August 10, 2004

L.A. Targets Wal-Mart

Los Angeles City Council looking for ways to block Wal-Mart from opening superstores:

The Los Angeles City Council today approved, in concept, a law that will make it harder for Wal-Mart to erect Superstores in the city by requiring them to show whether surrounding communities will be harmed by the addition of the mammoth stores.

Under the ordinance, which faces another vote Wednesday, retailers larger than 100,000 square feet that devote more than 10% of their sales floor to food and other non-taxable items will have to pay for an economic analysis to forecast whether a proposed development will eliminate jobs, depress wages or harm neighborhood businesses.

This law would basically block any new stores since Wal-Mart isn't going to cave into unions. I couldn't find the exact language of the "concept" on the website(they didn't pass an actual ordinance yet), but it would be a fair guess that this is a fairly open question as to whether a superstore actually harms a community.

Posted by Bob on August, 10 2004 at 10:50 PM | TrackBack

Comments & Trackbacks
Kevin Brancato wrote:

This is a clear example of how legislation can demand the impossible. Why not just demand that Sam Walton resurrect and walk on water? More seriously, what happens if the results of the study indicate that the proposed development will have no effect on net jobs, with a 99% prediction interval of +/- 1000 jobs?

-- August 11, 2004 04:00 PM

Alex wrote:

Heh. How creating more jobs, making the store easier to shop in, and lowering prices are harmful is beyond me.

-- August 14, 2004 03:10 AM

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