by
slenderdog | January 23, 2008 at 05:40 am
From David Nassar in the "Business" section of huffingtonpost.com:
It's a story told in towns across America: middle-class jobs are vanishing. Where once there were steel mills and auto plants, abandoned factories and Wal-Mart stores now stand. Companies that once employed hundreds of thousands of U.S. workers are now manufacturing overseas, abandoning not just individual workers, but entire communities.
Wal-Mart, and the companies that copy its business model, are largely responsible for the loss of these jobs. Wal-Mart's demands for ever-lower costs have forced dozens of American companies to stop producing in the U.S. and move operations overseas, where labor is cheaper and safety regulations are lax.
Hold on there a minute. That's a rather bold assertion. American industry can't compete with China and Wal-Mart is at fault?
Fact: people want to pay less for their purchases. Wal-Mart is successful because it provides consumer goods at low prices. What's wrong with that?
It's what people want.
Fact: Wages in China are lower than wages in the United States. Wal-Mart is not responsible for that. China is a developing country and the U.S. Dollar buys far more goods and services in China than in the U.S.
Fact: Costs are too high in the United States. We can't blame Wal-Mart for that, since their prices are low. We ought to look at Federal spending, the Federal Reserve, inefficient and corrupt corporations, and unrealistic labor unions.
Fact: If Wal-Mart didn't do it, someone else would. There are good profits to be made from the cost disparities between China and the United States. Wal-Mart is only responding to the market. There will always be a market for cheap goods. If American industry could produce cheap goods, Wal-Mart would buy more American goods. They can't, so Wal-Mart buys in China. It's that simple.
Of course, Wal-Mart can't single handedly reverse the damage and jumpstart the economy, but as the nation's largest private employer with 1.3 million employees and $350 billion in revenue, it could offer some relief to its own employees with a fair, living wage and affordable, quality health care.
Weasel words. After blaming Wal-Mart for the loss of American jobs, he allows that Wal-Mart can't reverse the damage. But, having invoked working class envy, he must conclude with an appeal for justice: more money and, uh, health care, that's it. Can't go wrong there.
Instead of praying for more copious feedings at the corporate tit, why don't we consider the possibility that the impending recession is in fact an opportunity to revitalize American industry? This is the way forward.
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