|
You are invited to respond with your opinion on issues.
Diversity of opinion is expected and invited. We do ask that you take responsibility for your positions by signing what you post. We also ask that you participate with the civility that all of us – including yourself – deserve. |
| While Citizens First will often make organizational recommendations, we believe that the ultimate power to make decisions rests with all of us as engaged citizens. Truth is not a commodity owned by any individual or group. Through civil engagement we can discover common ground. |
In the spirit of continuing the debate over big-box development and how it can help/hurt Blacksburg, below are several academic papers, research from the Pew Foundation, and newspaper articles. Some of these articles are on generic "big box" and some are arguments specifically regarding Wal-Mart.
Personally I don't really care for Wal-Mart, but I am intrigued by the arguments that big boxes can (not will or won't) enhance our town's economy. These articles are fairly balanced, so they continue to point out the negative and positive aspects.
Also, I simply think it is healthy for everyone to understand both sides of the argument. After all, in the end, a decision will be made and we need to understand the decision. Being familiar with both sides of the argument helps with that.
For quick reading, I cut/pasted sections from some of these under their links. I did not do that for the Pew Foundation research link (at the bottom) because it is complex research that deserves to be read as a whole.
Enjoy reading and debating! Viva Blacksburg!
"Let Truth and Falsehood grapple; who ever knew Truth put to the worse, in a free and open encounter?" John Milton
http://www.msubillings.edu/caer/bix%20box%20report.htm
In most cases the initial growth in sales for communities with new "mega-retail discount stores" was greatest in the first few years, averaging about fifty percent growth. After about five years the sales begin to decline, but after ten years they were twenty-five percent higher than before the large discount retailer moved to town. Total
sales did increase in certain areas such as general merchandise, eating and drinking places, and home furnishings, but declined in almost all
other areas. (See graph)
The surrounding towns that did not have such a chain were immediately affected. In fact, their sales dropped by two percent the first year and
continued to drop at a rate of thirty-four percent after ten years. This is because stores such as Wal-Mart strategically position themselves in
areas that will draw consumers from surrounding rural communities, using lower prices, which is a great incentive for shoppers who are from poor,
rural areas. According to Ken Stone, the greatest impact in Iowa has been in towns that do not have a Wal-Mart and have a population of less
than 5,000. (See graph below).
http://www.washtimes.com/commentary/20060826-101823-1418r.htm
(NOTE: I don't know the history of this paper. They seem to take a fairly right-wing view, but the article isnt' bad.)
....Take Mr. Biden's comments. Contrary to his claims, there is enormous economic evidence that Wal-Mart's has helped poor and middle class
consumers -- in fact, more than anybody else. Our own data analysis shows Wal-Mart is concentrated primarily in smaller, rural counties with a per capita income far lower than other retailers, like Costco. And, unlike the picture painted by labor activists, when the Wal-Mart moves in, good things happen. Looking at 25 small towns where Wal-Mart opened stores in 2002, we found employment growth was much stronger in "Wal-Mart communities" than in other areas.
Other academics have reached similar conclusions about Wal-Mart's positive effects for the poor and middle class. University of Missouri
economist Emek Basker shows Wal-Mart's presence tends to lower prices by varying amounts, perhaps nearly 10 percent in the long run.
Respected Massachusetts Institute of Technology economist Jerry Hausman argues that consumer welfare gains are even larger than those
estimated by Mr. Basker, probably in excess of 20 percent of sales. Jason Furman, former director of economic policy for John Kerry's presidential campaign, claims Wal-Mart's discounting on food alone boosts the welfare of American shoppers by at least $50 billion a year. These savings help poor and middle-class consumers disproportionately
since they spend a greater percentage of their disposable income on food products. Wal-Mart's ability to help poor and middle-class consumers led Mr. Furman to dub the retailer a "progressive success story."
These academic studies are supported by public opinion research.
http://www.washingtonpost.com/wp-dyn/content/article/2007/03/23/AR200703
2301675.html
This is an interesting article as it talks about negotiations that local businesses had with Wal-Mart before they moved to town. In this
instance, they were moving in to occupy a vacant building. The negotiations took two years.
Dula said he received positive feedback from local businesses at a meeting last week. He said many hoped Wal-Mart would increase traffic the area. The store is on the site of the former Capital Plaza Mall, once occupied by a Montgomery Ward's department store and Hechinger. Now, McDonald's
and an outpost of Chevy Chase Bank flank the new store.
"They see Wal-Mart as bringing people to the area," Dula said. "If people come to the area and discover the beauty of their area, they'll
start shopping at their stores as well."
