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The High Cost of Low Prices
The American Conservative ^ | May 22, 2006 Issue | Marian Kester Coombs

Posted on 05/17/2006 10:55:50 AM PDT by A. Pole

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1 posted on 05/17/2006 10:55:55 AM PDT by A. Pole
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To: Willie Green; Wolfie; ex-snook; Jhoffa_; FITZ; arete; FreedomPoster; Red Jones; Pyro7480; ...
According to Jeff Foxworthy, you might be a redneck if you’ve ever been promoted to dishwasher, or if the last physical you had was on board a UFO. In the Wal-Mart economy, you might not be a redneck yet, but you could be soon. If taxes are the price we have to pay for civilization, higher prices may be the price we have to pay for a First World society.
2 posted on 05/17/2006 10:56:44 AM PDT by A. Pole (If the lettuce cutters were paid $10 more per hour, the lettuce head would cost FIVE CENTS more.)
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To: A. Pole
People say, how can it be bad for things to come into the United States cheaply? How can it be bad to have a bargain at Wal-Mart? Sure, it’s held inflation down . ... But you can’t buy anything if you’re not employed. We are shopping ourselves out of jobs.

In the meantime, unemployment is the lowest it ever gets and illegal aliens stream across the border for non-existent jobs at the rate of 2,000 per day.

But go ahead and say "we are shopping ourselves out of jobs." It's not like you can be held accountable or anything.

3 posted on 05/17/2006 11:01:16 AM PDT by E. Pluribus Unum (Islam Factoid:After forcing young girls to watch his men execute their fathers, Muhammad raped them.)
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To: A. Pole

--I can't help but notice the same people who think Wal-Mart prices are too low think gas prices are too high--


4 posted on 05/17/2006 11:02:37 AM PDT by rellimpank (Don't believe anything about firearms or explosives stated by the mass media---NRABenefactor)
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To: E. Pluribus Unum
In the meantime, unemployment is the lowest it ever gets and illegal aliens stream across the border for non-existent jobs at the rate of 2,000 per day.

Exactly said and I should care that they are unable to unionize Walmart. Attention Walmart haters - get a clue.

5 posted on 05/17/2006 11:03:02 AM PDT by rhombus
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To: A. Pole
Wal-Mart's impact on the U.S. economy is one of the most overrated "hype" stories in the media in recent years.

The biggest positives are the two for which Wal-Mart is beloved of blinkered free traders: its deflationary effect upon prices and its relentless promotion of efficiency up and down the chain of production, distribution, and sale.

This actually has nothing to do with "free trade" at all, except that it clearly illustrates the importance of operational efficiency at all points in the supply chain -- and how the relationship between labor and transportation plays such an important role in supply chain management. If the transportation cost associated with shipping a product from Asia to New York are less than the cost of shipping the same product to New York from Michigan, then moving production to Asia would be a viable option even if U.S. and Asian labor costs were the same.

6 posted on 05/17/2006 11:06:38 AM PDT by Alberta's Child (Can money pay for all the days I lived awake but half asleep?)
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To: A. Pole
TFP

It's 'pay me now in price' or 'pay me later to the goverment'. Knocking down the domestic payroll makes the company more profitable but is a loser for the population in growth of government [have we noticed?] . The government makes up the difference in building safety nets plus the social costs of family degeneration.

"Penny wise and pound foolish is no way to go through life" to paraphrase Dean Wormer.

7 posted on 05/17/2006 11:12:34 AM PDT by ex-snook ("But above all things, truth beareth away the victory.")
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To: A. Pole

"Attention Wal-Mart bashers..."


8 posted on 05/17/2006 11:13:42 AM PDT by Extremely Extreme Extremist (FR's most controversial FReeper)
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To: A. Pole

BTW - your comrade Willie Green has been banned.


