THERE IS NO INVISIBLE HAND

Rebecca Baird-Member (13 June) asks on Commercial Observer HERE

“Does Broadway Have Too Many Vacant Storefronts?”

“Empty storefronts can sap the vitality from a neighborhood if they are not reoccupied quickly,” Brewer said in a statement accompanying the survey. “The normal ‘invisible hand’ of capitalism—old businesses closing and new ones quickly replacing them—too often doesn’t seem to work in Manhattan. Almost every neighborhood seems to have a storefront that’s been vacant for years.”

COMMENT

Oh Dear! There is no “invisible hand of capitalism” … There is no natural, nor ordained, certainty that as “old businesses” close, “new ones” will “quickly”, or even slowly, replace them.

Which planet does Rebecca live on?  Samuelson’s ‘La, La Land’?

Zoning is political. Taxes are also set politically in such markets.  Empty shops warn-off potential renters.