Does Wal-Mart Destroy Communities?

Club For Growth ^ | [Posted May 31, 2004] | William L. Anderson

[TXBSAFH]

Back then they were still cheap, and I did shop there. But those days are past.

[Wallace T.]

The critics of Wal-Mart, Christian or not, focus on the corporation's stores destroying "community." (The same criticism is applied to other large retailers.) In the last 20 years, retailers have copied what was accomplished by manufacturers of consumer products and durable goods in the late 19th Century, the entertainment business in the early 20th Century, and fruit and vegetable growers and beer brewers in the mid 20th Century: the creation of a national/international market for what had been locally based. Just as firearms from Colt or Remington and Ritz crackers replaced the products from the local blacksmith or bakery, so Wal-Mart has replaced the locally based retailer.

The communitarians tend to forget that there has been nationally based retailing for over a century: chain stores like Sears, Montgomery Ward, J.C. Penney, A&P, Woolworth, and Kresge could be found in most towns with at least 10,000 in population 50 to 100 years ago. Indeed, Sam Walton started his retailing career at Kresge's 5 & 10 Cent Stores, and Wal-Mart is to a great extent just the old five and dime store writ large. Wal-Mart, unlike its predecessors, has been a more effective competitor to local retailers.

[Conspiracy Guy]

Come call me a commie to my face. I have not bashed WalMart per se. I just haven't shopped there since they changed.

A super store on every interstate exit is their strategy. They are starting to compete with themselves. That is when the great meltdown will occur.

[pbmaltzman]

I shop at Wal-Mart for the low prices. Apparently, however, one of the ways Wal-Mart is definitely NOT a free-market entity is the following:

They apparently are enthusiastic about using the power of eminent domain to have city governments take people's private property and then turn it over to developers... because the governments are extremely greedy for more tax money, and they will get more tax money out of a Wal-Mart than from, say, a bunch of small private property owners. Costco is another entity that is engaged in similar practices.

I listened to a speech by Neal Boortz on this very issue this past weekend at the Libertarian Party National Convention. Next time I see an article about city governments stealing private property so the city government can practically give away the property to a developer or a Wal-Mart or Costco, I'm gonna write an absolutely rabid letter against it.

[LauraJean]

I don't think I ever been followed at Walmart, but I have been followed at Sears. After a snow storm one day my family went to the mall just to get out. We go into Sears and this lady kept following us around. When she asked us what we wanted we told her we were just looking right now. She told us then the store was just open for ''emergency shopping and told us if we weren't going to buying anything we should leave.''
When we were driving home I noticed a bar open with plenty of cars in the lot. I commented to my husband the bar must be open just for ''emergency drinking.''

[Spok]

"my liberal sister made a show of buying gifts from mom-and-pop type businesses"

Some people get sad when they see a homeless man rummaging around in a garbage can; others when they see a dead dog or cat at the side of the road. I get sad when I see a small business close. These institutions represent the dreams of every day people who are willing to risk everything for the American dream. I love it when I hear they've hit it big and made millions, but my customer loyalty will always be to the little guy who's just starting and still dreaming of becoming a Sam Walton or Bill Gates. You see, they're all cut from the same cloth.

[SengirV]

And who works in Wal-Mart? Slobobians? Give me a break.

Great thinking there. Lets have one hundred $10 workers sell sweat shop items made overseas so that 1000+ skilled American workers can lose their jobs. Super strategy. I very rarely go to Walmart. The place makes me sick.

[Conspiracy Guy]

WalMart used to be part of Small Town USA. Now they are not.

I bought my Lawnmower at a mom and pop hardware and small engine repair store two blocks from WalMart.

[No Blue States]

I didnt call you a commie. In fact youve been one of my favs here for some time.

That doesnt require me to always agree with you.

I could conclude that you called me a traitorous cheapskate and buyer of worthless crap, and not to my face. But that is petty and I understand you are expressing your opinion which is what is done here.

