ninjablu said:
SuperFriendBFG said:
The most comprehensive study of Wal-Mart's impact showed that the stores reduced earnings per person by 5 percent. This 2005 study by an economist from the National Bureau of Economic Research used Wal-Mart's own store data and government data for all counties where Wal-Mart has operated for 30 years, It found that the average Wal-Mart store reduces earnings per person by 5 percent in the county in which it operates.
Does it now? I guess they forgot to mention that they didn't include unemployed people in the study, did they? If a Wal-Mart gets built in an area with a high unemployment rate, the average salary (which doesn't include the unemployed) goes down slightly, yes but Wal-Mart doesn't directly reduce the salary of other companies, it just means Wal-Mart provided low paying jobs to those who were previously unemployed.
The fact is most of you have no idea why you hate Wal-Mart. You just take someone else's reasons and claim it to be legitimate reason for your hatred. You see class action lawsuits against Wal-Mart because it's how the law works. When someone in a company fucks up, the company as a whole is responsible. Personally I think it's bullshit that a group of CEOs who never met Jack Manager are the ones who have to pay for his mistake.
Are you trying to call bullshit on me with that? Your mathematics and ideas are skewed at best.
Go Back and read the bolded text, and then come tell me that every single isolated walmart was placed in area with high unemployment, and that your opinion is worth several researchers at the United State's National Bureau for Economic Research. Unless you're a doctorate yourself, you can't call bullshit on doctors.
And that was just one extreme example against Walmart.
In 2005, there were a total of
57 cases against Walmart. It's not every single Walmart, but I doubt that any other corporation has ever faced that number of lawsuits at a given time.
Argue with me when you've got your researched facts straight. And don't bullshit an ex-bullshitter.
Alright let's get started.
To fully understand my argument you must know how the Federal Government conducts their census. Once you understand the methodology you can then begin to understand any potential flaws within that methodology.
This was quoted from "ninjablu"
National Bureau of Economic Research used Wal-Mart's own store data and government data for all counties where Wal-Mart has operated for 30 years, It found that the average Wal-Mart store reduces earnings per person by 5 percent in the county in which it operates.
This simply isn't true because both case studies that deal with the economic affects that Wal-Mart has on any given county was conducted based on data gathered between 1989 and 1999. More on that later.
Some things to consider before proceeding. Both of these are excerpts form the US Census Bureau:
For each municipality and province, the average of all standardized disposable household incomes of all residents is calculated and subsequently, the percentage difference with the nationwide average is calculated. People living in homes and institutions, the so-called institutional population, and student households are not taken into account.
Average income of individuals refers to the weighted mean total income of individuals 15 years of age and over who reported income for 2000. Average income is calculated from non-rounded data by dividing the aggregate income of a specified group of individuals (e.g. males 45 to 54 years of age) by the number of individuals with income in that group.
An excerpt from "Firm Entry and Wages: Impact of Wal-Mart Growth on Earnings Throughout the Retail Sector" by Arindrajit Dube, University of California, T. William Lester, University of California, Barry Eidlin University of California:
We use two different data sources to evaluate the impact of Wal-Mart store openings on earnings. The first is the county-level Quarterly Census of Employment and Wages (QCEW) dataset compiled by the U.S. Bureau of Labor Statistics.
We are not able to distinguish between a reduction in average annual earnings that is
due to lower hours of work from one that is due to lower hourly wages in the QCEW. (We
deal with this issue by using the CPS, which does have data on hours.)... The second data source is the March Supplement to the Current Population Survey. Unlike the QCEW, the March CPS allows us to investigate both hourly wages (as opposed to annual earnings) as well as health benefits of retail workers, and additionally has demographic information about retail workers.
Okay right, so by using two different sources for their data (one is used to fill the blanks on people with hourly wages) they are increasing the chance of inaccurate results. These sources also use the same methodology as the Federal Government when conducting their census. But the fact is, each census has a margin for error. When applying two different data sources the margin for error increases.
Excerpt from "How the Census Bureau Measures Poverty (Official Measure)" which is done by the Federal Government.
People whose poverty status cannot be determined:
# institutional group quarters (such as prisons or nursing homes)
# college dormitories
# military barracks
# living situations without conventional housing (and who are not in shelters)
The census results given by the American Government is susceptible to those who do not declare their income, those who live in college dormitories, military barracks, and of course the homeless. Now, the case study used the poverty census done in 1989 as the starting point for their study.
So within those 10 years which the case study decided to use as a basis for their study, they could not factor in those who weren't declaring their income in 1989; and start declaring their income sometime between 1989 and 1999. They also couldn't factor in those that live in college dormitories without declared income either; and started declaring their income sometime between 1989 and 1999. Another factor they couldn't possibly consider is the number of foster children (this includes any child who is under 15 and living in a household that is not of the same family) who were under 15 in 1989, and ended up earning declared income between 1989 and 1999.
