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Karen, Just one thing about your excellent post. It comes up again and again and is the
contention that money spent at Wal-Mart and other large firms somehow disappears
out of state. I would conclude that as the money is being
exported, there is less left around town. So, before long, this drain would
mean that no money is left and no-one can buy anything. As this doesn’t appear to happen,
money must be coming back into town. Where does it come from? Also, I wonder what Not to worry, the idea arises from a modern
economic education that has forgotten about reality. Harry ******************************* of 818
352-4141 ******************************* From:
[EMAIL PROTECTED]
[mailto:[EMAIL PROTECTED] On
Behalf Of Karen Watters Cole Not all these tax incentive schemes are planned and
executed well. Many times the corporation has pulled up, lock, stock and
barrel, just before they were to begin paying taxes after the grace period
expired, leaving communities in debt for infrastructure upgrades, job losses
and the lost revenue. As with some restrictions on Wal Mart’s rampant
building programs, some municipalities are learning to build in clauses that
guarantee a penalty if the company leaves early, or in the case of Wal Mart,
they vacate the property too quickly. There is no free lunch, they say, but municipalities
have a real problem when corporations take a Godzilla approach to the
marketplace. If people realized that most employment in their state, as well as
nationally, came from small and medium sized businesses, not the large
corporations, they would be even more angry about the giveaways and blackmail
done in the name of economic development. Moreover, when you have large national firms as your
major employer/revenue, the bulk of their monies go out of state to HQ.
The multiplier effect favors local, independent businesses. For every $1 spent
with a local business, it circulates 3 times at other local/regional
businesses, instead of being shipped out overnight to People are also paying more attention to where they
bank and buy their mortgages, weary of the mega mergers and loss of identity.
It may be a side effect of globalization and the wonders of technology, but it
also has something to do with pride of place and community. Karen |
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