I don't even know if "neoprotectionism" is a word. If not, I'm hereby declaring it one.
There's a temptation for local government to build a fence around local business. In Fort Collins, that's taking place with the fight against development along the I-25 corridor. The neoprotectionists (See how that works so well here?) on the City Council believe that any competition from I-25 retailers will hurt Old Town shops and retailers in the urban core.
Of course, that's not what the Old Town shops and retailers in the urban core say. Mayor Hutchinson correctly pointed out in a recent Council meeting that they actually welcome I-25 retailers. They see it as a net positive for the financial health of the community and believe it will create entry points to the city.
So what does hurt these local retailers? Reason Online has an article up by Radley Balko entitled: "The Death of Main Street: Are big chains to blame, or is excessive regulation?"
Go and read. Here are some key graphs:
People who decry the Wal-Mart-ification and Gap-ificaiton of America need to realize that regulation often does more harm to local businesses than predatory pricing, loss-leader business models, or some other imagined corporate evil.
I've lived in or near Old Town [referring to Old Town Alexandria, Va. -ed] for most of the last 10 years. It's not at all common to see an independently-owned antique shop or art gallery get boarded over, only to be replaced in ensuing months by a franchise. It's not difficult to see why. Franchise operators can tap the resources of the parent company, particularly when it comes to accessing legal help with experience navigating through and working with local zoning laws and business regulations.
Local officials who simultaneously decry big box stores and national chains while doling out burdensome regulatory structures and complicated permit processes should understand that regulatory burdens hit the smaller, independent places hardest, because they're the places that have the smallest amount of discretionary cash to hire legal aid (or, if you're really cynical, to make the appropriate campaign contributions). They're on a tighter budget and, therefore, have a smaller margin of error when it comes to hassles like delaying an opening because some bureaucrat determined their signage is a couple of inches out of compliance.
