The Wal-Mart store which has served the Lewiston-Clarkston area is undergoing a move, from Lewiston on the Idaho side of the Snake River to Clarkston on the Washington, and shifting from a standard store to a larger supercenter. The new Clarkston facility opens sometime later this month; the Lewiston store will close after an overlap of a month or so.
The departure from Lewiston will result, naturally, in a loss of tax revenue in Nez Perce County, which has county officials concerned.
None of which is an unusual development, except maybe for the shuttle across state lines. But a slice of commentary in the Right Mind blog seems to cry out for response:
"I can’t figure this out. The progressive-liberals say that when Wal-Mart comes to town, jobs disappear. But now they are saying that when Wal-Mart leaves town, jobs disappear. Sounds like global warming to me: everything bad is caused by it."
Okay, let's break this down.
Some businesses add to the size of a local economy - the big paper mill at Lewiston, for example. Others operate within the size and structure of a location's overall economy: Few retail or local service businesses make the economy larger. In a place like Lewiston-Clarkston, there are a limited number of retail dollars available to spend. Add new retail to the mix and you're not expanding the number of dollars available for retail spending, you're just slicing the pie thinner. That is why when a giant like Wal-Mart comes to town, a number of smaller businesses are likely to shut down, because the revenues and the margins become too thin for them to continue to operate.
If Wal-Mart leaves a town (not something that has happened in a lot of places), that effect theoretically should over time reverse itself: Smaller businesses should arise to fill the gap. But that's not relevant to Lewiston-Clarkston, which is one economic community; the new store will serve the same population as the old one did. And because it is adding new grocery and other facilities, the effect may turn out to be the shutdown of some local grocery-related business. Lewiston-Clarkston will not, after all, have any more dollars available for spending on groceries after the supercenter opens than it does now.
The tax dollars paid by Wal-Mart will still be paid, only on the Washington side of the line - no massive change there, except for which county gets the money. But perhaps Right Mind has an answer to why this corporation, which according to so much conservative theory ought to be driven so heavily in its decisions by tax rates, should move from lower-tax Idaho to higher-tax Washington. Unless, perhaps, taxes are not after all the only consideration driving business location decisions . . .