116 Questions
What is Wal-Mart often accused of doing to downtown areas?
Killing jobs and downtowns
Why do banks fear Wal-Mart?
Because it might offer banking services
What is the approximate revenue of Wal-Mart in fiscal 2007?
$344 billion
What happens to the original store when Wal-Mart upsizes to a supercenter?
It gets abandoned and left empty
Why do critics argue that Wal-Mart is bad for local communities?
Because it destroys community character
What does Wal-Mart often do when faced with property tax assessments?
Fights the assessments in court
What is one benefit that some argue Wal-Mart can bring to a community?
A force for good
What is one reason why critics argue that Wal-Mart is bad for workers?
It requires work off the clock
What percentage of the country's population lives within 15 miles of a Wal-Mart?
90%
What is the estimated percentage of retail and food service sales in the United States attributed to Wal-Mart in fiscal year 2007?
6%
What is the name of the musical satire that premiered in Madison, Wis., that is about Wal-Mart?
Walmartopia
What is the number of suppliers participating in Wal-Mart's pilot program to measure and reduce their carbon footprint?
A small number
What percentage of people in a 2005 survey said they had an unfavorable view of Wal-Mart?
31%
What year did Wal-Mart become the nation's largest grocery store?
2002
What is the name of the demographic group identified in the text as being a key Wal-Mart customer?
Wal-Mart Mom
What percentage of Americans shopped at a Wal-Mart in 2005?
Five out of six
What is the name of the publication that conducted a survey on public perception of Wal-Mart?
Pew Research Center for the People and the Press
What is the percentage of solid waste that Wal-Mart aims to cut from its U.S. stores by next October?
25%
What aspect of community health is being measured in this study?
Firms, income, population, and poverty
What is the time period for which data was collected in the study?
1985-2005
How many counties were studied in total?
89
What is the conclusion about Wal-Mart's effect on local firms and jobs?
It strengthens local firms and creates jobs
What happened to retail earnings per job in Wal-Mart counties?
They fell, but by less than in non-Wal-Mart counties
What is the conclusion about Wal-Mart's effect on poverty rates?
It slows down the decline of poverty rates
What is the conclusion about Wal-Mart's effect on county population growth?
It has no effect on population growth
What is the result of the study regarding Wal-Mart's effect on a county's economic success?
Wal-Mart has a slight positive effect
What is the characteristic of counties where Wal-Mart tends to locate?
Larger population
What percentage of counties with a population between 30,000 and 40,000 had a Wal-Mart by 2005?
80%
What was the population of counties that did not see a Wal-Mart come to town over the next 20 years?
Under 10,000
What was the characteristic of counties that would get a Wal-Mart in the future?
Higher levels of population and employment
What was the difference in per capita income levels between Wal-Mart and non-Wal-Mart counties?
Basicly even
What was the trend in retail sectors in counties that would later get a Wal-Mart?
Larger
What was the growth of personal income in Wal-Mart and non-Wal-Mart counties over 20 years?
Virtually identical
What was the characteristic of population growth in Wal-Mart counties?
Much higher than non-Wal-Mart counties
What was the effect of Wal-Mart's presence on population in either direction?
It had little influence
What was the characteristic of median employment growth in Wal-Mart counties?
Notably higher
What was the trend in earnings per job in Wal-Mart counties from 1985 to 2005?
Grew faster
What was the characteristic of total compensation in non-Wal-Mart counties?
Saw stronger growth
What was the timeframe for the initial analysis of Wal-Mart's effect on local economies?
One year before and five years after opening
What was found to be the case for Wal-Mart counties in terms of income growth prior to the store opening?
They showed little evidence of stronger income growth
What was the trend in poverty rates across the Ninth District from 1989 to 2004?
Poverty rates dropped
How did the poverty rates in Wal-Mart counties compare to non-Wal-Mart counties?
They dropped less
What was investigated as a possible factor in the poverty trends in Wal-Mart counties?
Immigrant population flows
What was the finding regarding the role of immigrant population flows in the poverty trends?
They had little evidence of playing a role
What is the limitation of the fedgazette findings?
They are not causal in nature
What is one aspect of the analysis that is not discussed?
The savings local consumers realize
What is the overall conclusion of the analysis regarding Wal-Mart's impact on local economies?
Wal-Mart's impact is small and mixed
What is suggested as a possible factor in determining the long-run growth prospects of local communities?
All of the above
What is the primary observation about general merchandise stores in Wal-Mart counties compared to non-Wal-Mart counties?
Both had a similar decline in stores, about half a store on average.
What is the limitation of analyzing the effect of Wal-Mart on general merchandise stores?
The federal government changed its business classification system in 1997.
What is the trend in median establishment growth in Wal-Mart counties compared to non-Wal-Mart counties?
