbying groups, like the Chamber of Commerce really don't have small business interests at heart. They really represent their own professional staff and large mega-businesses, like, say Barnes and Noble who would be delighted to see Elliot Bay shutter it's windows. And politicians take money from the Chamber of Commerce's Political Action Committee, not from small time owners of little shops in Seattle. So the mayor and city council will wring their hands (it's an election year) about the loss of Elliot Bay, but really, nothing will get done.

But the story of Elliot Bay is applicable to every town and city in America right now. And sooner or later there will be shuttered windows and empty store fronts unless those in power in finance and in managing cities and towns figure out there are ways to help this economy and it ain't bailing out banks too big to fail. That really it's helping out small book stores so small they need to succeed.