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My rapidly fading love affair with Wal-Mart
Flopping Aces ^ | 02-25-14 | Vince

Posted on 02/25/2014 1:20:12 PM PST by Starman417

The first time I ever saw a Wal-Mart I was a grad student getting my MBA down in Tallahassee, FL. One opened up down the road from my apartment and I was immediately taken by the big bright stores with lots of stuff and what seemed to be pretty low prices. In class I learned the secrets to Wal-Mart’s success in its niche of “Always low prices”. It demanded efficiencies from its suppliers. It became fanatical about using information technology to optimize its sourcing and distribution channels. It paid its employees the community average or sometimes slightly more, but never significantly so. And of course the company benefited tremendously from scale. At the end of the day Wal-Mart became a spectacular success because it provided the goods people wanted at the lowest prices possible.

Thus began a two decade long love affair with Wal-Mart. For most of the last twenty years I’ve spent most of my shopping dollars, particularly food, but other items as well, at Wal-Mart. It helped that, as I hate to shop, I could go there and get pretty much everything I needed in one place, from apple juice to socks to those little trees you put in your car to make it smell good.

I remember around 2003 when a friend of mine got married in Key West. I went to Wal-Mart and purchased a pair of those mesh shoes with the rubber sole that you could wear in the ocean. They cost about $7.95. I remember how amazed I was that they could manufacture that pair of shoes in China, label them, ship them across the ocean, transport them to my store where people would receive them, inventory them, display them and eventually charge me for them, and do so at a profit! Even if they paid their workers in China a penny a day I still didn’t see how they could do all of those things and still make a profit.

When my love affair with Wal-Mart began the company had 1,500 stores mostly serving rural communities across the country and generated about $25 billion a year in sales. Today they have 10,000 stores around the world and generate half a trillion dollars in revenue annually.

Like it or not, Wal-Mart has changed the face of American retail. By using the best of the free market the company has saved Americans hundreds of billions of dollars over its lifetime, savings that they might have used to can use to provide more food to their children, to give to charity to buy their kid a computer for college, or just buy another flat screen TV. By any definition Wal-Mart is an American success story.

Unfortunately however, my love affair with Wal-Mart is fading… and fast. The first injury to the relationship was when the company supported ObamaCare in an effort to increase pressure on its smaller competitors. The second was when they supported the taxing of online sales. Since those two events I’ve reduced the money I spend in Wal-Mart by well over 50%. Now I’m beginning to wonder if I need to redirect most of what’s left. According to Bloomberg, the company is considering supporting the Obama administration’s move to raise the minimum wage. While Wal-Mart knows that it would incur higher wage costs, it also knows that because of its size and efficiency it can better weather the increase than most of its competitors.

(Excerpt) Read more at floppingaces.net...


TOPICS: Business/Economy; Government; Politics
KEYWORDS: minimum; obama; retail; wage; walmart; workplace
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1 posted on 02/25/2014 1:20:12 PM PST by Starman417
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To: Starman417

And they’ve gutted entire US industries by helping take their IP and product specs over the manufactures in China...

Looks like we’re nearing a tipping point, when even someone as stupid as a MBA wakes up to the reality.


2 posted on 02/25/2014 1:23:38 PM PST by NVDave
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To: Starman417

It is a major corporation and it wants to have butter on its bread and it turns to the government. It wants to price newcomers out of being competitive it turns to the government.

Find a corporation that doesn’t do these things now a days, its tough. Look at the Chamber of Cronies, they are all in on the act.


3 posted on 02/25/2014 1:24:34 PM PST by GeronL (Vote for Conservatives not for Republicans!)
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To: Starman417
Unfortunately however, my love affair with Wal-Mart is fading… and fast. The first injury to the relationship was when the company supported ObamaCare in an effort to increase pressure on its smaller competitors. The second was when they supported the taxing of online sales. Since those two events I’ve reduced the money I spend in Wal-Mart by well over 50%.

Well then. The answer is simple. Shop at Amazon.

Watch out. 3 tags coming!

/sarc

/smirk

/snark

 

4 posted on 02/25/2014 1:27:59 PM PST by Responsibility2nd (NO LIBS. This Means Liberals and (L)libertarians! Same Thing. NO LIBS!!)
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To: Starman417
The "People of Wal*Mart" sure don't help matters.


5 posted on 02/25/2014 1:31:04 PM PST by LostInBayport (When there are more people riding in the cart than there are pulling it, the cart stops moving...)
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To: NVDave

Oh nooooo,
Wal Mart uses American products, “whenever possible”.
And they would never lie like obammy now would they?


