[Vision2020] Wal-Mart Equals Higher Poverty Rates

Sun May 21 20:40:31 PDT 2006

Mark,

The point of the study is not what any particular 
Walamrt looks like architecturally or even what 
goods they sell in an upscale community: it's 
what happens to the people who work there and the 
people displaced by Walmart entering the local 
retail community with its predatory practices.

Mark Solomon

At 8:06 PM -0700 5/21/06, Mark Seman wrote:
>Moscow can be anywhere on the bell curve it 
>wants.  A Wal-Mart supercenter is in Scottsdale, 
>AZ.  Wal-Mart had to shift from its status quo 
>model to do so.  Any community can set standards 
>for which Wal-Mart would be considered 
>acceptable.  To dismiss Wal-Mart because of its 
>past business model is not being proactive.  Any 
>dog can learn new tricks.  Set the parameters 
>and see if Wal-Mart steps up to the plate.  If 
>it's not willing, then it can take a hike. 
>Maybe that's already been done?  Or maybe 
>Wal-mart is just not wanted or needed in Moscow.
>
>Mark
>
>-----Original Message-----
>From: vision2020-bounces at moscow.com 
>[mailto:vision2020-bounces at moscow.com]On Behalf 
>Of Mark Solomon
>Sent: Sunday, May 21, 2006 4:58 PM
>To: Jerry Weitz; vision2020 at moscow.com
>Subject: Re: [Vision2020] Wal-Mart Equals Higher Poverty Rates
>
>Thanks, Jerry, for the model review. As you 
>rightly point out, any general study's 
>conclusions have to be treated with a grain of 
>salt when applied to a specific, in this case, 
>local situation. However, that does not diminish 
>the study's general conclusion that was derived 
>using data related to all (about 3000 at the 
>time of the study) Walmart stores. The authors 
>note:
>
>Wal-Mart avoids counties with higher population 
>density (at least until recently) in part
>because of higher land costs in these counties, 
>and while the chain has traditionally located in
>rural communities, it also avoids less populated, more remote places.
>
>The above appears to describe Latah County, and 
>Moscow in particular, fairly well. We may not be 
>in the center of the study's Bell curve, but I 
>bet we're not too far off to either side.
>
>Mark
>
>At 4:22 PM -0700 5/21/06, Jerry Weitz wrote:
>
>>I reviewed the Wal-Mart and County-Wide Poverty 
>>and was impressed that they used a two stage 
>>regression model that we use in 
>>Medicine/dentistry for epidemiological studies 
>>with multivariates.  Briefly and I am not an 
>>expert, the first stage (an unstructured 
>>polytomous logistic regression approach) models 
>>the effects of covariates that can be defined 
>>by cross-classifications.  The second stage 
>>(the subtype-specific regression parameters of 
>>the first stage model) are modeled by using 
>>the multivariate structure of the subtype 
>>definitions and the possible ordering of 
>>continuous naturing of certain characteristics. 
>>Thus the second stage modeling reduces 
>>dimensional biases.  The complexity of 
>>variables in economics causes a study such as 
>>this to be suspect and the authors conclusions 
>>kind of let them off the hook in that "Wal-Mart 
>>creates both benefits and costs to 
>>communities."   So if there are omitted 
>>variables and a spacial dependence bias, then 
>>at least  two stage modeling methodology can be 
>>efficiently corrected.  What was missing for 
>>our region was the effect of large government 
>>programs such as CRP: CRP effects on small ag 
>>business such as repair shops, farm supply, 
>>equipment dealerships, fertilizer companies, 
>>land value and sales etc.  Other variates such 
>>as having a large student population relative 
>>the general population,  a declining forest 
>>industry, relative lack of large private sector 
>>businesses may be variates that would require 
>>future inquiry.
>>
>>From my world  examples:  PSA for Prostate 
>>Cancer Screening.  Recall that "an epidimic of 
>>prostate cancer" occured in the media since PSA 
>>introduction.  However the question is:  would 
>>have Noble Laureate Linus Pauling who died at 
>>93 with prostate cancer would have lived longer 
>>with therapies administered to him with a PSA 
>>test at age 60 or would the therapies caused 
>>him to die earlier?   Another, would CT for 
>>lung cancer screening for Peter Jennings who 
>>died at 67 caused him to live longer? 
>>Presently U. S. Preventive Services Task Force 
