What Walmart Really Costs Communities | The Financial Impact of Walmart | BusinessNewsDaily.com
It’s more bad news for Walmart. After a New York Times story alleged that Walmart bribed officials in Mexico to allow the company to open stores in that country, another new report reveals exactly how much it costs a community in dollars and cents when Walmart comes to town.
The research, done by a Northwest community group, estimates that one Walmart store, which is set to open in a Washington neighborhood, will decrease the community’s economic output over 20 years by an estimated $13 million. It also estimates the Walmart will cost the community an additional $14 million in lost wages over the next 20 years.
“We know now the true economic impact a Walmart store has on a neighborhood when it moves in,” Christopher Fowler, who conducted the research for Puget Sound Sage, said. “The research shows that the negative impact is due to the use of the Walmart business model. A new ‘generic’ grocery store does not equal economic harm, but a new Walmart does.”
“When Walmart comes to town, it is going to reallocate sales and its impact is going to be a function of the difference between what is currently being paid in wages at the existing stores and what Walmart pays,” Fowler said.
That redistribution in sales is estimated at $25 million annually, according to the research. This means that nearly $660,000 in wages is lost annually.
“Walmart may say they help people ‘Live Better,'” said David West, executive director of Puget Sound Sage, a nonprofit public policy organization that looks at regional economic issues. “But this study shows that communities will be much worse off, with lower wages and less money in the community, after a Walmart opens.”
The losses are tied mainly to the low wages Walmart pays its employees.
“These impacts stem from the low wages Walmart pays to its hourly associates compared to the wages earned by comparable employees of existing retail grocery stores,” the researchers said. “The difference in wages, which we estimate to be at least $3 per hour, has the capacity to impact not only the workers themselves, but also the people from whom they purchase goods and services.”
Strange Random Walmart Quote:
- WalMex or WalMart same stuff different country (bzerob1.wordpress.com)
- Walmart: Cooperating in bribery probe (upi.com)
- WalMart Bribery in México and all over the World (doctoramarthacastro.wordpress.com)
- Walmart hid bribery in Mexico – report (business.inquirer.net)
- Walmart May Have Spent $24 Million in Mexican Bribes [Walmart] (gawker.com)
- Walmart hit by bribery probe, shares plunge (wnd.com)
- Advice From Walmart Exec at Center of Scandal: ‘Personal Integrity’ is Key (propublica.org)
- DEAR WALMART: If The Bribery Story Is True, You Need To Fire Your CEO (WMT) (businessinsider.com)
Posted on April 24, 2012, in Article and tagged Arthur Laffer, Bribery, Christopher Fowler, David West, Mexico, New York Times, United States, Wal-Mart, Walmart, Washington. Bookmark the permalink. Leave a comment.