The Walmartization of America Redux: How the Relentless Drive for Cheap Stuff Undermines Our Economy, Bankrupts Our Soul, and Pillages the Planet

[one...two...tree 2,762]

If you want to know why the middle class disappeared and where they went, look no further than your local Walmart. People walked in for the low prices, and walked out with a pile of cheap stuff, but in a figurative sense, they left their wages, jobs, and dignity on the cutting room floor of the House of Cheap.

Welcome to the logical end point of Reagonomics. Welcome to Ayan Rand's nightmare vision of morality, where we know the price of everything but the value of nothing; where predatory behavior is celebrated and the notion of community is blasphemy.

In his excellent documentary, Walmart: The High Cost of Low Price, Robert Greenwald carefully documents how Walmart's giant box stores lower wages across the entire retail sector, impose high social and economic costs on the states and communities in which they operate, and destroy local businesses.

Yet the low prices – which come at such a high cost – are irresistible to American consumers. Walmart has virtually cornered the retail market and amassed astounding wealth in the process.

But it's not just Walmart. Big box stores now rule across the board in the US retail economy in everything from electronics to pet supplies. And it's not just retail. The entire US economy is now organized around the notion that getting us cheap stuff – the more the better – is the sine qua non of economic policy.

There was a time when corporations understood that paying their employees a living wage had economic and societal benefits. Henry Ford famously said he wanted his employees to be able to afford to buy the cars they made and launched six decades of prosperity.

The labor movement helped create a social and economic compact in which workers shared the wealth they generated. When workers had enough money to consume, they stimulated economic growth. When production was as important as consumption, the economy flourished, the common worker had dignity, and the means of production were valued.

But that compact has been sacrificed at the Alter of the Cheap, and we no longer produce, we merely consume.

Our main economic activity has become the ceaseless churning and manipulating of the vast capital the old system produced. No value is added, some is skimmed off by the uber rich with each churning. It's a colossal, self-limiting, Ponzi scheme.

The rich and the corporations have no allegiance to the US or its workers, and so they take the fruits of their skimming and either sit on it, or invest it overseas, where the cheapest goods can be made.

Job creators? Sure. But not good jobs, and not here.

When they've skimmed all they can from the US consumer, they'll focus on the emerging middle class in China, India and elsewhere, leaving us to sit among the decaying detritus of cheap stuff we can no longer afford, searching in vain for the happiness we thought we were buying.

It's a sprint to the bottom. Lower wages; dangerous working conditions; more pollution; greater liquidation of natural capital; more global warming; less happiness.

Globalization – the handmaiden of Cheap at All Costs – is celebrated as a solution, when it is the problem. And even astute economists seem unable to realize that when another country's comparative advantage is based on environmental crimes, low pay, and inhuman conditions, then comparative advantage doesn't operate the way it's presented in textbooks and abstract econometric models.

Globalization has enabled corporations to leave the old economic compact based on equitably shared wealth behind. For example, in the US, CEO pay is once again soaring, while the average wage earner hasn't kept up with inflation.

Just as Walmart has driven down wages throughout the retail sector, the Doctrine of Cheap has driven down wages for the developed nations, and it will cap them at unjust levels in the developing world.

And the dirty little secret hiding behind the globalization façade is the devastating affect it is having on the environment.

For example, this week, Bejing suffered from air pollution so severe, that the airport was shut down. It's easy to ignore this kind of environmental insult when it's "over there." But the carbon and soot and filth generated in China ultimately reaches us.

At the scale of human economic activity we've reached, we suffer the environmental consequences of our purchases no matter how cheaply or how far away they are made. In a world were humans have become a global force of nature, "there" is "here." Climate change is exhibit A in how insults to our commons affect us all.

But the dirtiest little secret of all, is that we – the 99% -- enable this race to the bottom. Our addiction to cheap stuff and our desire for more, more, more is the fuel that feeds this destructive Ponzi scheme.

But there is good news here, too. If we are the enablers of the Walmartization of America, we have the power to change course.

How?

We are the marketplace, and we decide who wins and who loses by where we park our money, what we invest in, what we choose to buy and who we choose to buy it from.

Think about it. We purchase about $80 billion dollars worth of stuff a day, not including what we spend on our homes, cars and normal household bills.

We hold a total of $17.5 trillion in retirement funds – the single biggest source of money the big banks, Wall Street, fat cats, and assorted other speculators use to play their very own version of hi-risk Texas hold 'em.

The real power in our economic and political system resides with us, the 99%, if we have but the wit, wisdom and courage to seize it.

