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01-18-2012, 02:38 PM
Rich A
Not Selected
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1
Didn't Staples put Office Max out of business? If so, shouldn't the lost jobs be subtracted from the 10,000 jobs Romney said Bain created?
01-18-2012, 05:31 PM
Schmidt
Colorado Springs, CO
Posts:
1058
Rich, you make a very good point. When big box chains like Staples, Home Depot, Walmart and Target open stores in communities they take away business from small business stores...Mom and Pop stores if you like. And often the Mom and Pop stores are forced to close after a year or more.
Several economic studies
have been done looking at exactly this effect, and one of them suggests that for every new retail job created by Wal-Mart, 1.4 jobs are lost as existing businesses downsize or close.
It's a different situation when a Staples or a Home Depot run an Office Max or a Lowe's out of business. In that case for the community the net job effect might be zero...that is the jobs gained at Staples are offset by an equal number of jobs lost at Office Depot.
It might, however, be argued that Staples created competition and provided better value than Office Max, and therefore the community is better off. But once the Office Max closes and there is no more competition, then the community is probably no better off than it was before, assuming no population growth.
When one is looking at the benefits of a store on a community one needs to look at the entire community over several years and not just the store itself.
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