6 posted on 02/25/2014 1:32:06 PM PST by Joe Boucher ((FUBO) obammy lied and lied and lied)
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To: Starman417

I hate Walmart because it pretty much single-handedly killed the “mom and pop” stores and flooded the market with crap quality goods. Of course, Walmart isn’t alone in doing that but I moss the local stores (not for everything) where there was a sense of community and good quality.


7 posted on 02/25/2014 1:33:41 PM PST by RIghtwardHo
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To: GeronL
Find a corporation that doesn’t do these things now a days, its tough. Look at the Chamber of Cronies, they are all in on the act.

Where was she when Home Depot forced the majority of small hardware stores out of business? Or Walgreens and CVS here in taxifornia shutting down neighborhood pharmacies? Hell wherever there is a vacant corner it seems Walgreens would put up a dinky outlet until they could glom onto a bigger property and build a bigger store leaving behind a bunch of shuttered useless buildings. Walmart is the boogeyman for what countless other businesses do.

8 posted on 02/25/2014 1:34:35 PM PST by Mastador1 (I'll take a bad dog over a good politician any day!)
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To: LostInBayport

Well Walmart Haters generally look no better.


9 posted on 02/25/2014 1:34:50 PM PST by Kartographer ("We mutually pledge to each other our lives, our fortunes and our sacred honor.")
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To: RIghtwardHo

In the 19teens they were saying the same thing about Sears and JC Penney


10 posted on 02/25/2014 1:35:36 PM PST by GeronL (Vote for Conservatives not for Republicans!)
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To: Starman417
The points about Walmart supporting government policies which produce an unfair advantage for larger corporations are well taken.

In each case, Walmart is happy to support left-wing, anti-free-market government policy as long as it hurts their competition more.

This is not-too-subtle corporate cronyism, and has nothing to do with free market economics.

If Walmart is going to support such leftist crap, they deserve to lose conservative consumer dollars.

11 posted on 02/25/2014 1:36:27 PM PST by sargon (I don't like the sound of these here Boncentration Bamps!)
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To: GeronL

Dollar General is doing a decent job of attacking WM from below.

As Americans slide down the slippery slope of the Baraqqi Depression, there is room for even more low end retail.


12 posted on 02/25/2014 1:38:33 PM PST by nascarnation (I'm hiring Jack Palladino to investigate Baraq's golf scores.)
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To: Starman417
I believe one of the WalMart founders is aggressively supporting Hillary Clinton.
13 posted on 02/25/2014 1:38:34 PM PST by Obadiah (I Like Ted.)
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To: Obadiah

True, but as I proved years ago if you avoid every national retail operation with some link to some liberal/progressive/Democrat/gay/etc you will have no place to shop.

The sad fact is that big business realizes there is a fair chance of long term progressive control of our country and is attempting to buy “insurance”.


14 posted on 02/25/2014 1:41:08 PM PST by nascarnation (I'm hiring Jack Palladino to investigate Baraq's golf scores.)
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To: Starman417

I shop at Walmart to get ammo when it’s available, and once I bought a gun there (a US made Colt M4 6920, an “assault weapon”). If they offer a good product at a good price I buy it there. The local gun shop won’t be put out of business by Walmart.

Food, I don’t buy there much. The local grocery store is closer and more convenient.

Sure, Walmart may have killed off some Mom and Pop stores, but nowadays they wouldn’t survive anyway, what with the internet, and their prices were always high in comparison to large retailers today. The times call for efficiencies of bigness to thrive.

The American consumer killed off American manufacturing: Walmart offers cheap stuff and that’s what people demand. If they wanted to keep US manufacturing going, they would have bought the stuff. How do you compete with Pakistan or China when your regulatory, labor and health care costs are so much higher? You don’t because you can’t.

To use Amazon isn’t any better, IHMO, because they’re a liberal owned operation selling the same stuff from overseas, minus the brick and mortar.


15 posted on 02/25/2014 1:46:05 PM PST by vicdoc
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To: vicdoc

IIRC UPS is using the government regulations to hobble Fedex


16 posted on 02/25/2014 1:47:14 PM PST by Chickensoup (leftist totalitarian fascism is on the move.)
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To: Starman417

My love affair with Wal Mart ended when one could go into a store with 40 check out lanes including self checkouts and only 3 lanes are open and the self checkout made for 20 items or less were broken. Or some slob with 80 items insisted he/she was the most important shopper in the world and decided to use it and the store management does nothing to prevent it.I recall our local Super K-mart was just the same before Sears holdings closed a bunch of them including that store. Wal Mart appears to be following the K-Mart model to the “T”.

I’ve become a fan of Dollar General lately.