"Wal-Mart was coming to our area, like it or not," Ortiz said. "Our goal was to engage them to bring the best possible Wal-Mart."
http://www.findarticles.com/p/articles/mi_qn4188/is_20060604/ai_n1645541
3
This column is not an endorsement of Wal-Mart. It's frankly not my favorite place to shop. But I'm wondering when crushing the competition
became un-American? Isn't that the whole idea behind a free-market economic system? Isn't competition supposed to lead people to innovate,
invent and find new ways to give customers what they want at a low price, and doesn't it do this because the alternative to being innovative and inventive is to go out of business?
Or do we believe in competition only until someone does it a lot better than someone else? Do we believe in private property rights until, like
the people of Hercules, it involves a property owner who is big and rich and generally despised?
Where do low prices and our romantic notions about small shops and early 20th century downtowns intersect? And whose interests are we serving?
The same Pew survey found that the people most fond of the store are the ones who earn less than $30,000 a year -- poor people who need low
prices.
That does put opponents in a difficult, rather snobby, position.
http://pewresearch.org/pubs/56/democrats-face-ideological-split-over-wal
-mart
http://people-press.org/reports/display.php3?ReportID=265
http://www.forbes.com/finance/2005/11/11/charities-corporations-giving-c
x_lm_1114charity.html
In closing, I'll just say that I'm more worried about Kroger's future plans than I am Fairmont's. At least Fairmont has a pretty positive track record and I've seen some pretty awful Kroger centers. Do you realize how much land they bought? Ah, that's another debate.
Highlights Of The The Web Pages You Refrenced
From the "The Impact of Big Box Retail Chains on Small Businesses" article at http://www.msubillings.edu/caer/bix%20box%20report.htm
1. A review of studies on the subject of the effects of "big box" retail chains such as Wal-Mart, K-Mart and Target on small businesses in rural communities found that there is a strong impact on employment rates, sales and the environment of small towns. "Main Street America" and "Mom and Pop" stores are slowly becoming a thing of the past
2. "Studies in Iowa have shown that small towns lose up to 47 percent of their retail trade after 10 years of Wal-Mart towns nearby".
3. "’Partnering’ developed between the mega-retail discount chains and the manufacturers allowing these chains to buy ‘direct’. In many cases they eliminated the regional wholesaler who had traditionally served the small downtown retailer as well. The new position of the powerful mega-retail chains, discounters or otherwise, was not to augment but to compete." Obviously, this puts the smaller retailers at a disadvantage, especially as these wholesalers lose more and more business.
4. The surrounding towns that did not have such a chain were immediately affected. In fact, their sales dropped by two percent the first year and continued to drop at a rate of thirty-four percent after ten years.
5. When stores such as Wal-Mart or Target propose building in these areas the initial reaction of local authorities is positive citing an increased tax base and more options for the community. However, over the years the result is often a lower tax base as the smaller businesses close.
6. Another issue that impacts small communities with the opening of these retail stores is traffic congestion. A report by the Billings, Montana traffic engineer quoted in the November 17th Billings Gazette article, says that the proposed Wal-Mart super-center in the Billings Heights will add 5,118 new cars to main street per day, which now carries 25,000 vehicles each day and increase traffic congestion by one-fifth
7. Another problem is the decline of "main street America". Ellen Dunham-Jones states, "Wal-Mart’s merchandise has not only homogenized consumption patterns throughout the country, it is homogenizing our experience of landscape." In other words, the introduction of these discount retail chains has altered the landscape of America. Edward B. Stiles states, "Traffic density in older malls began to die as shoppers go to the newer and larger mega-retail discount stores whether it be Target, Kmart or Wal-Mart. Within a year every second and third retail store is closed. These stores take on a ghettoized boarded-up appearance. Graffiti, iron grills, unsightly signs that appear and what five to ten years earlier was a handsome mall in harmony with the countryside, now resembles an urban ghetto. The National Trust for Historic Preservation in Washington, D.C. describes these developments as ‘Urban Sprawl.’ But, what was witnessed was not ‘urban sprawl’, but ‘suburban’ as well as ‘rural sprawl.’"
8. Another factor that contributes to the impact of these stores on small business and communities is their fast growing expansion and cooperate decisions to close certain stores. These losses greatly affect these areas. According to Edward B. Shils, hundreds of thousands of dollars are lost in infrastructure development, land development and foregone taxes. These losses sometimes reach into the millions.
