Is Wal-Mart Good for America?

PBS ^ | 11/8/2004 | Press Release

[Willie Green]

In Circleville, Ohio, population 13,000, the local RCA television manufacturing plant was once a source of good jobs with good pay and benefits. But in late 2003, RCA's owner, Thomson Consumer Electronics, lost a sizeable portion of its production orders and six months later shut the plant down, throwing 1,000 people out of work.

Thomson's jobs have moved to China, where cheap labor manufactures what the American consumer desires--from clothing to electronics--and can buy at "everyday low prices" at the local Wal-Mart.

On Tuesday, November 16, at 9 P.M. on PBS (check local listings), FRONTLINE® explores the relationship between U.S. job losses and the American consumer's insatiable desire for bargains in "Is Wal-Mart Good for America?" Through interviews with retail executives, product manufacturers, economists, and trade experts, correspondent Hedrick Smith examines the growing controversy over the Wal-Mart way of doing business and asks whether a single retail giant has changed the American economy.

[MrCraig]

Americans have long bought into the "cheaper is better" and often choose price over quality, service etc. The Wal-Marts and China's are there to satisfy that need. Until America are ready to put their money where their mouth is Wal-Mart and China will flourish.

[pepperhead]

Thomson's jobs have moved to China, where cheap labor manufactures what the American consumer desires--from clothing to electronics--and can buy at "everyday low prices" at the local Wal-Mart.

Most of the tv's on the shelves last time I looked were made in Mexico. RCA problems didn't start because of Wal-mart. They started making crappy tv's and the consumers didn't want to buy their product anymore. The rest of the tube manufactures are not doing much better. But at least they were not cutting corners on their solder.

[mombonn]

Must be the only one like it in America.

Yup, most of them as as yucky as the WalMarts I've visited!

[Getsmart64]

"In addition I do not mock anyone who does buy their furniture from walmart or any other store cause I was the poorest kid in my neighborhood and I discovered that people should "mind their own business" when it comes to an individual's economic situation"

I'm not trying to put anyone down...as I said..I have a Souder entertainment center, a Souder TV/VCR stand etc...the point I was trying to make is that citizens of other countries tend to take stock in their country...whatever the cost...

[Modernman]

A country which can't produce it's own goods is doomed because at some point this wonderful Globalism that everyone finds so appealing is going to fail.

The US has the technological capacity to make literally any product that humanity has ever invented. However, it doesn't make sense for us to use our super-duper economy to make shower flip-flops and cheap children's toys. Instead, we build high-technology items that are, in some cases, worth much more per ounce than gold.

Despite the wailings of the nay-sayers, our economy keeps growing and our standard of living keeps improving. And yet, some people are worried because we no longer have a textile industry in this country.

[xzins]

If offering to consumers low price goods in a large single-stop mega-store is good for America, then Wal-Mart is good for America.

I've been in Malls all over this country, and to honest, they're all pretty much the same 30 to 70 stores.

Why pick on Wal-Mart?

When Wal-Mart prospers too much is usually when Moms & Pops refuse to change their tradition and stay open past 6 or 7 pm....very family un-friendly.

[sittnick]

I don't have a problem with buying from countries whose governments are relatively civilized. So, while buying American is nice, I won't wince over buying Canadian, Japanese, German, etc.

Tinkwer Toys are now made in red China. I paid more for my girl to play with USA Fiddlestix. Playmobil is a company that makes many of their children's toys in Malta, one of the most wonderful places in the world to be a citizen.

I order computer gear for my company, so I realize how difficult it is to completely avoid Red China. That USA made modem, that Irish built laptop, they have Red Chinese power supplies.

It gets scary when companies like United Technologies puts sensitive, classified technology with military applications within arms reach of the Red Chinese in order to save a few bucks.

