Knowledge Problem

LA, Wal Mart, And Dynamism

I’m really glad that Kevin Brancato has written this post on how the city of Los Angeles is going to try to keep WalMart from building within the city limits. I also absolutely love his opening two sentences:

In contrast to The Washington Post, T&B believes that people living inside the City of Los Angeles have diverse and conflicting voices; it is the ruling class who has the power and desire to tell Wal-Mart to get lost. In particular, it is the city government that wants to ban Wal-Mart Supercenters; we have little idea what the people outside of government actually want.

Amen, brother! After lobbing a well-deserved flame at economists who will sell their credentials, he follows up with a truism if ever I heard one:

This calls for a reminder: Governments are not populated by truth-seekers.

Kevin’s done a great job of skewering the whole thing, and I recommend his post to you without reservation. I think he’s right, that if LA succeeds in keeping out Wal-Mart, the neighboring communities will benefit, because the Wal-Marts will get built there, and Angelenos will shop there. Either way, high-cost competitors with Wal-Mart will be facing competition. If LA wants to cut off their tax revenue nose to spite their union-sycophantic face, then they should not be surprised when Angelenos shop elsewhere.