That argument is true, but it cuts both ways. Local bike shops have, over the years, bought bikes and accessories made in China. That has the effect of undermining their own customers' employment and ability to buy more expensive bikes.

We could take a narrow view, that few (if any) customers of a LBS work for a bike manufacturer. But, those employees were less capable of buying higher-end products and services, etc. Contributing to an overall trend of downsizing and offshoring (race to the bottom).

My concern with arguments that department-store buyers undermine bike shops is that it implies bike shops are somehow pure. They've played the same pragmatic game everyone else plays when weighing a $200 department-store bike, or $500 LBS. I agree, there are longer-term, broader considerations about that race to the bottom. But, LBS's made similar choices (contributing to the undermining of American bicycle manufacturing).

Just want to make sure department-store buyers aren't made to feel traitorous.