Crumbs Bakery May Be Revived, But Closing 65 Stores Still Has Disastrous Effects for Americans
The bankruptcy filings of Crumbs Bakery at the beginning of July 2014 have Americans wondering whether the economy really is on the mend. Within the past couple of years, it seemed as though Americans were slowly recovering from the the economic recession, which began back in 2007: the New York Times has reported that the national unemployment rate is now at 6.1%(the lowest percentage since September 2008); a small Ohio news station has recently suggested that rising gas prices — and Americans’ willingness to pay these prices — may indicate a more stable income for the average family; and the Pittsburgh Courier has reported that a remarkable 2.5 million jobs have been added to the American economy within the past year. But many Americans feel that these optimistic numbers may be overshadowed by more sobering economic news.
Crumbs may yet be saved, reports CNN Money, as another investment group plans to negotiate purchasing the company as part of the bankruptcy filings. Nevertheless, it is not wise to see the new investor as a perfect solution to their financial problems, since the economic failings of companies like Crumbs really does have far-reaching effects. As just a small example: the employees at Crumbs’ 65 locations, spread across 12 states, are now indefinitely left without jobs. Furthermore, many people are wondering whether the bakery failed because the quality of its products and services diminished, or whether Americans simply don’t have the disposable income to spend on cupcakes.
Regardless of why Crumbs closed, its financial failures are only the tip of the iceberg when it comes to American businesses, both small and large, collapsing under economic strain. Many citizens may be initially inclined to say “good riddance” to big corporations, based on the fact that big corporations may have been largely to blame for the recession in the first place; however, the failures of big corporations can have disastrous consequences on the average middle-class families who are still struggling to make a living. Many families are still faced with foreclosure and bankruptcy, and as the divorce rate in the U.S. skyrockets, it is becoming clear that many single parents are dealing with these decisions alone.
Even though the unemployment rate is at an all-time low, 6.1% is still not a great number to see. Many former employees also find themselves in a frustrating spot: regardless of whatever shortcomings failing businesses may have had, at least they provided jobs for hard-working Americans. It is important for us to remember that, even though economic statistics indicate a better economy, there are still many struggling Americans who cannot be ignored.