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.

[Dems_R_Losers]

I just paid $1000 for a solid cherry TV cabinet made in America by Baker Road. Beautiful piece of furniture. No way I would buy a cheap piece of Souder crap from Wal-Mart. I've been buying a lot of furniture lately for a large new house, and I have bought American-made whenever possible, no matter how much I could save buying Chinese. (I did buy a Canadian bedroom set, but only because I liked the style so much better than any of the American stuff I saw, not because I saved money.) It has been depressing to hear retailer after retailer say that I should buy American now, because the American furniture makers are going out of business. You can easily see the difference in quality between a cheap Chinese made dining room set and one made in the USA. The Chinese stuff is just crap. American made furniture is the best in the world, but Americans don't seem to care about quality or craftsmanship anymore.

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.

[Phantom Lord]

This is a loaded question. If it were not WalMart it would certainly be something else. How about it's sister store, Sam's? Sam's was king of the hill but along came Costco. If we wait long enough something will run a race with WalMart.

One thing I like to do when people rail against a big company like Wal-Mart, Microsoft, etc... is have them do some historical analysis.

Take a look at the 100 largest companies 100 years ago. Many of them NO LONGER EXIST! Same with the 100 biggest 50 years ago. Companies come and companies go. Wal-Mart, Microsoft, etc... will all be taken over by a competitor one day who does it bigger, better, faster, and cheaper.

[Alaska Wolf]

It's not whether Wal-Mart is good for America, it's about choice. We have million dollar homes and those for a hundred thousand; fifty thousand dollar vehicles and those around ten thousand. Cheap fast food outlets didn't affect good sit-down restaurants. If you give good,friendly service, have reasonable prices and decent location, I doubt you'll lose much business. Competition is a good cure for complacency.

[uvular]

And CNBC will have their own special about Wal-Mart Wednesday at 7pm est. At least the taxpayers won't have to subsidize CNBC's effort to downgrade a successful American business.

[RightOnline]

"People want the low prices, the schlocky goods and they don't care about slave labor in China so long as they can buy a lot for less."

In this day and age, largely a myth. Not the China of thirty...or even ten.......years ago.

[lilylangtree]

Wal-Mart has got some good bargains. I don't have a problem shopping there, being a penny pincher that I am.

[sinkspur]

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.

Actually, because of globalism, consumers have a wider selection of merchandise at lower prices than at any time in history. That is a good thing.

When millions of your countrymen are in the souplines because they can't get a job at Walmart what will you say?

This is maudlin, silly hyperbole.

[jveritas]

That is why your EU economy is stagnant because you do not spend money continuously.

You make less money than us, you are taxed more, and everything is more expensive. You are doomed for failure.

[A Ruckus of Dogs]

that because of Walmart(we call them the Big W in the industry) 17 hosiery manufacturers have gone out of business in America in the last year.

Hosiery companies have been losing money for a long time due to the trend in dress-down at work. Wal-Mart just dealt the final blow.

[Lokibob]

Thomson was a Canadian company for many years.

There has not been a TV made in the U.S. for 15+ years, and there has never been an American made VCR.

[Getsmart64]

Well...gee...thanks for the support..:)

[sittnick]

Why doesn't Walmart try to move into the older, abandoned city centers? Here in Ct Walmart was recently shot down near the highway.....but a short mile from this site is a perfectly good, older downtown setting.

I have lived most of my life in Connecticut, and while I do not carry Wal-Mart's water, didn't Grants, Caldors, Barkers, Mammoth Mart, Stars, Treasure City, The Meriden Square, the Enfield Square, West Farms Mall, Ames, K-Mart etc. kill the downtown stores (Edw. Malley's, Macy's, G. Fox, numerous Mom-n-Pops) long before Wal-Mart came on the scene?

In Wallingford CT, a brand new Super K-Mart went up in anticipation of a Wal-Mart. It was no contest ... despite Super K's 24 hours and groceries, Wal-Mart clobbered them and will soon take over the Wallingford building in order to expand on the cheap. Frankly, I doubt that the downtown stores in Wallingford noticed one way or the other.

[Araos]

Isn't this just redistribution of wealth, from non Wal-Mart shoppers to Wal Mart shoppers. Do we, the tax payers, subsidize "the cheap goods"?

See Wal-Mart's support of illegal immigration costing our consumers:

http://www-tech.mit.edu/V123/N51/long_2_51.51w.html

See State health insurance costs:

http://www.retail-merchandiser.com/retailmerchandiser/headlines/article_display.jsp?vnu_content_id=1000696555

Have these been addressed already?

[dljordan]

Well, I don't think you're right but that's my opinion. If you think that consumerism is good enough reason to betray you're country then that's your lookout. I would rather pay more, send the H1b's, L1's and Illegals home and keep our country strong. Social Darwinism is maudlin.

[ProudVet77]

Just so happens I buy New Balance since I have a wide foot too. And I am glad I can buy a good American product at a good price. Even happier since NB is about 15 miles from where I live.
Having said that, do most people realize there are no TVs made in the USA anymore? Or DVDs or VHS players?
I agree it is better for us as a country to buy our own products. But Dell computers are all built overseas for example. I have two cars, an 88 Pontiac Fiero and a 98 Jeep Wrangler. But now I refer to my Jeep as my Mercedes. Buy smart, and buy American.

[Sybeck1]

With a protectionist mindset, only the John Kerry's of the world could easily afford the computers we are on now.

[trashcanbred]

The only thing I can criticize here is that many of the largest companies 100 years ago were not all that big compared to the multinationals. Business in America has change drastically in that time frame and so I am not sure the analogy is correct.

If you took the largest companies of the last say... 75 years of even 50 years you would see most are still here. GE, GM, Ford, IBM to just name a few.

However I don't argue with the fact that the large companies do fall. My wife used to work for Toys R Us in their Data center and they were the biggest baddest toy store around. They were taking over the Japanese toy retail business and they looked poised to be the major player. Now Toys R Us announced they are looking for a buyer because Walmart has hit them hard. See the story "Toys Were Us" at http://www.eastvalleytribune.com/index.php?sty=31191

[Getsmart64]

Dude...don't get me wrong...I LOVE Wal-Mart....but...but...I don't buy clothes at Wal-Mart...you're lucky if they last a season...I don't buy electronics at Wal-Mart....I will buy dry and canned foods at Wal-Mart...and basic necessities...but quality goods??...get out...and do NOT equate a grocery store like Albertson's to Wal-Mart...no comparison....and I have spent some time in Idaho...where the owner of Alberson's started his business....

[onyx]

Doesn't the W in WKB, stand for Walmart?

[annyokie]

Do you have an Atwood's farm store near you? We go to the one in Vinita, about 30 minutes from us. They have everything except kids shoes. I have bought jeans for the boys for less than $6. They have triple boxes of jigsaw puzzles for $5, 3 pound cans of coffee for $3 and pratically giveaway prices (35 cents) on packages of seeds.

Give it up with their website, though. It is terrible and has zero information.