Thursday, April 19, 2012

Wal-Mart Welfare

Wal-mart is coming to town. The battle has been fought and won. But unlike the story, Goliath has won. Won at the expense of all the little David taxpayers who unknowingly wanted, and in many cases supported, the behemoth Wal-Mart's entree into their communities. What is meant by unknowingly wanted? Well, there are almost always costs to us when Wal-mart comes to town. Taxpayers want the low prices Wal-Mart brings, but they do not understand the costs of getting those low prices. The average consumer may spend a few hundred dollars a year at Wal-Mart, and save as much by buying at low, low prices. What they don't realize is, the consequence of getting those low prices may actually be costing them more than what they are gaining in savings. There are some easily identified costs that come in the form of bond referendums, sales tax rebates, land grants and so forth. There are also costs we, as taxpayers, incur as low wage jobs created by Wal-Mart require the use of more government services from unemployment pay outs, to healthcare, to housing aid, to food stamps and welfare.

Wal-Mart's history is a classic one; it wholly represents the American dream coming to fruition for a small town business man. And for decades, America has reveled in the story of its founder Sam Walton. He was a man that, although having amassed billions in his personal fortune, still ambled around town in an old pick up truck (one with a bad muffler at that). Sam Walton is a folk hero who used concepts such as selling higher volume at lower margins, retail membership clubs, and cultivating business in small towns to grow his business; and in doing so changed the face of retail forever (Ortega 27).

Wal-Mart has grown to be the world's largest corporation and the United States largest employer. Its sales are well over $400 billion dollars a year and climbing (Wal-Mart.com). It is arguably the most successful company in the history of mankind. So, why is it that a company, with unbridled girth and immense profits, needs you and me to help it by subsidizing its growth? Why is it that the Wal-Mart legal team will fight the same battles against its advancement, in community after community, as it tries to conquer the world? It seems apparent that as Wal-Mart marches into more and more communities, markets and countries that its opportunities for growth may start to dry up. If that is the case, then doesn't it need us more than we need it? In negotiations, the party who has something the other one wants has the power. We have things Wal-Mart wants: land, labor and paying customers. If the executives at Wal-Mart want access to our assets, they should ante up their fair share of Wal-Mart's costs incurred as a resulit of its entrance into our communities; and we should stop surrendering to their demands in so many battles.

To be continued...

Think About It

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