Get Supercenters AND Tax Revenue
Union opposition to Wal-Mart Supercenters may benefit taxpayers and consumers in the long run.

Let's look at the situation today. Megacorp approaches the City Council for Itty Bitty City and plays hardball.

"Itty Bitty City," says Mr. Megacorp, "we MAY decide to build one of our stores in your town, giving you the benefits of associating with us and giving your city tremendous tax reve- strike that - giving your city a number of customers who will shop at your existing trash stores if we don't put them out of business first. All you have to do is build a freeway to our store, waive requirements to pay taxes and things like that, and all this will be yours! Or perhaps we'll go to your neighbor city across the street."

However, the actions of the city of Oakland and other jurisdictions have changed the balance of power somewhat. Here's what those conversations will look like in the future:

"Itty Bitty City," says Mr. Megacorp, "we REALLY REALLY HOPE you'll let us build one of our stores in your town, giving you the benefits of associating with us and giving your city tremendous tax revenues. We'll build a freeway to your city, completely fund the public schools for ten years, and give the city pension fund 10,000 shares of Megacorp stock. Please please take us; all the neighbor cities have passed ordinances against us."

Seriously, it's going to be interesting to see what happens when City A bans Wal-Mart, City B welcomes them with open arms, everyone shops at City B, and all the existing City A stores close down. Not only is City A losing jobs anyway, they're not getting any tax revenue in the bargain. If Berkeley was smart, they'd DEMAND that Wal-Mart build a store in Berkeley, and capitalize on sales from Oakland residents.