Wal-Mart Destroys Social Capital, Study Finds
The content that follows was originally published on the Institute for Local Self-Reliance website at http://www.ilsr.org/walmart-destroys-social-capital-study-finds/"Our results indicate that the presence of Wal-Mart depresses social capital stocks in local communities," concluded Goetz and Rupasingha in their study, which was published by the American Journal of Agricultural Economics. The implications include both a weakened social fabric and "real costs for communities in the form of reduced economic growth."
The study examined both communities in which new Wal-Mart stores were built in the 1990s and those that already had a Wal-Mart at the beginning of the decade. The study controlled for other variables known to affect social capital stocks in a community, such as educational attainment.
