[Vision2020] The Wal-Mart Effect on Moscow
joekc at adelphia.net
joekc at adelphia.net
Sun Feb 12 06:30:15 PST 2006
It is just incorrect to think that ANY student makes a decision about where to go to school based on whether or not there is a Super Wal-Mart in the town, as opposed to just a regular, old Wal-Mart.
And if you think that your argument is correct, Donovan, why not work with Bob Stout and other council members to do something about affordable housing in Moscow? That would make a real difference.
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Joe Campbell
---- Donovan Arnold <donovanjarnold2005 at yahoo.com> wrote:
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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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