New York City’s garment district is in danger of being consolidated from a district to a couple of buildings. This is because New York is considering changing zoning laws established in 1987 that have protected the district. District landlords are seeking changes that would allow them to redesign their properties so they can lease them at higher prices to non-garment businesses.
During its peak in the 1950s and ‘60s about 95% of the clothes sold in the U.S. were made in the district, according to Reuters. Today only about 5% of U.S. clothes come from the district. The consolidation could destroy what’s left of the district, according to designer and manufacturer in the district, Nanette Lepore and Robert Savage, in a New York Times Op-Ed. The city could lose its place in the fashion industry, along with the revenue, businesses, and jobs that come with the fashion industry.
Whether or not this zoning change is justified or not is beside the point of this essay, though I certainly wish the best outcome for all businesses in the garment district. My point is that in the garment district we have businesses that are dependant on government protection — zoning laws put into place to protect one business against the natural rights of another business. Fair? Maybe, maybe not. Everything has a cost and in this case the landlords were paying that cost in rents they could not collect because they could not improve their properties. They applied pressure to city government, and no doubt also promises of more tax returns, and now the garment district is in danger. Businesses that thrive in that area will be badly hurt because of the whims of government.
Some will argue that without the government’s protection these businesses would not have existed. I counter that many of these businesses would have established themselves in different locations under different business models and thus not been subject to the whims of governments. These businesses would thrive on their own right, and we wouldn’t be facing the loss of those businesses and jobs.
An interesting note to all of this is that in an interview with Marketplace.org, Lepore said that she could make a bigger profit if she shipped her work to Asia for cheaper labor, as do many in the industry. “But I feel like I’m happy with my business the way it is. I’m making a quality product. I’m known for my fit and for my quality, and it’s because I’m here watching it all the time, and I’m able to control what is happening.”
I am not sure if Lepore realizes it, but she is probably maximizing her long term profit by focusing on quality; a sound business strategy. She is certainly maximizing her personal return from the business in terms of the combination of income and personal satisfaction. These are great qualities for American business to operate under. It would be a terrible loss to this country if her business, and businesses like hers are hurt.
Government protection comes with a cost. In the case of the garment district. Government protection is a 20th century economic model where a supposedly benevolent government picks winners and favorites. Those winners and favorites changed over time and now the dependants created under that outdated system will be hurt.
We are in the 21st century. We need a 21st century economic vision. I propose self-reliance and excellence. Only through self-reliance and excellence can you control your destiny; not be subject to someone else’s demands on you.
