The High Cost of Low Prices

The American Conservative ^ | May 22, 2006 Issue | Marian Kester Coombs

[Fudd]

BTW - your comrade Willie Green has been banned.

Does this mean no more updates on light rail and seeing the lyrics to the "Monorail" song?

[Red6]

Firms like Wal-Mart become targets.

It’s a "bad thing" to be successful. When capitalism works, the socialists among us must find bad within it. After all, it bothers them to see such businesses succeed.

Do I sound strange? Probably.

But ask yourself why across the world McDonalds is the stage of anti-American protests? Why McDonalds is the target of the environmentalist, the “social activist” or whatever else they want to call themselves. The Golden Arches are a symbol of free market activity, globalization, capitalism and the US. It’s painful when this firm is successful. Years ago you heard the exact same Bullshit about McDonalds, they were deemed as bad for the environment, they were bad for society with their low wages and and and.

OK, Wal-Mart is the new bull’s-eye. Got it.

[E. Pluribus Unum]

Vlasic Corporation found itself bound to supply huge gallon jars of pickles to Wal-Mart for $2.97, a price at which it made maybe a penny a jar... Forced to continue offering the deal or lose its entire Wal-Mart account, the company saw its profits squeezed for two and a half years before Wal-Mart finally let it “up for air.”

So who was the Vlasic genius that signed the contract? Did Wal-Mart hold a gun to their head and make them sign it?

(This is not directed at you. I am just expanding upon your previous comment.)

[B-Chan]

2006: 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. It provides plain, ordinary stuff, efficiently produced by Third-Worlders who are happy for the chance to work.

1806: The only reason the plantation system is successful is that it supplies needs for people. It does not do anything unethical. When I need cotton, or tobacco, or indigo, or sugarcane, or rice, I just go to the market square and buy it from a friendly, helpful plantation owner. He provides plain, ordinary stuff, efficiently produced by happy, singing slaves.

Moral: Economic practices in which human beings are mere means to an end are immoral no matter how well they work.

[ex-snook]

OK My remarks at 7 were not Wal-Mart specific but aimed at the situation that the NAFTA type promise of 'trade bringing good paying jobs to America' is not met by the Wal-Marts. The limbo of how low can you go in paying people is not a long range solution to economic prosperity.

[Mase]

Walton’s obsessive quest never extended to quality.

More than 100 million Americans shop at Wal-Mart weekly. Their dollar vote makes everything this idiot whines about meaningless. The amount of distortions and outright lies in this article makes it too painful to read. There is nothing conservative about this writer or her article.

[bfree]

This article is just a lazy, sloppy job of writing. It's the same old rehash of garbage spewed by the haters and union hacks every week.
I know it is hard to believe but NO ONE IS FORCED TO WORK THERE OR SHOP THERE. Shocking as that is, they seem to be shopping there in big numbers and applying for jobs there in record numbers.

[nightdriver]

"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."

Not really.

We can all work in the retail business selling chineeeeeze-made stuff to each other.

[L98Fiero]

"So who was the Vlasic genius that signed the contract?"

Those guys don't sound too bright. It's like a Wal-Mart exec was waiting for him in the back seat of his car when he got off work, held a knife to his throat and made him sign the deal.

[Labyrinthos]

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

I think Walmart proces are too low and that gas prices ought to be a lot higher if we really want an alternative to buying oil from our enemies.

[L98Fiero]

And she is just dumb, I think.

It has worked—and in the process helped transform America from the workshop of the world into a nation not even of shopkeepers but of shop assistants (“sales associates”).

I work for Saks. The people in our stores are called, you guessed it, "Associates". The employees at McRaes are called "Associates". When I worked at a Roses department store in college, the sign on the break-room was "Associate Lounge". I'm not sure anyone in this country has been called a "shopkeep" for a hundered years. What a ditzy little socailist she is.

[reformedliberal]

1) I have purchased those 1 gallon jars of pickles in the past. Pickles not only do not go moldy, due to all the salt and acid, I just checked on the (Vlasic) pickles in my refrigerator and they don't even carry an expiration date. Oh, and the jar was purchased at a Super Walmart, is glass and holds 1 pint, 8 oz.

2) Vlasic (see 1) is still in business as a brand and is owned by Pinnacle Foods, who also own Armour, Mrs. Pauls, Celeste, Aunt Jemima and others.

So, whatever happened in 2001, Vlasic was still a salable commodity. Usually, when these purchases take place, all that changes is the corporate offices. So, those who supply, work for and distribute Vlasic have probably remained fairly constant.

To avoid all this, any manufacturer can elect to stay small. There are many niche marketers whose stock in trade is their limited production. However, if they are popular & profitable enough, they will be acquired by some large corporation who will then control the marketing, pay the owner a salary and grow the business. I am aware of several handcraft companies to whom this has happened. Everyone involved was satisfied and the employees now have 401Ks, pensions and health insurance.

[E. Pluribus Unum]

I think Walmart proces are too low and that gas prices ought to be a lot higher if we really want an alternative to buying oil from our enemies.

Thank God you're not in charge or we'd really be hosed!

[Last Dakotan]

Wal-Mart owes its success to being the first retailer to source in a big way from China.

If for any reason they are not able to get their goods from China they will collapse like a house of cards.

[Toddsterpatriot]

He continues to send him love notes, in case he returns. It's kinda sweet, in an economically illiterate, gay sorta way.

[xpertskir]

Whatever happened to laissez faire?

[Toddsterpatriot]

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

Latest numbers I've seen indicate WalMart buys about $22 billion out of $240 billion from China. About 9%.

[Labyrinthos]

Excellent article -- This statement really says is all:

"We want clean air, clean water, good living conditions, the best health care in the world. Yet we aren’t willing to pay for anything manufactured under those restrictions."

I am convinced that Walmart's business plan is to become the world's largest "company store." By keeping wages and prices low, Walmart pretty much guarantees that most of its 1.5 million employees can only afford to shop at Walmart, thereby retaining a large part of what Walmart pays out in wages within the Walmart economy.

[bfree]

Please don't confuse the bashers with facts. You know they hate facts.

[Toddsterpatriot]

Yeah, WalMart is just like slavery. Thanks for that tidbit.