Small business vs Big business?

Question

A town council meets. The unemployment rate is the same as the national average. It's a somewhat small town (pop<10000) and the economy is stable, though not milk and honey. I'm not sure if this is exactly how it happens, but play along.

A large retail chain wishes to build a store in the town. Doing so will ruin many local small businesses (Walmart vs Wilma's apparel). Some will have to shut down and others will have to fire workers. But, the new store will offer slightly more jobs than those fired.

Should they be allowed to do so? At the cost of local culture?

I'm talking about the political choices of economic plans. So it is political, just on a smaller scale.

Answer 1

Here's the difference.
When the mom & pop stores operate, all the profits of the business stay in the community. The mom & pop owners spend their incomes within the community. There is an economic balance.
Wal mart moves in and takes the customer base and crates a few more low income jobs for the community. The profits of the store, however, go back to corporate heaquarters. The end result is less wealth in the community. This fact is disguised by more low income jobs. But all the profits for the goods the people in the town buy leave the community. Wealth is slowly drained.

Now, you tell me if it should be allowed?

Answer 2

Depends on if the local business employees are on medicaid or not, because they will be as Walmart employees.

Answer 3

Economics question, not political question.

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