Page 1 of 3 123 LastLast
Results 1 to 10 of 25

Thread: Walmart as a Case-Study in Globalization

  1. #1
    Senior Member
    Join Date
    Mar 2004
    Last Online
    Tuesday, July 26th, 2005 @ 03:22 AM
    Gender
    Posts
    766
    Thanks Thanks Given 
    0
    Thanks Thanks Received 
    4
    Thanked in
    4 Posts

    Post Walmart as a Case-Study in Globalization

    [My comment: I considered posting the brief article below in the 'America' thread, but Walmart, and the effect it has on local communities, is also an instructive case study in the distribution of costs and benefits from globalization. One could search for and find many more articles exemplifying the themes raised in this one.]

    The True Cost of Things
    Why Wal-Mart S.U.C.K.S.
    (Senseless Uneducated Consumerism Killing Society)
    By Richard Baynton, co-founder of Alternatives Magazine

    The day Wal-Mart came to town, the townsfolk were downright joyful about it. A huge, brand new, job-providing, property tax paying mega-store planting itself on the edge of the community. And did I mention huge? And amazingly low prices, too! Get the kids! Let’s go shopping!

    And they did. Suddenly that $25 widget at the downtown hardware store could be had for a mere $14.95. Incredible! Film developing at the local camera shop was way too expensive now. Prices at the market down the street? Forget about it! Too high compared to the brand new superstore. And the convenience! Food, car batteries, electronics, books, beer, clothes, jewelry, and more, and more, and more… The local unemployed lined up for the new jobs, thrilled at their fresh prospects for a steady paycheck and the self-respect society confers on those with a job. So what if it pays only minimum wage, with minimum benefits . . . it’s a job!

    The vast parking lot overflowed, the “deals” crowded like cornucopia in consumers’ carts, and all was well in their world.

    Well, sure, there was that “Going Out of Business Sale” sign that appeared in one of the downtown store windows. But only one . . . well, maybe there were two or three after awhile. But no worries. It happens, you know, very sad to see them go, but after all, their prices were always a bit high, so it’s no wonder they went under. The independent bookstore, a fixture for 30 years—the store that people had deeply woven into their life stories—gone. The owners–your neighbors, your friends– moved away, disheartened and disillusioned. The hardware store, that ancient edifice, the old paradigm of personal, knowledgeable customer service—gone. Same with the sporting goods store. One by one, the downtown core, the heart and soul of the business community, dying away. And gradually, as stories of fear and financial failure from friends and acquaintances spread through the town, people finally began to wonder. How did this happen? Why are there no jobs anymore with decent wages? Why are the lines at the unemployment office growing even longer? Why have I lost touch with so many people I used to see downtown every week and share the local news with? Why do I have to drive all the way to the edge of town on a busy stop & go street just to buy something I need?

    Too late. This town, this community of decent, hard-working people, was addicted, and they didn’t even know it. Having sold their souls to Wal-Mart’s company store for a cheap consumer high, their fate was sealed. They never realized they were degrading themselves, their friends, their families, and their community—just by going shopping.

    The mega-store, the so-called Big Box store (Wal-Mart being the biggest of them all) comes to town with a Big Plan. The plan usually works because “consumers” (known locally as “people”) are so predictable. They want to buy things cheaper. What could possibly be wrong with guaranteed lower prices? Let’s shop!

    The Shadow of Low, Low Prices
    Almost every dollar spent super-shopping immediately leaves town for corporate headquarters out-of-state, never to re-circulate again in the local economy. Life blood lost.


    Wal-Mart is so powerful, it usually gets its way through sheer economic force. It can under-price local businesses because it coerces suppliers to cut their costs in order to get the contract with them. As a result, manufacturing jobs fly to places like China, where girls and young women in sweatshops slave under horrific conditions for next to nothing, so Americans can buy cheap clothing & widgets 10,000 miles away. What a deal! The local hardware store, bookstore, sporting goods store, bakery, electronics store, music shop, toy store, food market—all closed through lack of local support because Americans chase those guaranteed lower prices. The local factory—you know, the one that used to manufacture widgets, that used to employ 100 local people at family wages with benefits; the one that was part of the town’s identity? Closed. More life blood lost. Money is the blood of a local economy, and this community is bleeding to death.