So forget Wall Street. Let's occupy the whole damn marketplace. Let's vote with our dollars and our values. That's an election they can't buy.

http://www.commondre...ew/2011/12/16-4

[Obama 2012 1,714]

I can't read this drivel.

Why am I not surprised Steven is posting this either. All Mr. High and Mighty liberal working for the big banks, wall street, etc..

The article is flat out WRONG.

This isn't "Ayn Rand" economics at all. Ayn Rand would equal no government intervention in the marketplace. This is a TON of government intervention. We haven't had a "free market" in over a century. To even suggest such is ignorant and irresponsible.

You want to look at the real culprit, look towards inflation. Look at the Federal Reserve printing trillions of dollars that's completely worthless and continuing to drive the value of the dollar into the toilet.

Businesses, especially manufacturers cannot survive when inflation is so damn high and when there's an expectation for a job to pay more than it's worth. We've become a society so closed off from reality in the name of greed, that it's not even a bit funny. The wealthy are greedy and the poor are greedy. EVERYONE is guilty in this country because of the lifestyle we lead. It's a good life, to say it isn't is an outright lie. You want to see a "bad" life, go ahead and move into the Congo or some other poor African nation. How about you move to the country in an Asian country and see how well you adapt and like it. Most wouldn't survive a week.

This article is full of ####### and has no earthly idea what's going on with our "Walmartization."

The sad part is, if we didn't have someone like Wal-Mart because of what's been done to our country because of government interference and inflation, we'd be in a ####### ton of trouble worse than we are now, and that's the truth.

[Susita 175]

Steven, have you seen this? I really think this is a good visual that has a good deal to do with what that article talks about.

[Darnell 8,479]

I really hate it when my op-ed's get plagerized.

on a lighter note - Welcome To China[tm] !

[Mr. Big Dog 10,747]

You want to see a "bad" life, go ahead and move into the Congo or some other poor African nation.

Why? Just hang out a little while, vote GOP and Africa will come to you before you know it.

[Gary and Alla 3,694]

Another reason to apply a horrific TAX on employers that hire illegal aliens. Besides the abuse and exploitation for profit, they undercut our workers wages. We have to make it economical suicide for an American employer to profit by exploiting humans!

I am sure you agree Steven, right?

[Mr. Big Dog 10,747]

Another reason to apply a horrific TAX on employers that hire illegal aliens. Besides the abuse and exploitation for profit, they undercut our workers wages. We have to make it economical suicide for an American employer to profit by exploiting humans!

One of those things we agree on, Gary.

[Gary and Alla 3,694]

One of those things we agree on, Gary.

You're learning.

Seriously, it is good news, because I know you are NOT a racist.

Edited December 17, 2011 by Gary and Alla

[Mr. Big Dog 10,747]

You're learning.

Seriously, it is good news, because I know you are NOT a racist.

I've never been a fan of human exploitation and I've always maintained that a big step towards stopping human exploitation is to end illegal immigration. The best way to do that is to remove the reward - which is wages. People immigrate illegally to make money. Take that incentive away and they won't come. Those here will leave. The easiest way to take that incentive away is making it impossible for businesses and individuals to even consider hiring illegal immigrants - a huge tax on each count and even jail time for repeat offenders will easily do that trick.

[Gary and Alla 3,694]

I've never been a fan of human exploitation and I've always maintained that a big step towards stopping human exploitation is to end illegal immigration. The best way to do that is to remove the reward - which is wages. People immigrate illegally to make money. Take that incentive away and they won't come. Those here will leave. The easiest way to take that incentive away is making it impossible for businesses and individuals to even consider hiring illegal immigrants - a huge tax on each count and even jail time for repeat offenders will easily do that trick.

EXCEPT, jail time is not needed. Businesses are in business to make money. They make more money hiring illegals, that is why they do it. If we make it too big a risk, they will not hire the illegals.

The problem with jail time, or fines, (I do not suggest fines) is that they require DUE PROCESS And I assure you defense attorneys would want separate trials for each count, the law would be economically impossible to enforce and would not work.

Make it a TAX! The IRS can padlock the business and sieze property without a court order. The exploitation and employment of illegasl would END the day the law went into effect. Within a week 90% of the illegals will be gone. If we haven't fenced them in. The employers will have to raise their pay and benefits (just like Steven's article suggest be done for legal workers), prices for products will increase but costs for supporting/subsidizing the illegal workforce of employers will also end.

[Misha & Ira 113]

Here is a class act that supports Wal-mart

[Brother Hesekiel 2,236]

You are preaching to the choir!

