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2 <br />I. Damage Caused by the Big-Game Strategy <br />A. Damage done to the community at large <br />A recent study, "Big. Business and Community Welfare," by Dr. Thomas Lyson of <br />Cornell University says it all: After examining 225 counties nationwide, comparing <br />those with economies dominated by a few large corporations to those with many <br />small, local enterprises, Lyson found that counties dominated by big businesses and <br />chain malls had: greater income inequality, fewer owner-occupied homes, higher <br />levels of worker disability, lower educational outcomes, and higher crime rates. ~ <br />Not only did the small business counties score higher on all of these socioeconomic <br />measures, they. had a larger independent middle class and higher rates of civic <br />engagement, as measured by voter turnout and membership in community <br />organizations. <br />B. The siphoning of local dollars to distant head-quarters <br />~ A 2002 study2 in Austin, Texas showed that for every .$100 local consumers <br />spent at a national bookstore, the local economy received only $13, whereas the <br />same amount spent at local bookstores yielded $45. <br />® A 2003 study3 of Midcoast 1Vlaine expanded this finding showing that local <br />businesses spent 54 % of their revenue (goods, professional services, wages, <br />benefits, etc.) within Maine, while big-box retailers returned just 14.1% of their <br />revenue, mostly in the form of payroll. <br />~ A 2003 study of Barnstable, Massachusetts by Tischler & Associates found that <br />the city's small, downtown stores generate a net annual surplus (tax revenue <br />minus costs) of $326 per 1,000 square feet, while big-box stores creates an <br />annual tax deficit of $468 per 1,000 square feet.(1) <br />C. Erosion of the surrounding economic network <br />As global retail chains have expanded, they've displaced tens of thousands of locally <br />owned, independent businesses. <br />® More than 11,000 independent pharmacies closed; chain drugstores now account <br />for more than half of all pharmacy sales.(2) <br />® More than 40% of independent bookstores failed. Barnes & Noble and Borders <br />Books capture half of all bookstore sales.(3) <br />® Local hardware stores are likewise disappearing; Home Depot and Lowe's <br />control 40% of that market.(4) <br />4 Five firms account for 42 % of all grocery sales, up from 24 % just five years <br />ago.(5) <br />® ~ Small and medium-sized office supply stores have declined from 20 to just 4% of <br />the market.(6) <br /> <br />