[Vision2020] The Wal-Mart Effect on Moscow

[Donovan Arnold]

        The Wal-Mart Effect on Moscow 
      Many of Wal-Mart’s detractors erroneous like to make the  claim that Moscow’s  quality of life and economy is based upon the small number of locally owned and  operated retail establishments. But any rational person understands that Moscow’s economy and job market is primarily based upon  the University of   Idaho. The survival of  local businesses depends upon the wealth passed on from the University of Idaho.  
           
  The wealth of the University is dependent upon federal and  state dollars allocated to it based on student enrollment. Enrollment is based  on two factors, the number of students that stay at UI, or retention rate, and  the number of new students. The retention rate, according to Michael Griffle,  the Director of University Residents at UI, has dropped from 90% to below 77%.  The primary reason is because of the lack of affordability of living in Moscow. In addition, according  to a recent report put out by UI President Tim White, the new students being  obtained by the University are increasingly minority, non-traditional, and  first generation students, or students with generally less means and wealth. 
           
  A lower student enrollment will reduce the amount of money  and resources to Moscow  from the federal and state government. This in turn will reduce the amount of  money that will be spent on local businesses. It will also reduce the number of  jobs at the University and in turn the local private business sector of the community.  
           
  While many can successfully argue that tuition and fees at  UI remains among the lowest, they would be fighting a losing battle to claim  that Moscow is an  inexpensive to live. Rent in Moscow  is one the highest in the state. Gas and utilities are also very prohibitive.  When other costs are added in, such as few public transportation options,  increases on food, video rentals, and a $5.15 an minimum wage, Moscow becomes truly prohibitive and  inhospitable for many poor college students. 
           
  Wal-Mart provides at least some relief from the unaffordable  Moscow.  College students need the $99 futon, the $40  microwave, the $35 DVD player, and the $5 lamp. They depend upon it. They do  not care if the thing breaks within two years; they only need it till May. They  do not have the money to buy the $250 bed, the $100 microwave or the nice DVD  player, nor do they have the resources and time to haul it all home in nine  months and back again in two and 1/2 months. 
           
  Moscow  businesses are not in competition with a Wal-Mart just at 185 Warbonnet Drive. They are also in  competition with a Super Wal-Mart near BSU, a Super Wal-Mart near ISU, and a Super  Wal-Mart near every community college and university that caters to lower and  middle income students.  Ignoring this  fact does not make it untrue. The best survival for local businesses is to  allow Wal-Mart to meet the basic needs of college students so enrollment stays  up while they provide services and goods Wal-Mart does not provide. Not  providing goods and services to students that fits the student budget in the  hopes that it will force them to pay a higher amount of money at a local shop  is a poor long term strategy and is obviously failing as UI students opt to  finish their education in a more affordable town. 
           
  Local citizens concerned about local businesses need to turn  their energy towards retention and recruitment for UI and reducing the costs of  living for college students as well as buying locally when they can afford it.  $1000 a month for rent and $5 for a pound a beef in a town that pays $5.55 an  hour will kill your local economy more quickly then any Super Wal-Mart. Killing  competition inside Moscow’s boarders kills Moscow’s competitiveness  outside its boarders.  UI and Moscow need a Super  Wal-Mart to remain competitive with other universities and colleges. 
               
  -Donovan J Arnold
    
		
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