While it is still less than 10% overall, the growth in on-line retail sales has two significant impacts. First it increases profitability since on-line sales offer significant productivity improvements. Second, partly because of those improvements, it reduces employment in retail.
Now, from the overall economic impact, the amount of merchandise being sold is not impacted whether it is sold on-line or in a traditional store. However, as America has stopped being a producer of goods and more of a middleman, selling foreign made goods to American consumers, this may be a significant issue.
It requires watching.
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