[MD] Walmart, Final Answer

Arlo Bensinger ajb102 at psu.edu
Fri Feb 10 08:12:18 PST 2006


Platt,

Sure, there are hundreds of communities in ever-widening circles, from 
local to global. And one must be able to "discern" what makes each level 
healthy, and how the health of one level effects the health of another.

Many, if not all, social programs are funded on the local level. From fire 
to police to EMT services, from public libraries to public transportation. 
When the average wage in a community drops, as it does when a Walmart moves 
in, these programs suffer. When many neighboring communities experience the 
same wage-drain, programs on the next level suffer, from public schools to 
road repair. Charities, too, suffer when the overall wage in a community 
suffers. Although people might be paying 36 cents less for a can of 
Campbell's soup, the drop in real wages more-or-less negates "excess cash" 
from being donated to charitable causes.

As for manufacturing jobs being a source of real wealth, I've already 
referred you to several conservative sources on this. Farming is hardly, 
though, a "source of wealth" (as you suggest). I know many small farmers in 
the state, all of whom barely make it by, and do so because of commitment 
and love. The pressure to sell out to farming conglomerates is intense, but 
the income provided to employees of these megafarms is also on par with 
minimum wage (when they hire legally). But my concern here is not "what 
people do", but the wages they receive for their labor. When manufacturing 
jobs give way to high-tech jobs, wage levels tend to balance. When they 
give way to retail positions, wage levels go down. The health of local 
economies depends on wages earned in that community, and these local 
economies together impact the health of the state and nation.

I realize that for you, if a region in West Virginia becomes destitute 
because of wage-loss, this is of no concern for you, so long as your income 
level is maintained. And I am quite aware that the labor market is 
evolving, and jobs will always come and go. But, when a community shoots 
itself in the foot to expedite its descent into poverty, and supports 
stores that lock it into a cycle of poverty, that is something else 
entirely. And it does so out of a very, narrow mercantilist view that 
immediate profit (or savings) is ALL that matters. As the local tax base 
crumbles, as wage levels decrease, and police and fire services are cut, 
and public transportation is cut, and schools receive less funding, and 
libraries can't afford to obtain new books or even stay open, those 36 
cents become meaningless.

This focus on "immediate gratification" also ignores the long-term cost of 
buying the shoddy, cheap crap Walmart sells. A pair of sneakers at Walmart 
might cost $7, but last about as many months. While a pair of Quality 
shoes, at a higher price, last significantly longer, and are thus in the 
long-run actually less expensive to purchase. By relying on people's 
fixation for immediate low cost over Quality, Walmart's low prices actually 
make people spend more money at Walmart over the long-term. So, you can 
save $20 on a jacket, for example, but you'll buy jackets more frequently 
due to the low quality of Walmart's merchandise, and so that savings is not 
real. In fact, you'll end up spending MORE on merchandise when you shop at 
Walmart due to the high rate you have to replace the cheaply made junk it 
sells. I tried to explain this to an acquaintance last year who was "on his 
third VCR" from Walmart in less than two years. Sure, they only cost him 
$40 each, but that $120 he spent (so far at that time!) could have easily 
purchased him a higher quality VCR that would last many years. Hardly 
"saving money", if you ask me.

Walmart owes its success to preying on the shortsighted, mercantilist 
attitudes that pervade our culture. It is an economic vulture that feeds 
off poverty while all the while cementing the grip of poverty on a region. 
It preys off the need for "immediate gratification", and the reluctance of 
people to consider the long-term trade off. But again, as always, you reap 
what you sow... And that's my final word on Walmart, I'll look forward to 
your reply, but I think its time we put this horse out to pasture.

Arlo




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