Big Box stores like Wal-Mart and Target are controversial when they plan to build in a community. Supporters argue they create jobs and generate sales taxes, while opponents claim they cause local businesses to lose money and increase traffic. The debate continues.
Big Box stores like Wal-Mart, Target, Costco, Sam’s Club and Home Depot, usually encounter a lot of resistance when they plan to build in a community. Many people are vehemently opposed to Big Box stores moving into their community. However, still others support Big Box stores despite the controversy.
Generally the argument for building Big Box stores goes like this: Big Box stores create jobs, generate sales taxes, and can make hard-to-find products available. They also tend to offer lower prices than local merchants. Many argue that building a Big Box store can revitalize an area where jobs are few and encourage the construction of other commercial industries in areas where jobs are badly needed.
If a Big Box store opens in one area, many of that area’s financial problems are solved. People are offered jobs, and the revenue from sales helps fund public welfare projects. Roads could be improved or more money could be available for the poor. An abandoned mall, which could be a crime hotspot, can suddenly become a beautiful area that people want to visit, all at the expense of the Big Box store.
Opponents of Big Box stores contend with the following arguments. The jobs that are created tend to be minimum wage, which means they may not provide a living wage for people, especially those who are in desperate need of work and are poor. Some big-box stores also employ particular people full-time, so they’re ineligible for health benefits.
Lower prices tend to mean local businesses start losing money. Large retailers can afford to cut prices and sell some items below cost to other merchants. Many of their cost savings are a result of using manufacturers outside the United States, and increased demand for cheap products means fewer American products.
Newer businesses that might enter an area are often other Big Box stores or smaller chain stores, undercutting local merchants. Thus, Big Box stores can provide jobs, but they do so at the expense of some people losing their jobs or businesses. New low-paying jobs usually do little to help the poor.
Big Box stores can also cause money problems for people in a community. Large storefronts can increase traffic on already congested streets. Merchants may want more police presence in their neighborhoods, which means higher costs for the public. Ultimately, opponents argue, Big Box stores cost more than they save.
This argument comes up again and again in the United States and other countries as people fight over issues involving Big Box stores. Some communities have allowed such stores to be built when the stores agree to pay employees a fixed wage or fund low-cost employee housing.
These may clearly satisfy those who argue that everyone is paid a living wage. However, it doesn’t suit people who are concerned about the loss of local businesses or the extra costs incurred by big stores. Both sides of the issue offer salient and defensible points, and the argument is likely to continue as long as Big Box stores wish to enter new communities.
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