There has to be a limit to how much the dollar rules. Until a few years ago, Major League aseballs were made in Haiti. Now they are being made in Red China. Who will tell me that the Haitians were ripping us off? Those people have NOTHING! To take away their one trade because the Chicoms can sell the same product a penny or two cheaper is criminal. The NHL stopped buying Chinese made hockey pucks, because they SPLIT twice during games ... something that had never happened even once in the entire history of the NHL.

The companies that set up factories there necessarily lessen their allegiances to other countries, and because they know that the Red Chinese government can seize those factories on a whim, dance to their tune.

Buying Amwerican is nice, but I am just as happy to buy from the countries whose traditional products have been poached by the Red Chinese.

[winston61]

My beef with Wally World is corporate welfare. They are supposed to be the most profitable retailer in the world, right? In the town where I live the city fathers forked over $7,000,000.00 in taxpayer funded give aways to get a distribution center. Mean while the local downtown looks like a ghost town. Local business closes down and quality and choice of goods goes out the window. Don't these moral values that everyone goes on about apply to our corporate citizens? Or is the rule 'socialize losses and expenses and privatize profits'?

[rgrun]

You stated "...wanna buy a $70 DVD player every couple of years or do you want to buy a $500 dollar DVD player every 10 years....you buy from Wal-Mart"

Let's assume that you do have to replace a DVD from Walmart every 2.5 years for $70 rather than $500. If you take the difference of $430 and invest in the marekt with a 10% return and replaced the DVD every 2.5 years you would have 4 DVD players (perhaps 3 not working) and $480 in the bank. So if you can buy cheaper products that you want and have more disposable income for things like investments, then yes Wal Mart is good for America.

[NCLaw441]

You said: The world has NEVER been a fair trading place. But what has accelerated it a lot is our own desire to beat down our companies. That American companies are all about profits and abuse American employees. Until we change that attitude we will lose jobs.


Yes, American companies are about profit. Are employees not all about income? Consumers have loyalty to quality and price. America CAN compete, but it is not realistic to think that we can provide goods at low prices while paying employees more than they are worth. The solution for employees is to be WORTH more to an employer. Look at what passes for employees in the workforce today. It is a wonder we survive at all. But that is not WalMart's fault.

[winston61]

Yes and you've got more cheap chinese junk going into a taxpayer funded land fill. But at least you made some money, right? Isn't that the most important thing?

[LittleRedRooster]

I hate looking for parking.

Why would you have to look for parking, I always park pretty far out and not only do I not 'look' for parking I get in a nice walk as well.

[Getsmart64]

Dude...I'm an American working for Uncle Sammy overseas...it's not MY EU....I'm pissed that I have to rely on the local economy so much instead of the AF Base...but that's another story...but what i do know....I haven't yet met an Italian that likes the Euro...they all want to go back to the Lira.....not many Italians are happy about the whole EU concept...

[GOP_Raider]

What about Target? Is Target good for America??

My ex girlfriend was a manager at a Target so....no.

:-)

[Modernman]

Yes and you've got more cheap chinese junk going into a taxpayer funded land fill. But at least you made some money, right? Isn't that the most important thing?

In the example he gave, you are able to have your DVD player while at the same time investing the money you saved. You're better off as is the stock market.

What's the problem?

[trashcanbred]

I am sorry I did not mean to imply you were putting anyone down. I think I simply should have said that some people cannot afford the more expensive (yet better quality)furniture that is made here in the US. When I went to college many bought from IKEA and I simply had cinderblocks and 2x4's for bookshelves.

[trashcanbred]

Welcome to FR!

One can argue that the Chinese goods coming in are junk. I for one try my best not to buy it. However it isn't really in the best interests for anyone to tell people from whom they may buy from.

[Windsong]

"I recently visited a WalMart and the place was a disaster"

Yes, thats what I think as well. Went last night with the wifey and the place looked like a effin CIRCUS tent, AFTER the elephants had took care of their business. I could live with being near one if they would just clean up the place. Instead its known as "Mall-Wart".

Ugh...

[trashcanbred]

I have read a number of articles that they import from North Korea slave labor camps and then throw on the "Made In China" labels...

That would not be surprising.