Wednesday, September 26, 2012

Radiating Death

  • "No matter which direction you go from Walmart, there's a very high rate of business closures in the immediate vicinity, and the further away you get there's less and less," says University of Illinois Chicago economics professor Joe Persky, one of the authors of the study, which was just published in Economic Development Quarterly
  • The per-mile closure rate increase for drugstores is almost 20 percent. For home furnishings, it's about 15 percent. For hardware stores, it's about 18 percent per mile. For toys, it's more than 25 percent per mile. The research also shows that during the study period, from 2006 to 2008, overall sales tax revenues went down in the two ZIP codes closest to or encompassing the Walmart. 
  • By 2008, the amount of jobs lost because of store closures was just about the same as those created by the Walmart store's opening. It was, Persky says, a wash. "You may have reasons to want Walmart and you may have reasons not to want Walmart, but economic development is not one of those reasons," Persky says. "And yet that's been, in many cases, the primary argument for bringing Walmart to the city."  
The Atlantic Cities: Radiating Death: How Walmart Displaces Nearby Small Businesses

4 comments:

SS said...

LOL,
More nonsense from a leftist rag. Walmart is open 24/7, offers everything from milk to Plasma TVs to hunting rifles. No wonder the "mom and pop" stores get crushed.

And in our country, the "mom and pop" approach has 40 pc of fruits and vegetables rotting, sky-high inflation, tons of middlemen, a poor or non-existent supply chain.

Why do so many Luddites drink the kirana kool-aid and bash organized retail is beyond me.

sansk said...

I guess few people have heard/understood Jiseph Schumpeter

Inferno said...

The kool-aid of low prices... society is beginning to realize that it comes at a high price.

sansk said...

This drama of mom and pop shops getting closed is big load of crap.

I recommend people read and try to understand what Henry Hezlitt and Joseph Schumpeter have told about the subject.

People don't even seem to consider the potential time saving achieved when all the shopping can be done in one or two trips to a WalMart/Tesco. The alternate is what I am facing everyday...going to local shop that comes with no assurance quality, things sold beyond after expiry date, and lot of things simply not available.

The so-called radiating death is a NECESSARY component of free market. Without it the labour and resources involved in grossly inefficient enterprise will never be freed for better,more consumer friendly and more efficient enterprise.

Creative Destruction is Creative.
I am surprised how people who claim to be Hindu and have a rational outlook can be taken for a ride due to incomplete understanding of economic matters.

Being a BJP supporter, I am particularly depressed to realize that their support for free markets, which is the ONLY way of undoing what Stalinists have to India is not Iron Clad but more like a passing fad.