Quote:
Originally Posted by Dopedangel
If local stores become uncompetitive the businesses shut down area jobs go away with no jobs people move away and the city or town dies.
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That is
The Walmart Effect, which has been documented to destroy towns and counties. However, that effect is the result of a deliberate two pronged attack by WalMart, on the city and county:
1) By not paying a living wage to employees, resulting in local city and county budgets having to allocate US$20,000 per employee, to cover the services that the cite/county/state has to provide to the WalMart employee;
2) Selling goods at cost, until there are no local, physical competitors, and then raising the prices of items that are carried;
What the Internet has enabled small businesses to do, is expand their catchment area to places that are well outside of where they are physically located.
By way of example, there is a small operation in Friday harbour, that makes the hottest sauces you can imagine --- two million scoville units. By selling them online, it doesn't have to rely on the whims of the ferry service in bringing customers to the island.
Amber