Wal-Mart counties had stronger growth, especially among smaller employers.
What is the conclusion about the presence or absence of Wal-Mart on business growth in a county?
The presence or absence of Wal-Mart is neither an obvious anchor nor a hot air balloon for business growth.
What is the observation about taxable retail sales in Wal-Mart counties compared to non-Wal-Mart counties in Minnesota?
Taxable retail sales grew faster in Wal-Mart counties.
What is the limitation of the sales tax data analysis across states?
Tax rates and items eligible for sales tax are different among states and changed over time.
What is the effect of Wal-Mart on employment in Wal-Mart counties compared to non-Wal-Mart counties?
Employment increased in Wal-Mart counties, especially in retail.
What is the trend in earnings per job in Wal-Mart counties compared to non-Wal-Mart counties?
Earnings per job were higher in Wal-Mart counties, especially in retail.
What is the finding about the effect of Wal-Mart on average personal income and population over a two-year window?
Wal-Mart had little effect on average personal income and population.
What is the primary conclusion about the effect of Wal-Mart on local businesses and economies?
The effect of Wal-Mart on local businesses and economies is inconclusive.
What is the percentage of the population that lives within 15 miles of a Wal-Mart, according to the text?
90%
What is the percentage of retail and food service sales in the United States attributed to Wal-Mart in fiscal year 2007, according to company figures and U.S. Census Bureau data?
6%
What is the name of the demographic group identified in the text as being a key Wal-Mart customer?
Wal-Mart mom
What is the commitment made by Wal-Mart to reduce solid waste from its U.S. stores by next October?
25%
What is the energy efficiency improvement achieved by Wal-Mart in its buildings and truck fleets since 2005?
15%
What is the approximate number of suppliers participating in Wal-Mart's pilot program to measure and reduce their carbon footprint?
A small number
What is the title of the musical satire that premiered in Madison, Wis. and is about Wal-Mart?
Walmartopia
What percentage of Americans shopped at a Wal-Mart in 2005, according to the text?
5/6
What is the year Wal-Mart became the nation's largest grocery store?
2002
What is the percentage of people in a 2005 survey who had an unfavorable view of Wal-Mart?
31%
What is the primary focus of the study?
The economic influence of Wal-Mart on communities
What is the outcome of the study regarding Wal-Mart's effect on firms and jobs?
Wal-Mart leads to stronger firm growth and employment
What is the primary source of controversy surrounding Wal-Mart's presence in local communities?
Its economic influence on the community
What is the conclusion about Wal-Mart's effect on poverty rates?
Poverty rates decline more in non-Wal-Mart counties
What is the estimated revenue of Wal-Mart in fiscal 2007, making it the largest retailer in the world?
$344 billion
What is the ultimate consequence of Wal-Mart's vacating its original store when it upsizes to a supercenter?
The old store is left vacant and abandoned
What is the characteristic of counties where Wal-Mart tends to locate?
Larger population counties
What is the primary reason why banks fear Wal-Mart's expansion into banking services?
Wal-Mart's potential to disrupt the traditional banking industry
What is the conclusion about Wal-Mart's effect on county population growth?
Wal-Mart has no noticeable effect on population growth
What is the result of the study regarding Wal-Mart's effect on a county's economic success?
Wal-Mart's presence has little or no predictive power on economic success
What is the ultimate consequence of Wal-Mart's strong-arming local communities for infrastructure upgrades?
The local community is forced to provide infrastructure upgrades at its own expense
What is the primary argument made by those who argue that Wal-Mart can be a force for good in local communities?
Wal-Mart creates jobs and stimulates economic growth
What is the conclusion about Wal-Mart's overall effect on communities?
Wal-Mart has a slightly positive effect on communities
What is the primary criticism made by those who argue that Wal-Mart is bad for workers?
All of the above
What is the result of the study regarding retail earnings per job?
Retail earnings per job fell in virtually all counties studied
What is the overall impact of Wal-Mart's presence on local communities, according to critics?
It destroys community character and kills jobs
What is the characteristic of employment growth rates among the studied counties?
Employment growth rates varied among the counties studied
What is the study's methodology?
Comparing 40 Wal-Mart counties with 49 non-Wal-Mart counties
What can be inferred from the analysis about Wal-Mart's effect on local economies?
Wal-Mart's effect on local economies is smaller than perceived and is influenced by various local factors.
What did the analysis find about poverty rates in Wal-Mart counties compared to non-Wal-Mart counties?
Poverty rates decreased less in Wal-Mart counties than non-Wal-Mart counties.
What was investigated as a possible factor in the poverty trends in Wal-Mart counties?
Immigrant population flows
What is a limitation of the fedgazette findings?
They do not prove a direct cause-and-effect relationship between Wal-Mart and local economic trends.
