Tag Archives: big box stores

Mom and Pop and Skin in the Game

A 2006 study by sociologists Stephan Goetz and Anil Rupasingha documented a decline in civic participation, including voter turnout and the number of active nonprofit organizations, after Walmart moves into a community. Those behaviors are markers for social capital, the connections citizens have to each other, characterized by what scholars call “norms of trust and reciprocity.” The importance of social capital had been studied by others, but was most prominently  highlighted by Robert Putnam, the Harvard political scientist, in Bowling Alone, published in 2001.

The Goetz and Rupasingha study also showed that with each Walmart store that opens in a city, social capital further erodes.

I was intrigued when I came across this study, so I did a bit more research.

It’s not just that cities with more social capital are better able to foster local enterprises and resist corporate consolidation, although they are. According to the research, the causality may actually go the other way as well. Where economic power is diffused, political power is more widely and democratically exercised. As economic power becomes more concentrated, civic engagement slumps.

This research tends to support what most economic development professionals believe–a city or town with a widely diversified economic base is healthier. That belief is grounded in a very practical calculus: in cities where there are many employers, the failure of one business is far less consequential than in cities where a substantial percentage of the workforce depends on one or two large employers. That logic is persuasive (and pretty self-evident), but it turns out that there is a substantial body of research supporting the thesis that a diversified economy composed of many relatively small enterprises is not only better able to withstand downturns, but also better able to generate higher levels of civic engagement and a higher quality of life.

According to an article in Grist,





When you think about it, this makes sense. Here in Indianapolis, many of us have expressed concern at the loss of the traditional business and banking headquarters from which so many of our civic leaders were drawn. Even our major law firms are merging with others to form “national” enterprises; their lawyers are likely to be less involved in the civic life of Indianapolis when it is just one of their many locations.

At some point, we need to consider the “big box” stores headquartered who-knows-where, and ask ourselves whether those cheap tube socks are really such a bargain.