There's not that much to understand - City Councilman Ed Reyes introduced a motion that could effectively block the retail giant from opening in Chinatown in part because the unions are against it. And it's easy to see why: Walmart threatens to take business away from the big supermarkets, which are struggling to compete against the low-cost chains - and which are union shops. It's a legitimate concern. If I were a union leader, I'd be pushing hard to keep Walmart out, too. But this Reyes guy isn't willing to face the cameras and simply admit that he doesn't want a Walmart in his district. Instead, he insists he's not taking sides, but just wants to "'maintain the character of Chinatown." This, of course, is nonsense. Look, it's possible that nearby groceries might lose some business to the new Walmart; there have been all sorts of studies on the effects of Walmarts on neighboring retailers and the conclusions go in all directions. But that's not the point - the point is that city government has no place meddling in what's essentially a business decision. There is some irony here: Reyes' political buddy, Mayor Villaraigosa, has been on a tear lately about the importance of bringing more business to the city. The mayor hasn't taken a position on the Walmart/Chinatown controversy, but at some point he'll need to. Perhaps by then Reyes will figure out how to oppose the Walmart store without really saying he opposes the Walmart store.
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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.The multi-talented Mark Lacter