So if you take these facts (of which I determined by both reading the case study itself, and reading the methodology used by their primary source (the US Government) in their poverty line census). The case study could not possibly consider the effects that anyone who was omitted from from the census for above mentioned reasons (and possibly more) in the 1989 census. Anyone who was omitted during the 1989 census that ended up working in a lower paying job (those who are payed less then the regional average) any time between 1989 and 1999 were not considered when calculating the effect that Wal-Mart has on the overall poverty rate in each county. It is a fact that anyone who works (or has worked) a job that is below the county average; and hasn't been considered in a previous census will inevitably
cause the average income to go down. This couldn't have been considered in the case study because the data simply isn't present in any of the sources that were used.
What follows in an excerpt from "Wal-Mart and County-Wide Poverty" by Stephan J. Goetz and Hema Swaminathan Department of Agricultural Economics and Rural Sociology. The same paper that was mentioned in "Wal-Mart: The High Cost of Low Price".
The question whether the cost of relatively higher poverty in a county is offset by the benefits of lower prices and wider choices available to consumers associated with a Wal-Mart store cannot be answered here.
An excerpt from "The Effect of Home Ownership on Poverty Measurement" by David M. Betson University of Notre Dame November, 1995:
While this finding was significant, it was questionable whether it was a robust result. The NAS Panel in formulating its recommendations chose not to propose any explicit treatment of home ownership, but suggested that future research should be directed to examining how home ownership should be considered in determining whether or not a household should be counted as poor. Owning one's home could have a significant impact upon whether or not a household should be considered poor. For example, consider two households both with the same income, but one household rents their home and the other owns its home and does not have a monthly mortgage payment. If both households' incomes are less than the poverty line, would we consider both households poor? Clearly the household which rents does not have an income flow which is sufficient to meet its total needed expenditures, and should be considered poor. But what about the household which owns its home? Since this household does not have monthly mortgage payments for its home, it could use the portion of its income which would have gone toward the mortgage or rent for other household necessities such as food or clothing. Hence even if this household's income was less than the poverty line, it could possibly have sufficient income to meet its non-housing needs and should not be considered poor.
Some excerpts from "Reconsidering the Federal Poverty Measure" by Douglas J. Besharov and Peter Germanis October 18, 2004:
Income: The current poverty measure counts some but not all forms of income. It counts
welfare payments (about $4,200), because they are in cash. But it does not count noncash
benefits such as food stamps (about $2,200), housing assistance (about $5,400), Medicaid
(about $6,000 for a family of four), the State Children?s Health Insurance Program
(SCHIP) (about $1,000 per child), energy assistance (about $400), the school lunch and
breakfast programs (as much as $600 per child), and the Special Supplemental Nutrition
Program for Women, Infants, and Children (WIC) (about $400 per person). It also does
not count refundable tax credits such as the Earned Income Tax Credit (EITC) (about
$1,700), because they are ?post-tax.? It also ignores the value of assets (especially home
ownership), although it counts any income generated by assets (but not capital gains or
losses). And, although it counts the income of family members living in the household, it excludes the income of nonfamily household members such as boyfriends.
Of course, not all poor families receive benefits from each of these programs. For
example, housing assistance is not an entitlement and many low-income families are placed on
long waiting lists or do not bother to apply at all. Similarly, many families eligible for Medicaid do not apply for benefits until a medical need arises. Moreover, in regard of Medicaid and Medicare, there is great controversy about how and even whether they should be counted as income. Nevertheless, enough low-income families receive such benefits that counting them would substantially reduce the published poverty rate.
So compounding these above mentioned factors, we really can't determine for sure if Wal-Mart has a positive or negative impact on the economic situation.
My sources:
-http://www.census.gov/hhes/www/poverty/povdef.html#4 How the U.S. Census Bureau Measures Poverty (Official Measure).
-"Wal-Mart and County-Wide Poverty" found here [http://www3.interscience.wiley.com/journal/118550917/abstract] October 18, 2004 by Stephan J. Goetz and Hema Swaminathan
Department of Agricultural Economics and Rural Sociology.
-http://cecd.aers.psu.edu/pubs/PovertyResearchWM.pdf Case study by David M. Betson of the Notre Dame University Department of Economics.
-http://www.welfareacademy.org/pubs/poverty/povmeasure.description.pdf A paper by Douglas J. Besharov and Peter Germanis.
-http://repositories.cdlib.org/cgi/viewcontent.cgi?article=1124&context=iir "Firm Entry and Wages: Impact ofWal-Mart Growth on Earnings Throughout the Retail Sector" by Arindrajit Dube, T. William Lester and Barry Eidlin, University of California, Berkeley.