Monday, September 21, 2015

More Evidence of Why Walmart Doesn't Help Local Economies

I have written in the past about how Walmart hurts local economies and local governments should be wary of giving them permits. Their low wages depress wages in general. Their employees need government programs, such as food stamps, to feed their families. They drive out local businesses that reinvest their profits in their community. Walmart does not. Walmart buys most of its products from China, not American companies.

Now the Harvard Business Review reports:

When It Comes to Towns’ Tax Bases, Not All Retailers Are the Same

A new Target store raises its host municipality’s per-acre tax base by about 2.82% and the nearest town’s by about 5.87%, whereas Walmart openings have no effect on the tax base, according to a study of dozens of store openings in New Jersey by Donald Vandegrift of The College of New Jersey and John Loyer of Aeropostale. In comparison with deep-discounter Walmart, Target attracts higher-income customers and, consequently, more and better retail outlets; higher-income shoppers apparently move to municipalities offering Target stores, thus boosting the residential tax base, the researchers say.