    And guess what? Your job at the local supermarket is about to be sucked dry, too. You see, Wal-Mart doesn’t pay its employees what you get paid, nor does it give the benefits you receive. So, to remain competitive, your employer has just lowered your pay and cut your benefits! Don’t like it? Not gonna stand for it! Fine, they say. Go try to find anything better in this dying town.

    The cycle affects everyone in the community. Everyone is sucked into the downward spiral. And that sound you hear? Yes, indeed, it’s a sucking sound. Wal-Mart is a parasite on the town body. Like a giant tick, it attaches itself to the side of a community, digs in and begins to suck the money out. It entices local folks with goodies at prices unheard of. Like innocents entering an opium den, people succumb to the illusion of prosperity, not realizing the enormous price to be paid soon after. Everything sinks to the lowest denominator (or is that dominator)—wages, prices, products, and services. Until most people have to shop there, because either they can’t afford to do otherwise, or there’s no other widget stores left.

    Maybe that $14.95 widget wasn’t so cheap, after all.

    Every purchase is political.
    Every purchase affects the environment.
    Every purchase is your conscience.
    Every purchase is a vote.
    Every purchase is a prayer.
    Every purchase matters.

    Buy local. Buy little. Buy organic. Live in the world you want to create. Create the world you want to live in.

    http://www.alternativesmagazine.com/index.html

  2. #2
    Member Awar's Avatar
    Join Date
    Sep 2003
    Last Online
    Friday, October 21st, 2005 @ 11:04 PM
    Subrace
    Corded/Balkanoid UP
    Country
    Confederate States Confederate States
    Location
    Olympus
    Gender
    Age
    40
    Politics
    Nutzi
    Religion
    Agnostic!!!
    Posts
    4,947
    Thanks Thanks Given 
    0
    Thanks Thanks Received 
    6
    Thanked in
    6 Posts

    Post Re: Walmart as a case-study in globalization

    It's incredible how this all works!
    These mega-chains really are above the law, since they are large enough to go through the beginning losses, just so they can outrun any competition, soon when they're the only one, the entire economy of a community is put into the orbit of this black hole. There's no chance of making any laws that would constrain the 'big one', since it has enough power and political 'gravity' to prevent any law from hurting it's interests.

    Within a decade, most of the western world will be both selling and spending in such mega-multistores, while the eastern world will be producing the goods for them at molecule-thin wages. Total control.

  3. The Following User Says Thank You to Awar For This Useful Post:


  4. #3
    Member Triglav's Avatar
    Join Date
    Apr 2003
    Last Online
    Tuesday, April 25th, 2006 @ 12:24 PM
    Subrace
    Arya/Paleoeuropeidal (norda) :D
    Country
    European Union European Union
    Location
    European Union
    Gender
    Politics
    Fairness
    Posts
    2,407
    Thanks Thanks Given 
    0
    Thanks Thanks Received 
    2
    Thanked in
    2 Posts

    Post AW: Re: Walmart as a case-study in globalization

    Quote Originally Posted by AWAR
    It's incredible how this all works!
    These mega-chains really are above the law, since they are large enough to go through the beginning losses, just so they can outrun any competition, soon when they're the only one, the entire economy of a community is put into the orbit of this black hole. There's no chance of making any laws that would constrain the 'big one', since it has enough power and political 'gravity' to prevent any law from hurting it's interests.
    Well, this is a fine descriprion of how global Capitalist economy functions in general.
    "slavic" languages are absolutely arteficial (Read "slawenlegende"). The "glagolica", invented by a bunch of monks, is nothing but an ancient esperanto, creating new words, definitions and alphabet out of regional slangs.

