The Wal-Mart Manifesto

Slate ^ | February 24, 2005 | Timothy Noah

[The Loan Arranger]

H. Lee Scott Jr., the chief executive officer of Wal-Mart, argued in a speech yesterday in Los Angeles that Wal-Mart is a force for good in the economy. Scott is hardly the first corporate chairman to echo "Engine" Charlie Wilson's claim that what's good for General Motors is good for America. And many independent observers have noted that Wal-Mart's relentless downward pressure on overhead has been a boon to American consumers. (In a recent New Yorker column, James Surowiecki took this further, arguing that the retail economy has become a sort of dictatorship of the consumer, and that Wal-Mart, which earns only pennies on each dollar of sales, is merely doing what it must to stay alive.)

What's fairly new in Scott's speech (a related ad campaign was launched last month) is Wal-Mart's rising on its hind legs to tell the world that it is good to its employees. I'd thought it was a settled matter that Wal-Mart had achieved its miraculously low prices by squeezing its employees. Not so, said Scott:

Wal-Mart's average wage is around $10 an hour, nearly double the federal minimum wage. The truth is that our wages are competitive with comparable retailers in each of the more than 3,500 communities we serve, with one exception—a handful of urban markets with unionized grocery workers. … Few people realize that about 74 percent of Wal-Mart hourly store associates work full-time, compared to 20 to 40 percent at comparable retailers. This means Wal-Mart spends more broadly on health benefits than do most big retailers, whose part-timers are not offered health insurance.

[The Red Zone]

Not sure where you get this "most."

Anyhow -- if one really is a believer of the gospel of a free trade, then one must affirm that wages must be allowed to rise as well as fall in response to shifts in demand for the work. And that includes permitting private unions.

[endthematrix]

Free choices aren't always the best choice, and are deserving of criticism.

[GeronL]

Not forcing workers to join them and then hand their dues over to political causes they disagree with. That is hardly something workers appreciate.

and wages do rise and fall with the market. A lot of factories moved from Japan to South Korea and then to China over the past few decades.

[The Red Zone]

Until China lets their workers have an economic voice in their own trade, it's only a show. If you have a better means than unions to bring this about, by all means present it. But the plantation master's power must fall.

[goldstategop]

I'm in favor of free unions. If workers want to bargain collectively and enter into signed contracts with a company they should have that right. As long as the members choose their leaders and local shop stewards, I don't have a problem with it. Free unions represent a check on the excesses of Corporate America. Absolute power corrupts absolutely.

(Denny Crane: "There are two places to find the truth. First God and then Fox News.")

[GeronL]

Unions aren't going to change anything in China until the communists are out of power.

[The Red Zone]

Why of course, what they call unions now are only organs of the state. The people must rebel.

[GeronL]

and if they do they might not need a union

[Tacos]

Amen.
Problem is that that type of union is mostly from the past.

[ran15]

I agree.. They also have an efficient management structure. It looks pyramidal, unlike many of their competitors who have interesting shapes. With say 6 people making 100k a year having endless meetings iwth each other coming to consensus. Where instead Walmart will have one manager in charge, with more decision making ability.

Walmart has also refused to sell many of the smut level magazines that are destroying the culture. The left hates that.

And what scares the left more then anything is Walmart's growth. And with the sheer size, plus amazing growth Walmart can move into many industries. Infact it almost took over banking, but the government stepped in to stop it.

Can't have customers getting cheap and efficient banking now can we?

[endthematrix]

Re: They are not forced to do it.

Force is relative. Economics has a way of personal persuasion. In a free market, if you don't have sh*t for money, you shovel it for a buck. In Communism, you are given work assignments and falling from the party line will prohibit you from attaining housing, cars, etc.

[Common Tator]

Charlie Wilson's claim that what's good for General Motors is good for America

Always believe the media because the media is only wrong in areas where you know the facts!!

[Tacos]

"And what scares the left more then anything is Walmart's growth. And with the sheer size, plus amazing growth Walmart can move into many industries. Infact it almost took over banking, but the government stepped in to stop it.

Can't have customers getting cheap and efficient banking now can we?"

Don't want monopolies/no competition either. If Wal-Mart gets to that point, they will get stepped on...hard.

[ran15]

China has the fastest growing economy on the planet, and all the left can do is complain about alleged slave labor. While denying slave labor exists in their favorite nations like Cuba.

In the last 25 years since the reforms started, aka moving to a free market economy, China has brought more people out of poverty then the rest of the planet combined. And no unions there at all!!

All the left can do is put free tibet stickers on their car, and curse Chinese goods. (and curse the right for not donating enough to poor people in the world).

[The Red Zone]

A lot of the right curses Chinese goods as well. And will do so until the power of communism dies there.

[GGpaX4DumpedTea]

"Free unions..."

Name one.

[ran15]

Exactly the only places unions survive are in the choke points of an economy.. aka port workers, air traffic control, electricity workers etc.. Where they can hold a nation hostage..

And in the government. Something like 7 million of America's 12 million union workers... work in the government. There they can extort whatever they want, because there are no market forces acting. The state simply raises taxes whether people like it or not.

[endthematrix]

Wow, China has an "efficient management structure" the "fastest growing economy on the planet" and "brought more people out of poverty then the rest of the planet combined".

"And no unions there at all!!"

Of course not. I sure the Communists would open a slot in the Party for your progressive statements!

[risk]

You've perturbed the cult of Adam Smith. Do his rules apply globally where laws are selective, if they exist at all? Whatever Wall Street wants and needs is always best for America, as far as the cult is concerned. Never mind that China is building a world-class military with its financial power. Never mind that China is exporting revolution to Nepal and South America. Never mind that the Chinese government is subsidizing these cheap factories with free land. Never mind that the Chinese environment has been polluted beyond recognition. Never mind the unsafe conditions in which they work. Wall Street, more than 50% owned by foreigners, wants Wall Mart. People want cheap toasters and are willing to sell America's future for a deep discount. What is there to do? Login to FR and defend Walmart: it's the epitome of free market success! Not really, not when it can't use reasonably-paid labor in an economic climate where the rule of law is in effect. But don't contradict the cult of Adam Smith. That's sacrilege.

[KLH523]

"Wal-Mart, which earns only pennies on each dollar of sales, is merely doing what it must to stay alive"

"Merely doing what it must to stay alive?" Is that why numbers 4-8 on the Forbes 400 are Waltons?

http://www.forbes.com/2002/09/13/rich400land.html