What is suggested as a possible factor in determining the long-run growth prospects of local communities?
Education levels and infrastructure investments
What was the trend in poverty rates across the Ninth District from 1989 to 2004?
Poverty rates decreased significantly.
What did the analysis find about Wal-Mart counties prior to the store opening?
They showed no difference in income growth leading into the opening of the Wal-Mart.
What is one aspect of the analysis that is not discussed?
The savings local consumers realize by having Wal-Mart in town
What is the overall conclusion of the analysis regarding Wal-Mart's impact on local economies?
Wal-Mart's impact on local economies is smaller than perceived and influenced by local factors.
What did the analysis find about the relationship between immigrant population flows and poverty trends in Wal-Mart counties?
The data shows little evidence that changes in the foreign-born population play a major role in the differential change in poverty within Wal-Mart counties.
What was the characteristic of counties with a population under 10,000 in 1985?
They tended to have lower levels of population and employment
What was the trend in personal income growth in Wal-Mart and non-Wal-Mart counties over 20 years?
Personal income growth was virtually identical in both
What was the characteristic of median employment growth in Wal-Mart counties compared to non-Wal-Mart counties?
It was higher in Wal-Mart counties
What was the trend in earnings per job in the retail sector in Wal-Mart counties from 1985 to 2005?
It decreased slightly
What was the characteristic of total compensation in non-Wal-Mart counties compared to Wal-Mart counties?
It was higher in non-Wal-Mart counties
What was the conclusion about Wal-Mart's effect on population growth in either direction?
Wal-Mart's presence had little influence on population growth in either direction
What was the characteristic of counties that would get a Wal-Mart in the future?
They had higher levels of population and employment
What was the trend in retail sectors in counties that would later get a Wal-Mart?
They were larger in counties that would get a Wal-Mart
What was the difference in per capita income levels between Wal-Mart and non-Wal-Mart counties?
Per capita income levels were basically even between Wal-Mart and non-Wal-Mart counties
What was the conclusion about Wal-Mart's effect on employment and earnings?
Wal-Mart's presence had a positive effect on employment and earnings
What is the primary obstacle to deriving strong conclusions about the impact of Wal-Mart on general merchandise stores?
All of the above
What trend is observed in the growth of median establishment in Wal-Mart counties compared to non-Wal-Mart counties?
Median establishment growth is stronger in Wal-Mart counties, particularly among smaller employers
What is the finding regarding the correlation between the presence of Wal-Mart and growth in taxable sales in Minnesota?
A positive correlation is observed
What is the limitation of the sales tax data analysis?
The number of observations in each state is small
What is the finding regarding the impact of Wal-Mart on employment in Wal-Mart counties compared to non-Wal-Mart counties?
Employment increases in Wal-Mart counties, particularly in retail
What is the characteristic of the growth rate of earnings per job in Wal-Mart counties compared to non-Wal-Mart counties?
The growth rate is faster in Wal-Mart counties, particularly in retail
What is the conclusion regarding the impact of Wal-Mart on business growth in a county?
The presence or absence of Wal-Mart is neither an obvious anchor nor a hot air balloon for business growth in a county
What is the limitation of the analysis of the impact of Wal-Mart on general merchandise stores?
The number of firms in this category is comparatively small at the county level
What is the trend observed in the aggregate establishment growth in Wal-Mart counties compared to non-Wal-Mart counties?
Aggregate establishment growth is stronger in Wal-Mart counties, but only if the top five counties are removed
What is the primary conclusion regarding the impact of Wal-Mart on local businesses?
The impact of Wal-Mart on local businesses is mixed and depends on various factors
Study Notes
The Wal-Mart Effect: Poison or Antidote for Local Communities?
