Follow the money
Last week the executive director of the Alamogordo Chamber of Commerce, Ed Karr, was quoted in the Alamogordo Daily News saying that it was a good thing when part of the movie “Transformer” was filmed in the Alamogordo area and leaving behind a clean million dollars in the community. This is a great thing. The movie companies pay well and in Alamogordo’s dual economy this is a welcome relief to the usual minimum wage plus a dollar or two. They also clean up their mess before they leave. Mr. Karr also claimed that the very same million dollars is “still rotating in the economy” three months after the film crew left went back to Hollywood. I don’t think so. The bulk of that money would have been spent at the local Walmart and K-mart. Another large chunk would have been used in our many chain stores here. Most locally owned small businesses have been devoured by the big guys over the years.
According to the Rocky Mountain Institute, only 6 cents of every dollar spent in a big box retailer is retained or recirculated in a community. And 20 cents of every dollar spent with a chain store is retained or recirculated in a community. (Small Business Administration) Compare this with 60 cents of every dollar spent with a sole proprietorship that is retained or recirculated in a community. (SBA) My guess is that most of that million dollars is by now safely in an Arkansas bank.
The Otero County Council on Economic Development website proudly advertises generous incentives to business from out of town to locate here. They are also proud that New Mexico is a Right to Work (for less) state and they are especially proud of the fact that there is little union activity. “Growth is the philosophy of the cancer cell,” said Edward Abby. I believe he was right and that just might be the reason that only a small percentage of workers in this area can stay ahead of the game.