We are allowing corporations to #### us up the you know what! I buy local, at the Farmers Market and at the hardware store around the corner whenever possible. And I buy Made in the U.S.A. whenever possible. If we all did that, WalMart would close its doors.

People save a few dollars but at the expense of losing their job. How smart is that? Not!

We The People decide with our wallets where we buy and what we buy. If somebody would explain this to the retards with U.S. passports, the problem of outsourcing and multi-national corporations controlling U.S politics with their truckloads of money coming from the retards with the U.S. passports would be solved.

If you go to the local vendor and ask for a product, and add: "but I buy only something that's made in the USA" they will sell only stuff that's made in the USA and thus corporations will move production to the USA and these places will need worker . . . in the USA.

Americans in general are so f*cking stupid, it hurts. All of the sh*t we are experiencing is self-inflicted. Anybody buying a WalMart deserves to lose their job, their house, and end up in the gutter. Yep, I mean it.

[mawilson 2,133]

If you want to know why the middle class disappeared and where they went, look no further than your local Walmart. People walked in for the low prices, and walked out with a pile of cheap stuff, but in a figurative sense, they left their wages, jobs, and dignity on the cutting room floor of the House of Cheap.

Yep - sounds about right.

[Gary and Alla 3,694]

So here is an idea. Let's set minimum prices for everything, kind of like we set minimum wages and minimum benefits, payroll taxes and employer mandates. Let's say that if that TV or computer of roll of paper towels WOULD cost say 3 times more. then we raise the price to that so there is no longer an incentive to move jobs overseas. Good idea?

Do we do it by tarrifs (taxes) or do we just let Walmart triple the price and pocket the cash?

Put a pin in that.

I sincerely doubt anyone is offended by low prices. I am guessing you even look for good deals yourself, even if you buy only American products, you still shop the price, right? So low prices are not the "problem" I have not heard anyone suggest banning "sales" or coupons or rebates or anything else that lowers prices.

I bet you even order online which undercuts prices even more and throws thousands out of work by eliminating brick and mortar stores, not mention construction jobs, sales tax revenues for cities and states, real estate taxes. Hey Bob, what should happen to someone that buys something online? You think Walmart hurts small business? What about Amazon.com?The entire video rental industry has been decimated, thousands of stores closed, thousands of small business people put out of business, tens of thousands of jobs lost...because of NetFlix? Sales tax revenue and property tax gone, tenants for commercial ahooping centers, gone. What should happen to someone that watches NetFlix, Bob? Maybe hit squads in the shadows near "Redbox" locations?

The problem is what these low prices represent. They represent private manufacturing business avoiding the costs of our wage and hour laws, payroll taxes, workman's comp, etc. I agree it is not fair and the majority of jobs lost in this country to foreigners are lost to people that never will come here. But these manufacturers COULD move their business, so they did and they pocket the profit (Walmart is just a retailer, an outlet for the cheap products, they do not produce the low prices, and they use legal labor and pay minimum wages that are dictated by government) There are virtually NO electronics made in the USA anymore, who are they supposed to get them from? Holy #######, even Burton Snowboards moved their manufacturing to China from Burlington. Why?...labor costs too high! They could not compete with K2 making their boards in China. Pat Leahy and Bernie Sanders were NOT happy campers!

Now imagine you are a roofing company or a landscaper. Well, you cannot do your job in China, it is a service job and you MUST do it here. So you hire illegal aliens to avoid the same costs manufacturers avoid by exploiting overseas labor, which we call sweat shops. But we do not apply the same term to the illegal cutting your lawn? Shingling your roof? Instead we blame ...Walmart?

Bob, if someone that simply buys something at Walmart deserves all that horrible treatment, what should happen to people that hire illegals so they can pocket more $$$ ??? Are they worse than Walmart? Or better than Walmart?

So enough whining. No one suggested a solution but that is what I do I guess. Most people just whine and stamp their feet and others say "yeah, thats about right" Maybe we should just "Occupy Walmart"

How about this instead...

1. A HUGE tax on any employer that hires illegal aliens making it economically impossible to do so.That fixes the problem of service sector jobs

2. Eliminate every form of income tax, business and personal. Replace it with the FAIR TAX. This will make the USA the ONLY country with a corporate tax of -0-. This fixes the manufacturing jobs, or at leqst tip sthe scales WAY back in our favor. Foreign LABOR may still be cheaper, but will it be cheap enouch to offset the taxes, logisitcs costs, difficulty of getting materials, etc.? Possibly for some manufacturers, but then China wins fair and square.

[Rebecca Jo 1,962]

I really hate it when my op-ed's get plagerized.

on a lighter note - Welcome To China[tm] !

bullsh*t