Washington DC

One of the areas that have benefited the most from the federal government spending has been the region surrounding Washington DC. The city itself is like a tale of two cities with one forth growing and prospering and three fourths filled with unemployed and low income minorities. Wallmart in cooperation with the mayor did an extensive study including polling the residence and made the decision to build 6 stores in the underprivileged part of town. One of the things learned in the survey was that there were not enough grocery stores in these neighborhoods. Now after three years of planning and three stores under construction the city council has passed a law saying that large stores like Wal-Mart must pay their employees $12.50 per hour. Wal-Mart has stated that they would not come into the city under these circumstances and the council does not care. This same thing has happened in other big cities and in each case Wal-Mart pulled out. These stores not only provide low cost items but there are 1,800 jobs at stake plus the local property taxes that these stores would pay. At this time it appears that the mayor who originally approached Wal-Mart will veto the council’s proposal and it will end but Wal-Mart may wonder what will happen if a new mayor is elected and pull out anyway. It is likely that courts would rule the law unconstitutional since it does not apply to all businesses. Wal-Mart was only allowed to start building in the nation’s capital after agreeing to a voluntary Community Partnership Initiative, in which the chain vowed to contribute $21 million to local charities, stock local products, allow space for local retailers, fund transportation measures, and create a citywide job training program for low-income and at-risk residents, among other conditions.