    The craddle of European Civilization comes from the North. All blond people originate from the north. So if you see a blond-blue eyed Slovene, Russian, Czech, Polak ect., you can be 100% sure that his ancient ancestors originated from "Germanics" (Germanic = Nordic).
    "slovenja" was the settelment of the Langobards = Germanics/Teutons. "Poland" of the Goths and East-Vandals ect. ect. What do "slavs" tell us about their origin?
    Some silly story that they originate from some swamps in the east and popped out of no where into history.

    So you see my dear "Gorostan" [=Triglav], you are in reality a "Germanic" indoctrinated with panslav propaganda and historic fantasy stories. ~Dr. Brandt, former TNP and Skadi member

  5. #4
    Member Awar's Avatar
    Join Date
    Sep 2003
    Last Online
    Friday, October 21st, 2005 @ 11:04 PM
    Subrace
    Corded/Balkanoid UP
    Country
    Confederate States Confederate States
    Location
    Olympus
    Gender
    Age
    40
    Politics
    Nutzi
    Religion
    Agnostic!!!
    Posts
    4,947
    Thanks Thanks Given 
    0
    Thanks Thanks Received 
    6
    Thanked in
    6 Posts

    Post Re: AW: Re: AW: Re: Walmart as a case-study in globalization

    Well, Mercator does similar things in Belgrade, although it's much too large a city for making such a devastating effect on the economy, and the paychecks in other firms are already at a total minimum

    The Austrian ( AFAIK ) METRO does that in Bulgaria.

  6. #5
    Senior Member Phlegethon's Avatar
    Join Date
    Jun 2003
    Last Online
    Monday, April 4th, 2016 @ 11:13 PM
    Gender
    Age
    47
    Posts
    2,868
    Thanks Thanks Given 
    0
    Thanks Thanks Received 
    5
    Thanked in
    5 Posts

    Post Re: AW: Re: AW: Re: Walmart as a case-study in globalization

    METRO is German - and as a whole is not really a discounter brand like Wal-Mart. It was founded by a Waffen-SS veteran (Otto Beisheim, sergeant in the Leibstandarte Adolf Hitler), by the way. Fortunately Wal-Mart in Germany is well behind its expectations, making losses, losing court battles and severely handicapped through the fight with the ver.di union - one of the biggest in the world. Apart from that this brand is so deeply American that is arouses severe resentment in most Germans. I don't know anyone who has ever bought anything there.
    Last edited by Phlegethon; Sunday, June 6th, 2004 at 05:54 AM.
    And all my youth passed by sad-hearted,
    the joy of Spring was never mine;
    Autumn blows through me dread of parting,
    and my heart dreams and longs to die.

    - Nikolaus Lenau (1802-1850)

    Real misanthropes are not found in solitude, but in the world; since it is experience of life, and not philosophy, which produces real hatred of mankind.

    - Giacomo Leopardi (1798-1837)

  7. #6
    Member Awar's Avatar
    Join Date
    Sep 2003
    Last Online
    Friday, October 21st, 2005 @ 11:04 PM
    Subrace
    Corded/Balkanoid UP
    Country
    Confederate States Confederate States
    Location
    Olympus
    Gender
    Age
    40
    Politics
    Nutzi
    Religion
    Agnostic!!!
    Posts
    4,947
    Thanks Thanks Given 
    0
    Thanks Thanks Received 
    6
    Thanked in
    6 Posts

    Post Re: AW: Re: AW: Re: Walmart as a case-study in globalization

    I'm glad to hear that about Walmart in Germany
    I only know about METRO in Bulgaria from what I read in the newspapers. Thousands of Serbs also go to METRO to buy things ( even with the trip and border crossing, and the +20% tax, METRO is significantly cheaper than anything here ).

    Anyway, from what I read, METRO caused a lot of stores in Bulgaria to close, and has done a similar thing like Walmart with the jobs. I suppose it's because of the lack of laws in the Balkans.

