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Old 09-07-2014, 06:17 PM
 
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I have seen city and county governments subsidizing big box stores with relocation of utilities, sales tax rebates and traffic signaling. They wouldn't do that for a small shop.
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Old 09-07-2014, 06:25 PM
 
12,291 posts, read 15,187,836 times
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Originally Posted by nei View Post
Often, it's a complaint transit is subsidized, so someone says roads are subsidized. Or the reverse direction. It's endless and a rather boring debate, not sure why people like to continue it.

No one has suggested we don't have roads, though some have complained about the amount spending on roads. Nor has any (well, maybe there's someone) claimed there were no roads 100 years ago.
There were roads 100 years ago but they were primitive. Of course with horse and buggy they didn't have to be good for over 10 mph. Roads are definitely subsidized, about half from gas taxes half from general revenues. Except when government builds a road to a mall or factory when about 90% comes from taxpayers.
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Old 09-07-2014, 11:29 PM
 
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Originally Posted by pvande55 View Post
I have seen city and county governments subsidizing big box stores with relocation of utilities, sales tax rebates and traffic signaling. They wouldn't do that for a small shop.
The big box store will bring in far more employment and revenue than an small shop.
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Old 09-08-2014, 09:55 AM
 
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The big box store will bring in far more employment and revenue than an small shop.
One small shop may have dramatically less revenue/employment than one big box, but given the sq footage, multiple small shops employ more people and generate more money for the local economy than a big box does, it's been shown over and over.

However, the small shops will only be able to compete with the big box if their goods are not direct competitors or if the access to the big box is much more limited, as the big box can use global supply chain and lower priced workers to outcompete any small business. Also, a single big box store is much easier to forecast future revenues for a city from than a bunch of small shops, so from a govt persective, you'll take known and slightly less over unknown and possibly more possibly less any day.
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Old 09-08-2014, 02:33 PM
 
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Big box stores are big money makers. I live in a small Los Angeles County city of about 55,000 people. Our power center with stores like Walmart, Home Depot, Best Buy, and Old Navy contributes about 50% of the city's sales tax. And most of the sales are coming from non-locals, too.

It's only like 10 businesses--50%... We have many independent and mom&pop businesses here too, but they can't hold a candle to the money big box stores pull in.

You can't blame cities and counties for helping and subsidizing big boxes.
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