- Wal-Mart's Controversial Reputation*
- Wal-Mart is the largest retailer in the United States in terms of revenue, with $344 billion in fiscal 2007
- It is often criticized for killing jobs and downtowns, destroying community character, and being overly aggressive in stopping the formation of labor unions
- Economic Impact of Wal-Mart*
- Research suggests that Wal-Mart's economic influence is significant, but not necessarily negative
- Firm growth, employment, and total earnings were stronger in Wal-Mart counties compared to non-Wal-Mart counties
- Poverty rates declined in most counties, but declined less in Wal-Mart counties
- Wal-Mart's presence had little influence on population growth and income per person
Characteristics of Wal-Mart Counties
- About two-thirds of Wal-Mart counties had their store in place by the early 1990s
- Wal-Mart tends to locate in larger counties with higher population and employment rates
- Retail sectors were larger in counties that would later get a Wal-Mart
Growth Patterns in Wal-Mart Counties
- Personal income growth was virtually identical in Wal-Mart and non-Wal-Mart counties
- Population growth was a mixed bag, with median growth higher in Wal-Mart counties, but aggregate growth similar in both groups
- Employment growth was higher in Wal-Mart counties, especially in the retail sector
- Job earnings grew faster in Wal-Mart counties, but fell in the retail sector
Business Growth and Competition
- Data on county establishments do not support the notion that Wal-Mart tramples local businesses
- Median establishment growth was stronger in Wal-Mart counties, particularly among smaller employers
- Aggregate establishment growth was higher in non-Wal-Mart counties, but influenced by a small number of booming counties
Sales Tax Data and Revenue
- Taxable retail sales grew faster in Wal-Mart counties compared to non-Wal-Mart counties, especially in Minnesota
- Wal-Mart likely attracts shoppers from neighboring counties, inducing more frequent shopping, but may also squeeze out local retailers
Poverty and Immigration
- Poverty rates dropped less in Wal-Mart counties compared to non-Wal-Mart counties
- Changes in the foreign-born population do not play a major role in the differential change in poverty within the two sets of counties### Wal-Mart's Impact on Local Communities
- Conventional wisdom about Wal-Mart's negative effects on local communities is challenged by this analysis.
- The analysis focuses on measures of community health, excluding the benefits of consumer savings from having Wal-Mart in the area.
Balanced Findings
- The analysis reveals a mix of positive and negative outcomes, but all effects are small.
- The net impact of Wal-Mart on a county's health is likely smaller than commonly perceived.
Dynamic Nature of Local Economies
- Local economies are dynamic, constantly changing, and extend beyond retail borders.
- Firms, jobs, and people come and go regularly due to various reasons.
- Local economic idiosyncrasies, such as education levels, infrastructure, and entrepreneurial culture, may play a larger role in determining long-run growth prospects.
The Wal-Mart Effect: Poison or Antidote for Local Communities?
- Wal-Mart's Controversial Reputation*
- Wal-Mart is the largest retailer in the United States in terms of revenue, with $344 billion in fiscal 2007
- It is often criticized for killing jobs and downtowns, destroying community character, and being overly aggressive in stopping the formation of labor unions
- Economic Impact of Wal-Mart*
- Research suggests that Wal-Mart's economic influence is significant, but not necessarily negative
- Firm growth, employment, and total earnings were stronger in Wal-Mart counties compared to non-Wal-Mart counties
- Poverty rates declined in most counties, but declined less in Wal-Mart counties
- Wal-Mart's presence had little influence on population growth and income per person
Characteristics of Wal-Mart Counties
- About two-thirds of Wal-Mart counties had their store in place by the early 1990s
- Wal-Mart tends to locate in larger counties with higher population and employment rates
- Retail sectors were larger in counties that would later get a Wal-Mart
Growth Patterns in Wal-Mart Counties
- Personal income growth was virtually identical in Wal-Mart and non-Wal-Mart counties
- Population growth was a mixed bag, with median growth higher in Wal-Mart counties, but aggregate growth similar in both groups
- Employment growth was higher in Wal-Mart counties, especially in the retail sector
- Job earnings grew faster in Wal-Mart counties, but fell in the retail sector
Business Growth and Competition
- Data on county establishments do not support the notion that Wal-Mart tramples local businesses
- Median establishment growth was stronger in Wal-Mart counties, particularly among smaller employers
- Aggregate establishment growth was higher in non-Wal-Mart counties, but influenced by a small number of booming counties
Sales Tax Data and Revenue
- Taxable retail sales grew faster in Wal-Mart counties compared to non-Wal-Mart counties, especially in Minnesota
- Wal-Mart likely attracts shoppers from neighboring counties, inducing more frequent shopping, but may also squeeze out local retailers
Poverty and Immigration
- Poverty rates dropped less in Wal-Mart counties compared to non-Wal-Mart counties
- Changes in the foreign-born population do not play a major role in the differential change in poverty within the two sets of counties### Wal-Mart's Impact on Local Communities
- Conventional wisdom about Wal-Mart's negative effects on local communities is challenged by this analysis.
- The analysis focuses on measures of community health, excluding the benefits of consumer savings from having Wal-Mart in the area.
Balanced Findings
- The analysis reveals a mix of positive and negative outcomes, but all effects are small.
- The net impact of Wal-Mart on a county's health is likely smaller than commonly perceived.
Dynamic Nature of Local Economies
- Local economies are dynamic, constantly changing, and extend beyond retail borders.
- Firms, jobs, and people come and go regularly due to various reasons.
- Local economic idiosyncrasies, such as education levels, infrastructure, and entrepreneurial culture, may play a larger role in determining long-run growth prospects.
Explore the impact of Wal-Mart on local communities, from economic to social effects. Is it a boon or a bane?
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