posted on Dec, 20 2005 @ 12:40 PM
Most of the vitriol over WalMart is spewed by people who do not understand basic economics, or who DO understand economics and would prefer that the
United States move from a mixed-economy to a command-economy. First of all, Walmart is only "worth" what it is worth because it creates "value"
in the economy. A source of inexpensive goods of every shape and size all under one roof. Not only does a shopper save on the price of the goods but
in his/her overall time and travel involved in those purchases. All economies are about the DISTRIBUTION OF GOODS. In lassaiz-faire economies (which
the US does not have) the consumer decides what should be produced and in what quantities by virtue of his demand for that product. Companies that
make what people want and need and can provide greater value than other companies will be rewarded for following the will of the people. At the
opposite end of the spectrum, command economies are dictated by beaurocrats in centralized locations. Ivan decides that this year the state will
produce 50,000 red sweaters, 20,000 blue ones, and 10,000 white ones and so forth. It doesn't matter what the people want, and they have something
similar to rationing which tells them what sweater they will get this year. This is incredibly difficult to manage. What is easier, to try to figure
out how much of EVERY single good to produce, or to just let people figure it out for themselves. Command economies are incredibly inefficient and
therefore have TREMENDOUS waste and overhead built into the cost of goods.
Here in the good ole US of A we have what is called a "mixed" economy. It is a combination of lassaiz-faire (French for "hands off") economy,
where consumers have their own money (which is just a distribution system) and make their own purchase decisions and command, where the government
decides how much of that money to take out of circulation via taxes and command that it be spent to purchase roads, dams, tanks etc.
When you grasp these concepts you will realize that the "evil" Walmart is only wildly successful because it serves the will of the people. In that
sense it is more egalitarian than any socialist society could ever be. And as soon as they "jack up the prices" they allow another competitor to
enter the market. Although they have some impressive competitive advantages, their size also offers large disadvantages. Walmart does not specialize
in anything. They offer inexpensive goods, but only a handful of the available product. Will they put businesses under? Of course, but I submit that a
"mom and pop" shop that is 2000 sq ft and is selling toilet paper, toothpaste and canned soup is destined to go the way of the buggy-whip salesman
anyway, Walmart just hastens the arrival of the 21st century. If you want to go head-to-head with Walmart offer products that you will never be able
to find there. Here's a hint, if it's mass produced in China don't put it in your boutique, you will get clobbered.
What most people who dislike or protest Walmart will not admit is that they are not just anti-Walmart, but also anti-capitalism, and anti-corporation.
They believe in things like "the collective" and "living wage" but do not understand that a products price (including labor) is determined by the
demand for it, and not a union's idea of "fair practice." The real reason that Walmart is so targeted is that they have successfully resisted
repeated and costly attempts to unionize their workers. People do not want to have wages garnished for a bunch of guys who pretend to look out for
them. You never get your money's worth. Our founding fathers called it "taxation without representation." However, at Walmart, you always get your
money's worth, and then some.
Before you take the anti-Walmart bait hook, line, and sinker, consider the source of the information. Also ask yourself if there isn't a little bit
of envy and resentment of the big guy. After all, everyone loves an underdog, and noone likes the gorilla in their midst.