Posted on 10/07/2005 6:39:59 PM PDT by voletti
That's what one hears as the giant retailer sops up the vitality from middle-class families, local communities, and the national economy . This happens in three different but related ways. First, there's the clobbering of Main Street: Wal-Mart moves in on the edges of towns, and the much smaller downtown merchants, unable to match its prices, soon go under. Second, there's the miserable wage and benefits package offered by Sam Walton's creation. And third, there's Wal-Mart's purchasing strategy, which seems to be about buying American-made products only as a last resort -- to the point that today Wal-Mart, by itself, is China's eighth-largest trading partner!
You could make the case that we are well on our way to becoming "Wal-Mart Nation." But maybe we don't have to be. Consider Costco (COST ), Wal-Mart's most notable competitor –- whose much more sensitive and noble business model actually serves as a boost to the national economy and to its shareholders.
Costco's pay scale begins at around $10 per hour and averages $16. After four years, a Costco cashier can earn $44,000 (counting bonuses), which is significant purchasing power. In comparison, Wal-Mart's average hourly wage is a miserly $9.68. To appreciate the impact of this 65% difference in average wages, University of California at Berkeley researchers recently concluded that in 2003 Wal-Mart's low wages and benefits for its employees in California compelled taxpayers there to give these employees $86 million in food stamps, health-care, and housing subsidies just to stay above water.
(Excerpt) Read more at businessweek.com ...
If Wal-Mart is such a bad place to work, how is it they can hire 600,000 new employees every year? Maybe they offer people with no job skills an opportunity to learn those skills before moving up or on. They also hire many senior citizens who, like many others, want part-time work and don't need the benefits. Whatever the reasons, no one is holding a gun to anyone's head to work there.
WalMart has no employee loyalty. They are ripping off their employees BIG TIME.
Yeah, sure. Seventy-Six percent of all Wal-Mart managers have come from the ranks of their hourly employees. Name another company in this country that offers that kind of upward mobility to employees who, for the most part, lacked skills when they started and rarely have more than a high school education.
Do you think we need someone (government or union) to tell Wal-Mart how much they should pay their employees and what sort of benefits they should be required to offer?
I also think that every opponent of the New York Yankees should be given a one-run head start; Tiger Woods should be made to play with hickory shaft clubs; and Democrat Senate candidates running in red states and GOP Senate candidates running in blue states should be awarded an extra 5% of the vote. It's only fair.
In our town almost everything was out of business already when Wal-Mart came in. Our friend who had a tire and mechanics business had been warned to play it close to the margin because Wal-Mart would hurt him for around 3 years and then he'd have most of his business back. He had a 6 month slump and is doing better than ever.
Funny, Wal-mart supposedly pays low wages, yet I've never heard of a Wal-mart not able to find people happy to apply and work there. I know a local college town in which the letters to the editor talked about the low wages at the local Wal-mart distribution center that was going to move into the area...they had around six applicants for each position. To believe the statement, one has to believe that mom and pop places pay wages higher than Wal-mart. From my own experiences, mom and pop places pay the lowest wages. BTW, lower wages are ok if you have lower expenses (ie lower cost items for sale at Wally World). Of course, I can't argue with the China part...
But then you don't pump kids out if the highest job you can do is a cashier.
Another thing I have to ask everyone....
I make a lot more than $9.68/hr as a physician....but I also work a heck of a lot more than 40 hours/week too.
When did we all 'agree' that everyone should earn a 'living wage' (whatever that is) for a 40 hour work week? Hell, a lot of professionals work more than 40 hours/week...if someone can only make $9.68/hr they'll make more working 60 hours/week than 40.
Some people simply hate the best. Walmart is the best supply chain in the world. Their groceries are much cheaper than the regional and national stores. It is not my favorite place to shop, but you can save big $$ there, especially on groceries.
And by comparison, "mom and pop" stores pay higher wages? yeah, right.
I think you are behind the times pal. The median income for a family of 4 in the U.S. is in the mid 40's. I'm sure 40 isn't much in Kalifornia. Afterall, with high taxes, and expensive real estate, 100k is probalby middle class. There are plenty of other places in the country where 44k per year is very good money...especially for a high school grad!!! Don't be a moron.
I have a question.. Where is it written that Mom and Pop store has a right to stay in business????
If only the government or unions would force Wal-Mart to pay a living wage to their employees then we'd have true capitalism.
You must never eat in a restaurant and I can't imagine where you shop for the things you need for everyday life. What do you think the average wage in this country is for retail workers?
The median household income in this country is around $44,000. There are a lot of households out there making it on less than that every year. What constitutes a living wage is impossible to define. These are things better left to the market to determine.
But even the hourly workers at Wal-Mart fare better than this article suggests. I also know an hourly Wal-Mart worker, who worked for the company for 25 years--she never rose above the rank of department manager. But she put part of her paycheck into Wal-Mart stock, and accumulated a nest egg of more than $250,000. And remember: they're called "entry level" jobs for a reason. People that want to move up in Wal-Mart--and prove themselves--can do just that. Funny, but I never hear similar stories about Costco.
Wal-Mart has bettered the lives of thousands of Americans, and continues to provide opportunties for people that want to work hard and advance. And this isn't "good" for the economy?
Wanna bet? I know cashiers with twenty years service at Kroger who make over $20 an hour. Union people, but still.
Actually, I believe Target is owned by a French company.
I usually hit 40 hours by early Thursday morning. I worked in restaurants to get through school. Most of our cooks worked 40 hours at one store so they could get benefits and then would work another 20 or so at another store just to make ends meet. I think there is a lot of that going on in this country.
I haven't been in a book store in ages. (And I buy books)
I don't either. Our city is dying since manufacturing left the midwest area.
Walmart came to town but refused to locate in the city limits to avoid paying taxes. Built within a 'stone's throw' of the city line.
The city tried to annex the property for tax purposes. Walmart balked and threatened to leave. Walmart won.
Not a very nice 'neighbor' in my opinion. I cast my vote with those who are within city limits and do my shopping there.
"You can obviously speak English."
Yes, but I can't speak Spanish, and at the rate we're going, that could be a problem.
Not only can I speak English, I majored in it in college, and got--sorry, ATTAINED--a 2-year degree. After I graduated, I moved to NC, and approached the world cocky and thinking that my degree would automatically get me the world handed on a platter. Life humbles you quickly.
Actually, I wasn't waiting tables, I was delivering pizzas, which may or may not be worse. I've been crippling anti-social since...I guess my junior year in HS. And on a Friday night, I'd rather be nowhere but here.
Yeah, when I read that "32 thousand/year in California is poverty-level!" I almost laughed my head off. My Aunt and Grandmother live there, and I hear nothing but horror stories about the cost of living. CA needs less socialism, and more capitalism!
Oh, and not only can I form coherent sentences, I can draw, too...if you'll pardon the shameless advertising.
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