  8. #7
    Member Triglav's Avatar
    Join Date
    Apr 2003
    Last Online
    Tuesday, April 25th, 2006 @ 12:24 PM
    Subrace
    Arya/Paleoeuropeidal (norda) :D
    Country
    European Union European Union
    Location
    European Union
    Gender
    Politics
    Fairness
    Posts
    2,407
    Thanks Thanks Given 
    0
    Thanks Thanks Received 
    2
    Thanked in
    2 Posts

    Post AW: Re: AW: Re: AW: Re: Walmart as a case-study in globalization

    Quote Originally Posted by AWAR
    I'm glad to hear that about Walmart in Germany


    Anyway, from what I read, METRO caused a lot of stores in Bulgaria to close, and has done a similar thing like Walmart with the jobs. I suppose it's because of the lack of laws in the Balkans.
    How about Mercator in Serbia?
    "slavic" languages are absolutely arteficial (Read "slawenlegende"). The "glagolica", invented by a bunch of monks, is nothing but an ancient esperanto, creating new words, definitions and alphabet out of regional slangs.

    The craddle of European Civilization comes from the North. All blond people originate from the north. So if you see a blond-blue eyed Slovene, Russian, Czech, Polak ect., you can be 100% sure that his ancient ancestors originated from "Germanics" (Germanic = Nordic).
    "slovenja" was the settelment of the Langobards = Germanics/Teutons. "Poland" of the Goths and East-Vandals ect. ect. What do "slavs" tell us about their origin?
    Some silly story that they originate from some swamps in the east and popped out of no where into history.

    So you see my dear "Gorostan" [=Triglav], you are in reality a "Germanic" indoctrinated with panslav propaganda and historic fantasy stories. ~Dr. Brandt, former TNP and Skadi member

  9. #8
    Funding Member
    "Friend of Germanics"
    Skadi Funding Member

    Nordhammer's Avatar
    Join Date
    Dec 2002
    Last Online
    Monday, February 6th, 2006 @ 07:08 PM
    Subrace
    Nordid
    Gender
    Politics
    Nordicist
    Posts
    3,153
    Thanks Thanks Given 
    0
    Thanks Thanks Received 
    6
    Thanked in
    6 Posts

    Post Re: Walmart as a case-study in globalization

    Maybe they should change their name to China-mart.

    China is used to undercut everyone, even other Asian countries. Kimchi is a Korean speciality, but China is making it at half the price, so many Korean stores now carry the Chinese brand because it's so much cheaper.

  10. #9
    Senior Member
    Join Date
    Mar 2004
    Last Online
    Tuesday, July 26th, 2005 @ 03:22 AM
    Gender
    Posts
    766
    Thanks Thanks Given 
    0
    Thanks Thanks Received 
    4
    Thanked in
    4 Posts

    Post Re: Walmart as a case-study in globalization

    The article is also a useful illustration of the flaws inherent in the classical liberal justification for free trade, as it is applied in the modern globalist context. The most basic liberal argument basically says that the net welfare of society is increased when trade is completely unrestricted, so that each trading partner focuses on the industries in which it has a comparative advantage, with the resulting specialization producing efficiencies that lead to the 'gains from trade'. (The basic Ricardian argument for free trade.)

    Modern trade theory is more sophisticated than this, but it still focuses on aggreggate welfare effects as a justification for free trade. But obviously, this raises the question 'what about the distribution of those gains'? Walmart and its shareholders obviously gain. And the individuals in the local community do gain (in a strictly economic sense) through lower prices - if they can keep their jobs once Walmart has arrived. But with so many jobs in small to mid-sized towns in the retail sector, not many keep their jobs, and those that do get jobs with Walmart have to make due with minimum wage, the absence of any union collective-agreement, and long hours.