[TheBattman]

The only "positive" I can come up with regarding Wal-Mart:

Wal-Mart's competition and now near monopoly in some areas has gone a long way towards keeping inflation in check. Wal-Mart has fed the consumer desire for cheap goods. Yes, that involves buying abroad - mostly China - but it's what consumers want. Amazing that those same consumers will complain and bellyache when their own manufacturing jobs are lost to overseas sweatshops. But these same consumers won't quit shopping at Wal-Mart.

Unfortunately, it's geting more difficult - if not impossible - to find many daily needs that are not "Made In China" or some other overseas location.

[Penner]

Again, these kinds of arguments appeal to many people. For example, all of us have heard of the theoretical owner of the small, independent hardware store who had to close his shop when Wal-Mart or Home Depot moved into his community, then suffer the indignity of having to go to work at the very place that put him on the streets. The former owner has a lower income than before, which is held up as proof that the "big boys" create and expand poverty.

This isn't "theoretical" because I saw this happen with my own eyes. A local family-run store that had been in business for generations went under shortly after Wal-Mart moved in. A few months later I saw the former owner stocking items in the automotive section at Wal-Mart.

[CSM]

Is that a WM issue or a Government gone amock issue?

[Question_Assumptions]

I think that was Wal-Mart really destroys is quality by demanding that suppliers maintain or even lower their prices regardless of how much it costs them to produce their goods. I've heard a couple of specific stories about how manufacturers sacrificed quality to keep costs down. Let's just say that you get what you pay for. If you want cheap, you get cheap. Paying half the price but replacing it three times as often is not a bargain.

[grellis]

You can't buy any baby equipment there which isn't COSCO (China Ocean Shipping COmpany) stuff.

Oh yes you can! When I worked at Target I generally stocked the infants/toddlers department and I always made sure that American made baby equipment outnumbered China-made goods on the salesfloor. And now I'm having a big brain fart trying to think of the manufacturer's names... I think Safety 1st was one, Graco may have been another one. I'd stock them on the shelves in a way that made the "MADE IN USA" sticker figure prominently for shoppers.

[Captain Rabbit]

I couldn't agree with you more. Eminent domain is absolutely abhorrent. IKEA has attempted. Wal-Mart. Trump. Etc.

I don't really fault the corporation for this usually, although they should definitely know better. It is the government that shoulders the majority of the blame in my eyes.

The corporation is just looking for more money, which is what corporations do. It's up to the government to protect individual (property) rights. Eminent domain is an obvious example where our government is failing in that regard.

[SomeCallMeTim]

Most excellent analysis. I grew up in the 60's in a small town in Texas (Angleton). There is no question that, the first Walmart killed several family-owned businesses. (If you doubt my validity, I'm talking about Brockman's, Cliff's, Taylor Hardware,etc...) Many of these families were friends of my family. And, for them, Walmart was clearly a terrible thing.

However, the city.. (and the Walmart) has continued to grow. I think an objective observer would be hard-pressed to say the city was "destroyed" by Walmart.

There are MANY other cases in Texas where the same thing has occurred. Wal-Mart definitely changes things... but, It's hard to see whether it's for the better, or worse...overall.

[phil1750]

I have several issues with Walmart, but my biggest is the fact that about 65% to 70% of all their employees are classified as part time. This means no health insurance, no job security and W/M pays very little in federal and state un-employement taxes. Walmart never fires any of these part-timers, they just keep reducing their hours scheduled until is is no longer practicable to even drive to work for a 2 hour schedule. My wife and I have been in Walmart less than 5 times in the past 3 years (and then spent very little).

[7thson]

Yes, I did know that.

About stuff made in China. Well, nearly everything is made overseas. Try to find something that is not. Also, while the people overseas are getting paid wages that we consider low, it is the best they have ever done. And people are working. About destroying neighborhoods. All I can say is that in Prince Frederick, Md., there was one hardware store - the only game in town before WalMart - that had high prices. The store is still there but it is forced to compete with WalMart. Some stores did close but again, for years they were the only game in town. With forced competition, they either had to put up or shut up. WIth the greeters - the funny thing is that as retired military, everytime I see the greeter, I feel I have to pull out my id and show it to her.

[7thson]

The one complaint I have with WalMart is that there never seems to be a worker bee around when you need assistance looking for something. If these greeters were following me, I could turn around and ask them to help me.