17 posted on 02/25/2014 1:49:26 PM PST by The South Texan (The Drive By Media is America's worst enemy and American people don't know it.)
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To: FReepers
Donate And Make It Yellow!


Click The Pic

18 posted on 02/25/2014 1:53:39 PM PST by DJ MacWoW (The Fed Gov is not one ring to rule them all)
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To: Mastador1

Why do Walgreens and CVS build their stores close to each other? If you see one here, the other is next door or across the street. Just curious.


19 posted on 02/25/2014 1:56:48 PM PST by MamaB
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To: RIghtwardHo; Mastador1
I hate Walmart because it pretty much single-handedly killed the “mom and pop” stores and flooded the market with crap quality goods.

The shoppers of your community, who voluntarily took their shopping to Wal-Mart, killed the mom and pop stores.

The shoppers decided they didn't much care if mom and pop stores stayed or left. If the shoppers would have all stayed away from Wal-Mart, it would have packed up its marbles and went home.

Yes, I know Wal-Mart does some dirty business practices but forcing people to shop there isn't one of them.

20 posted on 02/25/2014 2:01:19 PM PST by Lizavetta
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To: MamaB
Why do Walgreens and CVS build their stores close to each other? If you see one here, the other is next door or across the street. Just curious.

I guess for the same reason Home Depot and Lowes do, hoping to outsell and then close down the competition.There can be only one!

21 posted on 02/25/2014 2:04:03 PM PST by Mastador1 (I'll take a bad dog over a good politician any day!)
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To: Lizavetta
forcing people to shop there isn't one of them.

Whenever I read liberal publications whining about WM employees and their lot in life, I have this vision of Walton Family "press gangs" taking innocents off the street, putting blue vests on them, and making them work at WM.

22 posted on 02/25/2014 2:04:19 PM PST by nascarnation (I'm hiring Jack Palladino to investigate Baraq's golf scores.)
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To: Starman417
Though never "in love" with Walmart, I definitely fell out of love when those "American Made" products they promised, disappeared from their shelves to be replaced by goods from China!

No thanks Walmart, I don't like trading in goods made by slave labor, and YES many are made by political prisoners (an entire family was placed in prison because a son took a course in college and wrote a paper that was "deemed to be seditious!") who are paid nothing for their labor. Most Chinese companies are actually owned by the Chinese military, so I don't care to help China achieve power over us by purchasing "cheap gardening tools, etc. and lastly, I resent Chinese "food products" including non-food substances like Melamine, that kill American babies, adults and pets!

BTS, those same prisoners are blood-typed to become "organ donors" when the needs or profit necessitates.

23 posted on 02/25/2014 2:04:54 PM PST by zerosix (Native Sunflower)
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To: Mastador1

Well said.

When John D. Rockefeller created Standard Oil, which (according to the Wikipedia definition) was “...an American oil producing, transporting, refining, and marketing company...”

There were a lot of small petroleum producers, refiners and distributors who were absolutely crushed and put out of business by Standard Oil.

But Standard Oil delivered petroleum products at a far lower cost than anyone else had been able to. And that opened up the usage of petroleum products to far more people than was possible before they came on the scene.

Just like the factories that were able to make textiles on a large scale for far less cost put a huge number of people out of work who had been making textiles by hand.

And robotics developed for the auto industry put a lot of people out of work. (oh, wait...or SHOULD have put them out of work)

And so on.

Walmart isn’t perfect (I very rarely shop there myself) but people apparently buy their products. I just think one has to have a certain set of blinders on to blame Walmart for the ills they are perceived to have caused. I don’t support their stance on Obamacare, and I don’t have a problem with someone who says they won’t shop there due to that. I understand that.

But to say that Walmart should stock more expensive and less available or reliable merchandise simply because “it didn’t come from China” is wrong. Capitalism means you (as a corporation) field a product that people are willing to spend their money on. If marketing makes people believe a crappier product made in China for less money is somehow a better purchase than a better product made in the USA costing more money, who is to blame? The company that is selling it, or the people who are buying it?

It is like people who cast aspersions on people who have a lot of money.

It is all relative. There is always someone who has LESS money than you do, and can throw the same aspersions at you.

Once you start with that, where do you stop?


24 posted on 02/25/2014 2:09:29 PM PST by rlmorel ("A nation, despicable by its weakness, forfeits even the privilege of being neutral." A. Hamilton)
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To: Lizavetta

Como? I’m not clear how your response applies to me? And shoppers have been killing the mom and pop stores since the days of Sears and Roebuck, Montgomery Wards and large scale grocery stores and as fars as flooding the market with crap quality goods when was the last time you were in a Sears, Kmart or any one of the myriad Dollar Tree clones?