    How precisely the local community is supposed to continue buying Walmart's goods once so many people are unemployed is unclear. It would be interesting to see data on the average pattern of sales for Walmart stores in a small to mid-sized town over, say, one, five, and ten plus years. I'll bet there is an initial peak, followed by a slow, steady decline as Walmart sucks the local economy dry, and people can no longer afford to buy so many of its goods, even at low prices. If true, this would play a major role in Walmart's relentless determination to continuously open new stores in new communities both inside and outside of North America. Once the parasite's host is dead, it needs to find a new host if it is to survive itself.

    And of course, it also illustrates the problems inherent in modern competetion policy, which is rooted in the assumption that competition law protects 'competition, not competitors'. According to this assumption, the sole valid measure of whether a monopolist causes economic harm (by reducing competition) is if he uses his price-making market power to set the prices of his goods above the market-clearing price, thereby reducing net welfare by imposing a deadweight economic loss on net welfare while reaping economic rents for himself.

    On this model, it follows that a monopolist who consistently keeps prices low is most likely not causing economic harm, and therefore should not be sanctioned by the competition authorities. This allows a firm like Walmart, which becomes a retail (near-)monopolist in every small-to-mid sized town where it has a store, to exercise its monopoly with impunity, while most or all of its smaller, local or regional rivals are driven out of business - and again, most of the 'gains' from this development are distributed in favour of Walmart and its shareholders, and against the local community. And of course, as pointed out by AWAR and Triglav, it's no coincidence that the laws are written in this way - the rampant corruption inherent in the policy-making process makes this inevitable.
    Last edited by Telperion; Monday, June 7th, 2004 at 06:31 AM.

  11. #10
    Senior Member Berchta's Avatar
    Join Date
    Jun 2004
    Last Online
    Wednesday, June 9th, 2004 @ 08:06 PM
    Subrace
    ...
    Location
    Svartalfheim
    Gender
    Politics
    not-sure-ism
    Religion
    undecided
    Posts
    23
    Thanks Thanks Given 
    0
    Thanks Thanks Received 
    1
    Thanked in
    1 Post

    Post Re: AW: Re: AW: Re: Walmart as a case-study in globalization

    Quote Originally Posted by Phlegethon
    METRO is German - and as a whole is not really a discounter brand like Wal-Mart. It was founded by a Waffen-SS veteran (Otto Beisheim, sergeant in the Leibstandarte Adolf Hitler), by the way. Fortunately Wal-Mart in Germany is well behind its expectations, making losses, losing court battles and severely handicapped through the fight with the ver.di union - one of the biggest in the world. Apart from that this brand is so deeply American that is arouses severe resentment in most Germans. I don't know anyone who has ever bought anything there.
    they don't like having to pronounce the name, it makes them sound like they're regurgitating food for their yung'uns.

    i went there, once, hoping i might find a hershey bar. i got dizzy so i decided to give up the search.

    thing is, they're always going on about how cheap they are? bull. it works out cheaper if you buy local and go to aldi. but the sad thing is, people believe it. i know alot of germans who shop there.
    i think it's crazy that the nearest wal-mart is over 30 km away from where i live (for german standards that is FAR ) yet i still get junk mail from them! wtf is all that about???

Page 1 of 3 123 LastLast

Similar Threads

  1. Globalism Destroying Our Nations: A Case Study
    By Huginn ok Muninn in forum Articles & Current Affairs
    Replies: 0
    Last Post: Sunday, September 4th, 2016, 08:44 PM
  2. Replies: 17
    Last Post: Sunday, June 5th, 2011, 07:17 PM
  3. [pdf] The Case for Germany [A study of modern Germany] (1939)
    By Blutwölfin in forum Literature & Book Reviews
    Replies: 0
    Last Post: Saturday, December 16th, 2006, 12:06 PM
  4. The German Justice System: A Case Study by Claus Jordan
    By Pera_Z in forum Law, Ethics, & Morals
    Replies: 0
    Last Post: Saturday, August 24th, 2002, 11:50 AM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •