Wal-Mart

[Dan M]

> -----Original Message-----
> From: brin-l-bounces at mccmedia.com [mailto:brin-l-bounces at mccmedia.com] On
> Behalf Of Nick Arnett
> Sent: Wednesday, February 13, 2008 11:28 PM
> To: Killer Bs (David Brin et al) Discussion
> Subject: Wal-Mart
> 
> We talked a while ago about Wal-Mart's virtues and lack thereof.  I
> recently
> became acquainted with the father of one of the LA Times reports who wrote
> a
> four-part series about Wal-Mart a few years ago, which won a Pulitzer
> Prize.
> 
> Part one is here:
> http://www.latimes.com/news/custom/showcase/la-fi-
> walmart23nov23,1,1712351.story?ctrack=3&cset=true
> 
> I was surprised when my new friend told me that apparently Wal-Mart liked
> the series.  This, despite that fact that I think the stories essentially
> say that if all you care about is low prices, then Wal-mart is great.  If
> they liked the story, they apparently truly believe that nothing is more
> important than having the lowest prices.  To me, that's just plain greed,
> amoral greed.  

I'm confused here.  Wouldn't they make more money if their prices were
higher?  They would pay the same amount of money to their employees and
suppliers and have higher profits.  The person buying at Walmart is the
person directly buying making money.  Casual observance, as well as economic
studies indicate that the average Wal-Mart shopper is not as up-scale as,
the average major department store shopper.  Every dollar matters to them.


Some things really are more important than driving prices
> as low as possible.  Otherwise, we'd still have legalized slavery in the
> modern world, to offer the extreme example.

Slavery offers no choices to the people involved.  If there are sweatshops
in China that force people to work in them, then I'd support actions,
including trade sanctions against China until that practice is stopped.
But, a job that offers an improvement in one's present standard of living is
a different thing.

> It seems to me that when an organization becomes that big, it becomes easy
> for top management to abuse people at the far end of the supply chain.

So, you're argument is that small boutique stores treat their employees
well?  Some may, but I know plenty of folks who work for local owned stores
that pay just barely above minimum wage.  Indeed, the prevailing rule from
my parents generation is get a job at a big company, if at all possible,
because they will not exploit you off the job as well as on.

> if
> only because they are so easy to ignore.  Perhaps our systems need to take
> into account the fact that the personal experience of people isn't
> transmitted nearly as easily as their economic value.

I've been fortunate to have two daughters from Zambia and we've had a great
deal of transfer from personal experience. Also, we have Rita on this list.
The "exploited" folks elsewhere in other countries see the job at a call
center or doing engineering at only 10k/year as a real step up for
themselves and their families.

> And no to those who may demand I come up with a better system before
> criticizing this one, I don't have something better to offer, other than
> encouraging more of this kind of reporting, which helps show the real cost
> of those low, low prices.

But, that doesn't show the real cost.  Brad Delong did a beautiful piece on
this a few years ago on his website. It involves buying a mat made by a
Third World worker 

I cannot find the original in 15 minutes (and I do have to get back to wkr
or I'll work tonight instead of taking my wife to dinner and all hell will
break lose) but there is a great discussion on the problem (including Brad)
at


http://www.j-bradford-delong.net/movable_type/2004-2_archives/000262.html
 
My daughter Neli just graduated from American University with a masters in
Econ.  She's been working with NGOs of various types (can't get a work visa
for a real job here) to pay her way through and is now breathing easy
because she doesn't have to work 50 hour weeks on top of taking more than a
full load of classes.  She is looking for a fellowship (hopefully at the
world bank) for a couple of years to get the experience she needs to get a
Phd and work for an international agency like the IMF to try to turn around
the economy of her country.

Ever since she got here she's been focused on obtaining the skills to help
her country.  Two years ago, when a hiccup in the US law meant she didn't
get paid for a summer's work, not only did she finally let us help her, she
lost 15 lbs to just above anorexic weight because she couldn't afford food.
(she was too proud to ask for more money) We gave her gift cards at the
local grocery store for Christmas to make sure she'd eat.

She happily and proudly shops at Wal-Mart, known that she is helping the
fellow their worlders by buying merchandise they make.  See, Zambia is very
very poor; it isn't exploited by the US buying public.  It's only
international trade is copper, which is mismanaged by corrupt government
officials.  The local workers get nothing from jobs making things for
Wal-Mart.  She'd be thrilled beyond belief for the people of her country if
a shoe factory were open there.  The families lucky enough to have an
"exploited" worker as a family member would be among the best off in the
neighborhood.

Dan M.