25 posted on 02/25/2014 2:10:56 PM PST by Mastador1 (I'll take a bad dog over a good politician any day!)
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To: vicdoc
I shop at Walmart to get ammo when it’s available

Walmart has horrible inventory control of everything now. Half the items on my shopping list end up being bought elsewhere, often for less. Trying to shop at Walmart is now a big waste of time.

26 posted on 02/25/2014 2:13:03 PM PST by Reeses
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To: MamaB

Zoning? Sometimes these things are in the works for years, and parking/traffic flow is a huge consideration.


27 posted on 02/25/2014 2:14:28 PM PST by gundog (Help us, Nairobi-Wan Kenobi...you're our only hope.)
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To: Mastador1

Sorry. Misread your post.


28 posted on 02/25/2014 2:22:42 PM PST by Lizavetta
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To: Lizavetta

It’s okay! Lord knows I’m responsible for enough posts that deserve a good smack!


29 posted on 02/25/2014 2:25:05 PM PST by Mastador1 (I'll take a bad dog over a good politician any day!)
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To: MamaB

Around her Lowes and Home Depot are across from

each other in a bunch of towns.

We have a new discount store in town called

Ollies Bargain that has had unreal crowds since opening.

We have really cut down going to Wally.

Don`t think Sam would like they have become.


30 posted on 02/25/2014 2:29:44 PM PST by Harold Shea (RVN `70 - `71)
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To: gundog

Thanks. I just find it odd that they are always near each other.


31 posted on 02/25/2014 2:31:03 PM PST by MamaB
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To: Harold Shea

Have not heard of Ollie’s Bargain, but WM is vulnerable to attack from the low end.

Dollar General has cut into WM sales.

As Americans slide down the economic abyss, there will be more opportunities.

Carlyle (the most politically connected private equity outfie) is buying trailer parks.


32 posted on 02/25/2014 2:32:21 PM PST by nascarnation (I'm hiring Jack Palladino to investigate Baraq's golf scores.)
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To: Mastador1

One day I was in a department store. I had some free time so I just wandered about picking up stuff just to see where it was made. I was amazed that most was made in China, Indonesia, etc. It is not only Wal Mart nowadays.


33 posted on 02/25/2014 2:34:09 PM PST by MamaB
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To: RIghtwardHo

That’s a lot of liberal propaganda.

I grew up in a little Arkansas town of 3,500 and a Walmart came in around 1975 as they did back then in small communities. First, they bought an existing, and empty, building and put the store in. Eventually they buy some land and build a bigger store and lease out the older one. By this time they had hired over 50 locals to work there.

Among the businesses we had were a Sears Cataloge store (remember those?), local clothing store, two drug stores, a NAPA store, a Western Auto and several grocery stores. To this day EVERY store I mentioned above is STILL THERE along with Walmart (except the Sears store).

And after all this time the town only grew to 5,200 people.


34 posted on 02/25/2014 2:42:12 PM PST by Fledermaus (If we here in TN can't get rid of the worthless Lamar, it's over.)
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To: nascarnation

So does Aldi for groceries.


35 posted on 02/25/2014 2:42:59 PM PST by Fledermaus (If we here in TN can't get rid of the worthless Lamar, it's over.)
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To: GeronL

It is a major corporation and it wants to have butter on its bread and it turns to the government. It wants to price newcomers out of being competitive it turns to the government.

Find a corporation that doesn’t do these things now a days, its tough. Look at the Chamber of Cronies, they are all in on the act.

My guess is 3% of republicans understand your point.
)5 of rats
Now if everyone did we could eliminate the entire rat population in less than a generation.
thanks for posting.


36 posted on 02/25/2014 2:46:10 PM PST by genghis
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To: Starman417

We bought a box of cereal from Walmart yesterday, the box said 23 ounces, we took it home, placed it next to an older box, THAT box said 25 ounces, even though it was the same size!

We called the cereal manufacturer and they said they make two different boxes of cereal, one with 23 ounces, one with 25 ounces, depending on the store.

We asked if that’s because Walmart wants to sell a cheaper box, while making it seem they’re getting the same amount of cereal...she didn’t respond.

Seems totally corrupt to me, to sell two boxes that look exactly the same, while one has 23 ounces and one has 25.

I don’t trust anything from Walmart...

Ed


37 posted on 02/25/2014 2:47:45 PM PST by Sir_Ed
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To: Starman417

I soured on them when they caved to the “Go Green” movement, resulting in darkened stores and restroom facilities that were utterly useless.


