The Wal-Mart Effect

Tech Central Station:

Boone, North Carolina (named for the famous Dan'l) is a college town nestled in the rustic mountains of Appalachia. The population is divided roughly among groups of students, locals, and the academic elite. Such a microcosm of American diversity works in its own way. The locals realize how much money the university brings in. The students love the Smoky Mountain amenities and the bluegrass music. Academics find the local folkways charming and complementary to their status as, well, elites. But when Wal-Mart decided to come along in the 90s, locals, students, and academics also had a common purpose to bind them: to keep Wal-Mart out. As it often does, Wal-Mart won. And since then, Boone has experienced the Wal-Mart effect. First, some Mom-n-Pop shops in Boone may have gone out of business due to the intense competition. But something interesting has happened: many new businesses have sprung up and they're cooler, more interesting, and more highly specialized than most of the old ones were. Mom-n-Pop have decided to move into more boutique-style businesses -- and not even Wal-Mart can compete with that.

Read the whole thing, a very interesting way of looking at it. As is so often the case with any economic analysis, the negative effects tend to be obvious while positive effects are subtle and more difficult to see. Cheaper goods benefits a local economy in numerous ways, and to the extent that Wal-Mart supplies that, they are a huge benefit. There are other reasons to criticize Wal-Mart. I personnally find the stores too crowded and noisy to enjoy shopping there, the hassle isn't worth the extra saving to me. (via Running for the Right)