Short-term savings, long-term costs

One of the most important studies that we have on the effects of local business compared the impacts of $100 spent at a local book store versus $100 spent at a chain. $100 spent at the local book store left $45 in the local economy. $100 spent at the chain left $13, so we get 3 times the income effects, 3 times the jobs, 3 times the tax proceeds for local governments.

The principle difference was that the local book store had a local high level management team; it used local lawyers and accountants; it advertised on local radio and TV. None of those things were true of the chain store.

Excerpt from 'The Economics of Happiness'

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Wal-Mart's lengthy struggle to open in New York City has hit fresh problems -- a controversial report that said America's biggest discounter does not just sell cheap, it makes neighborhoods poorer.

"The overwhelming weight of the independent research on the impact of Wal-Mart stores ... shows that Wal-Mart depresses area wages and labor benefits ... pushes out more retail jobs than it creates, and results in more retail vacancies," [...]

New York City Public Advocate Bill de Blasio calls a possible Wal-Mart store in New York "a Trojan horse."

"It looks appealing to a lot of families who are hurting but it turns into a big problem in the long term because of the net elimination of jobs," de Blasio said.

Despite the poverty in East New York and Brownsville, many residents are against the stores setting up here.

"It would be a disaster," said Mark Tanis, owner of an East New York shopping market about three miles from a proposed sites. "It would have a detrimental impact on our area."

Tanis said he fears a product he sells for $20 could sell for as little as $12 at Wal-Mart and drive him out of business.

East New York resident Darryl Williams, 43, echoed the view of many, saying, "Cheap things would be nice but if it's true that we'll end up with even fewer jobs, that's not good."

Courtney Laidlaw, 22, who lives near the two possible locations said, "We have become a society of bargain shoppers and having a Wal-Mart locally will definitely be beneficial.

"The small businesses that can adapt to the socioeconomic times that we live in will find a way to survive. Wal-Mart is just an alternative destination, not the only destination."

In Brooklyn, one of the loudest anti-Wal-Mart voices has been City Councilman Charles Barron from East New York, who has been leading demonstrations.

"We don't need Wal-Mart (which) has a history of destroying the local economy and hurting it, not helping it," he said.

"Wal-Mart draws ire even in poor parts of Brooklyn", Yahoo News

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