>>states "current data do not support screening 
>>for lung cancer with any method."   Or another 
>>drug study: Bextra (cox-2inhibitor) where the 
>>contol proved to be flawed yet the compaarative 
>>study was not flawed.  The drug was thrown out 
>>of the market. 
>>
>>Hence studies are easlily biased and can lead 
>>to bad information/actions.  The question to be 
>>answered:  Would it be in the interest of 
>>Moscow to have commercial development shift to 
>>the corridor?  Would this help or hinder the 
>>school district revenues since the district has 
>>now stabilized enrollment after significant ADA 
>>declines from the mid 90's. jerry
>>
>>
>>
>>
>>
>>At 03:32 PM 5/17/06, Mark Solomon wrote:
>>
>>>  Social Science Quarterly Publishes Study: 
>>>Wal-Mart Equals Higher Poverty Rates
>>>
>>>Study claims Wal-Mart raises poverty rates in 
>>>the counties where its stores are located.
>>>
>>>MALDEN, Mass./EWORLDWIRE/May 17, 2006 --- A 
>>>study published in the latest issue of Social 
>>>Science Quarterly is the first to examine the 
>>>effect of Wal-Mart stores on poverty rates. 
>>>The study found that nationwide an estimated 
>>>20,000 families have fallen below the official 
>>>poverty line as a result of the chain's 
>>>expansion.
>>>
>>
>>During the last decade, dependence on the food 
>>stamp program nationwide increased by eight 
>>percent while in counties with Wal-Mart stores, 
>>the increase was almost twice as large at 15.3 
>>percent.
>>
>>"After controlling for other factors 
>>determining changes in the poverty rate over 
>>time, we find that counties with more initial 
>>Wal-Mart stores and with more additions of 
>>stores between 1987 and 1998 experienced 
>>greater increases (or smaller decreases) in 
>>family poverty rates during the 1990's economic 
>>boom period," stated Stephan Goetz a professor 
>>of Agricultural and Regional Economics at The 
>>Pennsylvania State University. Although 
>>Wal-Mart employs many people living in its 
>>communities, for most, the hours worked and the 
>>wages paid do not help these families 
>>transition out of poverty.
>>
>>Another effect is that the closing of "mom and 
>>pop" stores following the appearance of a store 
>>leads to the closing of local businesses that 
>>previously supplied those stores including, 
>>wholesalers, transporters, logistics providers, 
>>accountants, lawyers and others. Goetz states, 
>>"By displacing the local class of 
>>entrepreneurs, the Wal-Mart chain also destroys 
>>local leadership capacity." Social Science 
>>Quartely author's encourage community leaders 
>>to think about programs and policies in 
>>anticipation of helping those displaced by the 
>>arrival of the chain.
>>
>>This study is published in the June issue of 
>>Social Science Quarterly. Media wishing to 
>>receive a PDF of this article please contact 
>>journalnews at bos.blackwellpublishing.net.
>>
>>Connecting the Social Sciences, Social Science 
>>Quarterly is nationally recognized as one of 
>>the top journals in the field. It is published 
>>on behalf of the Southwestern Social Science 
>>Association.
>>
>>Dr. Stephan J. Goetz is a professor of 
>>Agricultural and Regional Economics at The 
>>Pennsylvania State University. Before coming to 
>>Penn State in 1999, he served on the faculty at 
>>the University of Kentucky for nine years with 
>>research and teaching responsibilities in 
>>economic development. Dr. Goetz is available 
>>for questions and interviews.
>>
>>Blackwell Publishing is the world's leading 
>>society publisher, partnering with 665 academic 
>>and professional societies. Blackwell publishes 
>>over 800 journals and, to date, has published 
>>more than 6,000 books, across a wide range of 
>>academic, medical and professional subjects.
>>
>>    HTML: http://newsroom.eworldwire.com/releases/14555
>>    PDF: http://newsroom.eworldwire.com/pdf/14555.pdf
>>    ONLINE NEWSROOM: http://newsroom.eworldwire.com/309511.htm
>>    NEWSROOM RSS FEED: http://newsroom.eworldwire.com/xml/newsrooms/309511.xml
>>    LOGO: http://newsroom.eworldwire.com/309511.htm
>>
>>CONTACT:
>>Jill Yablonski
>>Blackwell Publishing
>>350 Main Steet
>>Floor 6
>>Malden, MA 02148
>>PHONE. 781-388-8448
>>EMAIL: JournalNews at bos.blackwellpublishing.net
>>SOURCE: Blackwell Publishing
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