38 posted on 02/25/2014 2:53:24 PM PST by Buckeye McFrog
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To: Reeses

I believe before WalMart included groceries they had more inventory and far more choices. I complain about this all the time! lol


39 posted on 02/25/2014 2:56:17 PM PST by bonfire
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To: Mastador1

40 posted on 02/25/2014 2:57:10 PM PST by EEGator
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To: Starman417

Big Business can manage the minimum wage increase. Their smaller competitors can’t. The same with Obamacare.


41 posted on 02/25/2014 3:04:07 PM PST by TBP (Obama lies, Granny dies.)
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To: Starman417

Interesting. The Wal-mart haters here don’t sound any different than the Democrat and union Wal-mart critics.


42 posted on 02/25/2014 3:06:07 PM PST by righttackle44 (Take scalps. Leave the bodies as a warning.)
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To: Starman417

We ought to price those Chinese slave labor goods out of our market.


43 posted on 02/25/2014 3:06:52 PM PST by TBP (Obama lies, Granny dies.)
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To: Fledermaus

Just visited an ALDI for the first time last week. I was surprised at the low pricing.
Everything except meats was significantly less. Even milk was 40 cents / gal less than WM.
It’s not convenient to us to go there but may be worthwhile a couple times per month. I have to subtract the $3.50 gas cost for the trip from my savings, LOL.


44 posted on 02/25/2014 3:39:29 PM PST by nascarnation (I'm hiring Jack Palladino to investigate Baraq's golf scores.)
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To: MamaB
Why do Walgreens and CVS build their stores close to each other? If you see one here, the other is next door or across the street. Just curious.

In a little town where I shop there is this combo at an intersection, one across the street from the other.

45 posted on 02/25/2014 4:09:17 PM PST by OldPossum ("It's" is the contraction of "it" and "is"; think about ITS implications.)
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To: OldPossum

That is the way my closest 2 are. I saw construction going on in another part of town. Walgreens on one side and CVS on the other side. It is like one can not exist without the other one.


46 posted on 02/25/2014 4:15:41 PM PST by MamaB
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To: Sir_Ed

“We bought a box of cereal from Walmart yesterday, the box said 23 ounces, we took it home, placed it next to an older box, THAT box said 25 ounces, even though it was the same size!”


Unbelievable.

Were the prices the same and were they bought at different stores?

.


47 posted on 02/25/2014 4:23:00 PM PST by Mears
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To: righttackle44

Years ago, there was a thread on Wal-Mart here. I followed a link, and someone had actually done a study on this and there were several interesting conclusions.

1. When Wal-Mart comes to town, the for most of the people there it is like everyone got a 10% raise. Even if you don’t shop at Wal-Mart you benefit because other stores try to match prices.

2. The number of mom and pop operations in the town actually increases. The type changes. If you own the corner pharmacy, you are going to be in trouble—Wal-Mart is lower priced. If you own Frank’s Custom Mufflers you are going to do better than you were. Wal-Mart will bring more traffic, and they don’t compete with you. All kinds of specialty stores thrive with Wal-Mart next door. The common feature is that they are selling something Wal-Mart doesn’t.


48 posted on 02/25/2014 4:38:26 PM PST by CurlyDave
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To: vicdoc
The American consumer killed off American manufacturing: Walmart offers cheap stuff and that’s what people demand. If they wanted to keep US manufacturing going, they would have bought the stuff. How do you compete with Pakistan or China when your regulatory, labor and health care costs are so much higher? You don’t because you can’t.

Well slap a 10% import tariff on the incoming cheap crap then things look a little different. A tariff could offset income taxes and promote domestic competition and production. A win-win. Most Free trades love the status quo of sky high income taxes, low(or no tariffs) and high unemployment.

Personally I hate Free Traders. The best scare tactic of the Free Trader is to claim a $1.00 screwdriver made in China and sold at Wally World would cost $10,20,30(pick an outrageous number) Dollars if made in the USA. It is a lie and BS.

49 posted on 02/25/2014 4:49:52 PM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: zerosix
"No thanks Walmart, I don't like trading in goods made by slave labor, and YES many are made by political prisoners (an entire family was placed in prison because a son took a course in college and wrote a paper that was "deemed to be seditious!") who are paid nothing for their labor. Most Chinese companies are actually owned by the Chinese military, so I don't care to help China achieve power over us by purchasing "cheap gardening tools, etc. and lastly, I resent Chinese "food products" including non-food substances like Melamine, that kill American babies, adults and pets."

THIS! In pursuit of slightly cheaper consumer products, Americans have financed their enemies and dealt with Communist slave-masters.

50 posted on 02/25/2014 5:17:17 PM PST by free-in-nyc (Freeping from the heart of the occupation)
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