9. In conclusion, the impact of "big box" retail chains on small businesses in rural communities is great.
From the commentary entitled "Wal-Mart against the wall?" located at:
http://www.washtimes.com/commentary/20060826-101823-1418r.htm
1. A democratic presidential candidate on the campaign trail attacking corporations is nothing new. Oil companies, drug manufacturers, and the tobacco industry have all found themselves on the receiving end of election-year criticism from Democratic politicians. Democratic presidential contenders reportedly are at it again. This time, Exxon and Pfizer's public relations departments can rest easier because there is a fresh corporate punching bag: Wal-Mart.
This article is entrenched so deeply in partisan rhetoric it is worthless and not relevant to Blacksburg. But the Washington Times is well known for that. Additionally it's Authors Richard Vedder is a visiting scholar at the American Enterprise Institute (The source of another web page you cited) . Along with Wendell Cox, he is the author of the forthcoming book, "The Wal-Mart Revolution: How Big Box Stores Benefit Consumers, Workers, and the Economy" (AEI Press, 2006). Bryan O'Keefe was a researcher for the book
1. The new Wal-Mart in Landover Hills doesn't sell alcohol or guns. It does have skylights to cut down on energy use. It does not operate 24 hours. Such concessions were unheard of at Wal-Mart's cookie-cutter stores several years ago. But they are just a few of the compromises the world's largest retailer reached with Prince George's County residents and community leaders concerned about the store's impact on the neighborhood. It's a new way of doing business for the company, whose hopes for domestic growth lie in conquering urban areas such as Landover Hills, where it has faced strong opposition from labor unions and small businesses. The store symbolizes how far Wal-Mart was willing to go to gain a foothold inside the Beltway.
Who wants to be conquered or allow this type of foothold?
2. But Jim Biedlingmaier, owner of Bill's Hardware, said he had resigned himself to losing customers to Wal-Mart. It happened after Lowe's came to town and after Home Depot opened. Wal-Mart is just the latest big box to invade the area, and Biedlingmaier said he was ready
3. Ortiz, the Edmonston mayor, said other residents and businesses were waiting to see whether Wal-Mart kept its promises
4. Mom-and-pop stores worry that they will be unable to compete with Wal-Mart's cutthroat prices. Labor organizations fear the non-unionized retailer would depress wages and benefits in the region.
5. The Wal-Mart name was the most recognized among a list of 15 major companies in a 2005 survey by the Pew Research Center. Ninety-one percent of people responding to the survey said they lived within shopping distance of a Wal-Mart
I already feel as though I live within shopping distance, How close do we need another one I'm not going to shop at?
6. "Wal-Mart was coming to our area, like it or not," Ortiz said. "Our goal was to engage them to bring the best possible Wal-Mart."
Interesting we both quoted this comment, It makes me think that Blacksburg, with the passage of Ordinance 1450, has the option not to be put in this situation and should never be forced to operate from a "like it or not" position.
The article at:
http://www.findarticles.com/p/articles/mi_qn4188/is_20060604/ai_n16455413
Which you posted nearly in it's entirety raises the questions that are part of the core argument behind empowering the residents of Blacksburg with Ordinance 1450. The Author begins his argument with the supposition that "The hatred all seems to revolve around the same argument - that Wal-Mart "is the worst thing that could happen to our community. They want to crush the competition." While this is an adequate opening statement it is a vast over simplification. Wal-Mart (and other big box stores) have provided a plethora of reasons that they are despised.
1. Failing to meet environment guidelines for the storage of chemicals sold at the stores (The Blacksburg proposed site is on 1 of 3 wetlands in Blacksburg)
2. Locking in undocumented workers overnight to clean the stores
3. Using Social services in the communities where they are allowed to build as alternatives to providing affordable health care
4. leaving empty buildings behind - Wal-Mart listed 333 empty buildings as of February, 1999 Christiansburg had 1 for about 2 years after they moved last time it is still only partially occupied
5. Abusive conditions in their overseas sweat shops
6. Traffic and sprawl.
7. Anti-competitive practices - including lowering prices until the competition has folded - and then back up.
8. illegal corperate eavesdropping and spying on those that oppose their positions.
I'll go on if you request, but Snob, or oppressive to the underprivileged, No. Not when there is a Wal-Mart 10 minutes away by public transit.
"Let Truth and Falsehood grapple; who ever knew Truth put to the worse, in a free and open encounter?" John Milton
“In battling evil, excess is good; for he who is moderate in announcing the truth is presenting half-truth. He conceals the other half out of fear of the people's wrath.” Kahlil Gibran
Debate
The articles posted had points on both sides of this issue...that's why I posted them and not some of the myriad of those out there that are just one sided. It is a complex issue that needs open discussion.
Real Debate v Propiganda
The title of your article solicited the reader to "consider both sides", but you only posted one side. It fains fairness under the guise of soliciting debate. There is nothing complicated about doing the right thing.