I just watched a documentary titled "Wal-Mart: The High Cost of Low Price." As the title may suggest, it's a very one-sided picture of Wal-Mart and many of its practices. If you want to win the argument on an issue, or put yourself in a good light, tell the stories of the individuals involved, the most disadvantaged and the ones with the least power. It's all the democratic party does. To base your decision on an issue as a whole on a few individuals is foolhardy. This sob story of a documentary fails (auspiciously ignores) to exercise an iota of critical thinking. I'll give my thoughts on many of the arguments against Wal-Mart.
1)Wal-Mart treats its employees unfairly, not paying them a fair wage, forcing them to work long hours or part-time hours, and charging high costs for medical insurance and other coverage.
No one is forcing these people to work at Wal-Mart. Each individual has weighed his/her options regarding work, and in light of the less than average way that Wal-Mart treats its employees (I will easily concede this fact), has still decided to work for Wal-Mart. If this is the best they can do they should either improve their worth to the working world or stop complaining.
The documentary showed how hard it is to raise two kids while working long hours for minimal pay. Hate to break it to you mom, but it was your decision to have two kids and now you have to reap the consequences. Complaining to the world and asking for a handout is the cowardly way to go about things. Own up to your mistakes and shortcomings, and make yourself a better person. You'll respect yourself more, more people will respect you, and you'll model a way of life for your kids that will be invaluable.
2) Wal-Mart forces many small businesses out of business.
It's true. And many, many family run businesses can no longer turn a profit. I feel for those people, I really do. That is the negative. If you ignore to look at the positive side, the incredible prices and selection that Wal-Mart offers to the masses, you are either ignorant and naive, or practicing irresponsible and devious journalism.
3) Wal-Mart has an unfair advantage because of their scale to begin with, and the subsidies that cities give them to open up a store.
Its not an unfair advantage to be good at what you do, relentlessly pursuing efficiency and perfection in every aspect of your business. We need more companies that work as hard as Wal-Mart, and have as unflinching a vision. No one is forcing these cities to give any money to Wal-Mart. Those in power must have deemed it to be worthwhile to persuade Wal-Mart to open in their town. If small businesses are complaining that they aren't extended the same treatment, then they should improve their business to the point that the city is willing to offer money. If your business isn't good enough to warrant that, then stop complaining.
The documentary also tells how subsidies to Wal-Mart could have been used for emergency services, education, and more in the local community. Great points. Go after your community or state leaders who approved the subsidy to Wal-Mart, not Wal-Mart.
4) Wal-Mart is approaching monopoly status.
As an economics major, this one really gets me. The second that Wal-Mart becomes a monopoly and is able to exert pricing power over the consumer, raising prices higher and higher, that is the exact second that mom-and-pop stores will start popping up, forcing Wal-Mart to lower its prices. The change will be swift and powerful. Wal-Mart will take advantage of people only as much as the consumer lets them. The consumer is the most powerful component in the market economy. Wal-Mart will give anything to keep its consumers happy and shopping.
And also, if the consumers in the small towns really cared about the mom-and-pop stores, they would have continued to shop there. Every mom-and-pop store that goes out of business is a testament to the decisions of the community to shop at Wal-Mart instead. That's an incrimination that no one wants, but many deserve.
5) Wal-Mart has poor environmental practices, and is detrimental to the environment.
I won't dispute this fact; I'm sure it's true. This is another indictment on the indifference and hypocrisy of the consumer. Those who really have a problem with this shouldn't shop at Wal-Mart. But I bet they do. I bet they love the cheap products. Isn't it saddening how easily beliefs, morals, and standards can be bought?
Also, as the green revolution grows, and penalties for pollution are legislated, Wal-Mart will have to pay up or change their practices. I bet they do whichever is cheaper for their bottom line.
6) False advertising.
If it's against the law, the FCC would do something. If it's not, it's up to the consumer to find out the truth, and not take everything they see in commercials at face value. The incredible flow of information these days should make that an easy proposition.
7) Poor working conditions in factories overseas.
It's undesirable to say the least. But we have an uninformed and restricted understanding of those people and their motivations. I believe a vast majority would rather work in the current conditions, for the current pay, than have to find a job elsewhere. Often times, when sweat shops overseas are closed down for poor working conditions, the workers who no longer have jobs suffer from worse standards of living than when they had their menial job in poor conditions.
8) The distance in earnings between the CEO and the average worker. Lee Scott made 27 million in 2005; the average worker made $13,000.
People don't want to admit this, but not everyone can do the job of a CEO. People feel that there should be some equality in pay. They just can't wrap their heads around the number 27 million. How could they, who are making maybe 20K, be "worth" almost 27 million less than another human being. Again, the market economy has spoken. If Lee Scott wasn't valuable for Wal-Mart, they would fire him and replace him with someone more competent. If the average worker making 13k was more valuable, they should quit their jobs at Wal-Mart and take that job that pays them more. If you can't find that job, you aren't worth 13k, let alone 27 million.
9) The Walton family is not generous.
Do they have to be? If you have a problem with it, don't shop at Wal-Mart and stop being a hypocrite.
At the end of the documentary it profiles several communities that have repelled Wal-Mart's. Here are some people who had beliefs, took a stand, invested their time and resources, and fought for something. They are to be commended. We need more people like them in the world, people who live what they believe.
Overall, people like to oppose the largest corporations and complain from afar. The reality is, if enough people were willing to take a stand against Wal-Mart and not shop there, not work there, Wal-Mart would have to change. Wal-Mart would have to change the things that the consumer finds most disconcerting. That's the incredible power of the market economy. If Wal-Mart continues to rake in record revenues and profits year after year, then many of those people who like to oppose Wal-Mart are acting in hypocritical ways. The sheer number of products offered in one place, prices far below the competition, and large numbers of jobs are too appealing.
