I would like to see some good information about smaller towns and how Wal-Mart effects their quantitative and qualitative existience. Are there any before and after Wal-Mart data or examples? If there is proof that the economy, health, etc. are lowered then there may be a chance to stop them. Otherwise they are just better businessmen.

Around California there are communities that need economic stimulation that can be brought by new businesses. But there is a fine line that must be walked by major retailers in order to benefit themselves and the community. If we look at South Central LA or South LA (as it’s called by individuals looking to remove the stigma that the name has historically brought to mind), we see that there are a lack of major retailers. What does this really mean? It means dollars that could be spent in the community are not. Does it mean that those dollars stay in the community and are used to help revitalize? No, not necessarily. Does this also mean that small businesses prevail, are owned and operated by individuals who make up the demographic of the community? Again…no, not necessarily. I am a strong proponent of small businesses and a quality product. I am also a proponent of new jobs and dollars being spent inside a community rather than having to leave the city limits in order to spend.

A bargain must be made with major retailers they must be forced to change traditional business practice in order to coexist with the community they inhabit. Is it possible for Wal-Mart to restrict the availability of certain products in their store to compliment what is already available at small privately owned retailers? Is it possible for Wal-Mart to invite small retailers to share space and hopefully profit that may be gained by exposure and foot traffic? Instead of a space within the store for a McDonald’s maybe a local food store can occupy the same space. The reality is there will be casualties and concessions must be made on both sides or else no one will win.

I agree that it is unfortunate that many Wal-mart employees look to the state to provide health care and that “mom and pop” stores are being forced to shut down. However, I think we need to keep in mind that this may be better than the alternative. I don’t know many mom and pop stores that would be able to afford healthcare for their employees and if they did it would definately cause a reduction in the amount of people they could afford to hire.

Therefore, Wal-mart might be the best alternative since they can employ more people (this definately helps the community), even though it seems as though they could provide more healthcare. That being said, it would be nice for them to offer healthcare earlier to employees, with current thresholds being at 6 mos for full time and 2 years for part time. The waiting period does seem like a long time and with high turnover, it shouldn’t hurt them that much.

I agree with abroderick here. The fact that Wal-Mart offers health coverage at all to part timers is relatively noteworthy. Is Wal-Mart a pioneer in its offerings to its employees, in terms of benefits and pay? Nope. The most competitive applicants, with the highest of expectations, therefore likely will not apply at Wal-Mart. They likely instead apply for part time positions at places like Starbucks, which is ranked #29 on Fortune’s Best Companies to Work For, where they pay people a premium, more than the cost of their raw materials, to ensure that their employees deliver that premium “Starbucks experience”. But Wal-Mart jobs are still very competitive, likely due to the fact that they offer an arguably fair pay and benefits package. Why else would people even bother applying? Are the loud, frustrated voices we are hearing about Wal-Mart’s unfair labor practices from people who truly feel taken advantage of, without the ability to take their skills elsewhere, or from unions who just want a piece of the Wal-Mart pie?

Re: Anthony’s question about quantitative data on Wal-Mart’s impact on development.

In June 2006 Social Sciences Quarterly published a study on Wal-Mart’s impact on poverty. The authors found that the presence of Wal-Mart stores is associated with a significant negative effect on poverty. The study occurred during a period of nationwide economic growth; the counties with Wal-Marts were SLOWER to DECREASE their poverty rate than other counties during the same period. The authors use a regression and control for the obvious factor that Wal-Marts will tend to be located in poorer counties.

Social Sciences Quarterly summarizes the results as follows: “After controlling for other factors determining changes in the poverty rate over time, we find that counties with more initial (1987) Wal-Mart stores and counties with more additions of stores between 1987 and 1998 experienced greater increases (or smaller decreases) in family-poverty rates during the 1990s economic boom period.”

The study is troubling evidence that opening a Wal-Mart is not good for a community’s development. A description of the study can be found at: http://stlouis.bizjournals.com/stloui…

Wal-Mart’s impact on a local community may not be all the evident in larger metropolitan, suburban environments. However, the impact on rural America can be devastating. Please keep in mind that in most rural communities the opportunity to be hired by a Starbucks does not exist (because, believe it or not, they don’t have any yet). Rural America, in most cases, is not healthy due to the loss of manufacturing jobs (what part has Wal-Mart played in this over the years). But, when Wal-Mart causes the small mom and pop shops to close, many other local service providers are impacted from the suppliers of goods to those shops to people who help repair or maintain the shops to local banks to local real estate if the property is rented and will later sit vacant. In short, the impact of one mom and pop shop closing has a far reaching impact on the overall health of a local community and other employers in the community. Correct, mom and pop shops often don’t provide health insurance to their direct employees. That is why in mid and small communities many factory and manufacturing jobs are coveted for their pay and benefits. However, due to the larger impact by Wal-Mart on our economy, those manufacturing jobs are drying up. When manufacturing closes and so do mom and pops, you go to work at Wal-Mart. Having just returned from a month in Germany and traveling to rural towns, it is easy to see that the health of German rural communities far surpasses the health of our own. Those communities have an interconnected nature that promotes overall health. True, the German shopping culture is much different than our own as they don’t expect to visit one store that meets all of their needs and they like it that way. In a globalized world, we must chose how fully we embrace globalization and it must be more than a race to the bottom.

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