Posted on 11/09/2004 1:11:34 PM PST by 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.
(Excerpt) Read more at pbs.org ...
While searching the Internet I found the bankruptcy statement from the owner of the business my husband used to contract out to. He stated that competition with places like Best Buy and the like had been the reason he was out of business. When I mentioned this to my husband, he thought it was funny. The reason this man lost his business was that even though his business had boomed he had not treated it as a growing business, but as the mom and pop business it had been years ago. He was still trying to rely on word of mouth, rather than spending more money on advertising. It was poor business decisions that ruined his business, rather than the success of other businesses.
I'm also 100% certain PBS won't badmouth CostCo, even though they use a similar business model, because it's owned by a Clinton-loving lib.
I'm also certain that any regulation the libs would like to put on Wal-Mart would be unconstitutional.
Yes, yes it is.
Target or Wal-mart, France or China? Either way American money is flying out of the country. IMO I want the fair tax plan to pass, then American companies can produce goods on the same level as foreign companies without all of our corporate taxes and fees.
Gosh, this may sound treasonous, but there may be some things more important to our future and present well being that just making money. We will have to live here up to our ears in disposable junk.
I don't get why Wal-mart is demonized while other retailers who utilize the same practices are left alone.
I guess some people just have to focus on demonizing something, anything. Regardless of how illogical.
But it was the people who decided where to shop. What is everyone's problem is this Communist night on the FR? People decide where to spend their money. People decide who to shop from.
As sad as it may be that mom and pop stores close down it is never permanant. My grandfather had a store for 30 years. It is closed. Why? Not Walmarts. Because another mom and pop store opened up across the street and ran him out of business. That store has now closed and a number of new one outside of town (in the new suburbs) is open.
From death arises life in capitalism. If you want the stores you grew up with to always remain in business move to Cuba.
Walmart = Red State
Costco = Blue State
Any questions?
Welfare on a continental scale. Thanks for the insight.
What makes you think Wal-Mart caused the demise of the downtown businesses? I saw downtowns closing down before there were any Wal-Marts. Property taxes, parking, zoning laws, permit fees, collecting sales taxes and general government interference are the real culprits.
Good competitor?
Walmart is the Standard Oil of the 20th-21st century. They've driven so many companies out of business in their pursuit of the almighty buck it's pathetic.
Here's what happens. Walmart approaches Joe's Factory to make socks. Walmart will buy 100,000 pairs of socks if Joe can sell them at $1/pair. That cuts it a bit thin for Joe's profit margin, but he figures to make it up in volume so he commits. Next year, Walmart asks him if he can make 1,000,000 pairs for $.99/pair. It's a huge order, requiring Joe to expand his factory, bring in extra workers, and borrow money to finance the expansion. So he signs a two year deal. Things go pretty well, though his total business is now dedicated to Walmart because his other customers have now lost their customers who can buy his socks cheaper there than at their shop.
Year 3 comes around and guess what? Walmart decides to play hardball. "Well, I guess we can still buy the socks from you, but you're going to have to improve your prices. If you can't sell them at $.50/pair, we'll take our business elsewhere."
Now Joe faces the same choice that hundreds of other manufacturers, contractors, and shippers have faced. They have expanded to accommodate Walmart, lost customers who were Walmart competitors, and are now in debt from the expansion. Their choices are: 1) keep producing, and pray that you can cut your costs 50%, knowing that it's likely you'll be bankrupt within a year or two or 2) decline the order, lay off 95% of your workers, and try to salvage what's left of your customer base and business.
That's not being a 'good competitor'. It's the same kind of tactics that Teddy Roosevelt got tough on 100 years ago.
Wal-Mart is fine if you like shopping in a cramped (over stocked), dirty, smelly store loaded with human trash and screaming kids.
"...100 years from now, PBS won't be able to have an "Antiques Roadshow." There won't be anything left from the early 21st century, because it was all cheap Chinese crap that fell apart in 10 years. And good 20th century American furniture will be worth its weight in gold..."
I've thought that, too. Go to a thrift store and you can still find wonderful pieces from the Fifties and sometimes Sixties that were American-made and are now considered collectible. But the stuff from the Seventies on is garbage.
We try to avoid buying made-in-China whenever possible - the furniture is all particle board and weighs a ton. That's how you can tell it's junk.
Depending on the product, sometimes Made in the U.S.A. items may be partially assembled in Mexico.
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