[Vision2020] Wal-Mart Equals Higher Poverty Rates
Mark Seman
FCS at Moscow.com
Sun May 21 21:50:50 PDT 2006
RE: [Vision2020] Wal-Mart Equals Higher Poverty RatesI am not well versed in
any studies of Wal-Mart, but I find it difficult to understand how Wal-Mart
could be so virulant as to dessimate the fabric of a community. There
surely would be impacts to local businesses, the surrounding neighborhood,
and other aspects of a community, but if the gross effect was negative,
Wal-Mart would not be self-sustaining. I do understand some of the negative
community impacts of a Wal-Mart insertion and those are some of the issues
to be used to determine a proper fit within a community.
So if it's the business practices of the organization that cannot be aligned
with the wants of the community, then access should be denied. I don't know
whether Wal-Mart University would be filling a need for Moscow or whether
Moscow be filling a need for Wal-Mart University, but I wonder: "Does Moscow
want an alternative - does it want (need) additional something(s) to help
provide a living for its citizens, or is the status quo o.k.?"
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 8:41 PM
To: Mark Seman; vision2020 at moscow.com
Subject: RE: [Vision2020] Wal-Mart Equals Higher Poverty Rates
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
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LOGO: http://newsroom.eworldwire.com/309511.htm
CONTACT:
Jill Yablonski
Blackwell Publishing
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Floor 6
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PHONE. 781-388-8448
EMAIL: JournalNews at bos.blackwellpublishing.net
SOURCE: Blackwell Publishing
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