9 posted on 05/17/2006 11:14:15 AM PDT by Extremely Extreme Extremist (FR's most controversial FReeper)
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To: A. Pole
This article is nothing but a pile of anti-free market, Third Way nonsense which perhaps is to be expected from a magazine founded by Pat Buchanan. Sam Walton simply was more efficient at retailing than others were, and saw a market need to provide a wider array of goods and services than was available in small town and rural America. At least when he was alive, Wal-Mart boasted about their buying American products for sale when available. In so doing, Wal-Mart actually encouraged American manufacturing.

Currently, Wal-Mart seems to sell relatively little that is not made in Red China or some other Asian country. However, the Chinese have managed to produce goods of acceptable quality at low prices. Like it or not, the decision to eliminate most trade barriers was made by the Executive Branch, with the advice and consent of Congress. The blame for the decision not to use quotas or tariffs must fall on the Feds, not private companies that must deal with the existing economic and political environment.

10 posted on 05/17/2006 11:14:28 AM PDT by Wallace T.
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To: A. Pole
Figures pat buchanan's magazine would bash the most successful retail operation ever.

Must be "success" envy for pat, since his magazine is floundering like a fish out of water.

11 posted on 05/17/2006 11:17:05 AM PDT by Dane ("Mr. Gorbachev, tear down this wall" Ronald Reagan, 1987)
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To: A. Pole

If we are truly headed towards the point of "shopping ourselves out of jobs", then capitalism will correct it LONG before we're all unemployed.


12 posted on 05/17/2006 11:18:27 AM PDT by Lunatic Fringe (http://ntxsolutions.com)
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To: rellimpank
--I can't help but notice the same people who think Wal-Mart prices are too low think gas prices are too high--

Walmart is subject to the same quality-price-value equation that all other folks are subject to.

I often find that buying a quality product, regardless of where it is made and where it is sold, is worth the initial cost, if at all possible

13 posted on 05/17/2006 11:19:05 AM PDT by Fury
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To: A. Pole

All I can say is, this is a really dumb article. The function of a consumer is to seek the best quality for the price, not to bestow charity on inefficient and unresponsive economic entities. That is why WalMart is a success: it gives you what you want.

On Canadian TV I saw a skit lampooning anti-WalMart demonstrators. A middle-aged woman was interviewed, and stated her objections to WalMart thus: "Do you know what they have in that store? Do you? Why, they have PEOPLE in there to HELP you, and to assist you in finding what you WANT!! Why, it's contrary to every principle of Canadian commerce."

It is interesting to find a supposedly conservative magazine running a vague attack-article like this one, which one might expect on a hard-left website. Where is the source substantianting the charge that the founder of WalMart wanted to overrun the whole country? The author is beginning to foam at the mouth.

The only reason WalMart is successful is that it supplies needs for people. It does not do anything unethical. When I need underware, or socks, or DVDs, I often go to WalMart. Plain, ordinary stuff, efficiently delivered. It's much better than going to some mall-city and wandering around through over-priced boutiques.

As for encouraging foreign imports: you will find foreign imports everywhere, and at the high-price end, as well as with cheaper goods. People buy what they choose: I never buy imported wine when good California wine is avialable.

Try buying an American-made TV: I don't think that there are any. That is not WalMart's fault.

I would buy an American car, if I could find one that had good technology, and would last, and had tasteful design. I buy the best for my purpose. The last car I bought was built in Belgium, and presumably the dollars which flowed to Belgium eventually made it back to the USA to buy something here. I got a good car, now ten years old and running well, and there was NO equivalent made in the USA -- none!

WalMart is my friend! So are other outlets of my choice. I will buy where I want, and will ignore false moralizing from articles like that above.


14 posted on 05/17/2006 11:19:41 AM PDT by docbnj
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To: ex-snook
The government makes up the difference in building safety nets plus the social costs of family degeneration.

That is only true if every employee Wal-Mart hires would have otherwise been working at a far higher pay scale without Wal-Mart. You'd have a hard time making the case that this is true with any Wal-Mart employees -- let alone all of them.

The "burden" that Wal-Mart places on taxpayers is a myth, and I'm surprised at how much traction this myth has gotten even here on FreeRepublic. It's not as if Wal-Mart builds a new retail store somewhere and imports welfare cases from all over the country to work there.

15 posted on 05/17/2006 11:19:51 AM PDT by Alberta's Child (Can money pay for all the days I lived awake but half asleep?)
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To: E. Pluribus Unum

I know this is from "American Conservative" but this article smacks of socialism.

"A former Vlasic executive comments that consumers would “eat a quarter of a jar and throw the thing away when they got moldy."

Wow, a Vlasic exec who doesn't even know what pickling does. Maybe tht's why your company went belly-up. I can assure you, large jars of pickles sat unrefrigerated on the counter at a c-store I worked at. I have never seen a moldy one.

"Fishman discerns the same “devastating success” among other suppliers, from Huffy bikes..."

Huffy bikes are crap and have been ever since the onset of a host of US companies in the 70's who made good bikes out of quality materials that would last. Mongoose is an example. Wal-Mart now caries them. We learned the difference between a good bike and crap, Huffy did not. Nice of the guy to blame Wal-Mart, though.

Jeez, I could go on and on through this dung-heap of an article.


16 posted on 05/17/2006 11:22:35 AM PDT by L98Fiero (I'm worth a million in prizes.)
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To: rellimpank
--I can't help but notice the same people who think Wal-Mart prices are too low think gas prices are too high--

When you say "gas prices are too high", it begs the question "too high in relation to what?" Clearly, from one angle gas prices are set by a variety of market conditions and are supported at a level that the international market will support. There are some stupid government tricks that come into play to raise such prices beyond a purely market price (taxes, restrictions on refineries by environmentalists, etc) but the price is still essentially market driven.

From another perspective, however, gas prices are "too high." That perspective is one of "gas prices are too high for Americans to maintain our standard of living." If current trends continue, gas prices will remain too high for the kid in high school to go cruising in a Mustang on a Saturday night. They will be too high for a family to drive to the lake on a weekend and spend that weekend on their motorboat. They will be too high for commuters to live in a quality suburb and deal with that 40 mile round trip commute on a daily basis.

When two unlike systems have enough complex interactions for a long enough period of time, equilibrium is the inevitable result. Economics is not immune to this rule.

The dilution of the middle class standard of living is a cause of concern for many in America and is the motive behind books/articles such as this.
17 posted on 05/17/2006 11:25:21 AM PDT by Old_Mil (http://www.constitutionparty.org - Forging a Rebirth of Freedom.)
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To: docbnj
That is why WalMart is a success: it gives you what you want.

Sometimes... I personally only go to Wal-Mart for toiletries and household cleaning items. I don't buy plants, or food, or clothes, or CDs, etc. I think the quality of their products is sub-par and customer service is non-existent. Combine that with rude customers who crash into you, cut in line, take three shopping carts through the express lane... No, I hate Wal-Mart, and I hate them for a lot of reasons. But I hate them for my experiences in their stores, not at all for their economic power.

18 posted on 05/17/2006 11:26:20 AM PDT by Lunatic Fringe (http://ntxsolutions.com)
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To: Wallace T.

"Currently, Wal-Mart seems to sell relatively little that is not made in Red China or some other Asian country."

Good post but I always like to address this issue. Information avalable on Wal-Mart's site. Last year, Wal-Mart spent 8 billion with China. They spent 150 billion with American companies.

Some of those American companies do choose to have some of their products manufactured in China. The same products are sold in stores all over America, not just Wal-Mart. Your comments about trade agreements and the Feds is right on.


19 posted on 05/17/2006 11:28:36 AM PDT by L98Fiero (I'm worth a million in prizes.)
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To: Extremely Extreme Extremist

What's a day on FR without a thread inviting the usual suspects to bash Wal-Mart, Toyota , or Honda? Today it's Wal-Mart's turn.


20 posted on 05/17/2006 11:30:28 AM PDT by The South Texan (The Democrat Party and the leftist (ABCCBSNBCCNN NYLATIMES)media are a criminal enterprise!)
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