Wal-Mart

[Dave Land]

On Feb 14, 2008, at 1:50 PM, Dan M wrote:

>> -----Original Message-----
>> From: brin-l-bounces at mccmedia.com [mailto:brin-l- 
>> bounces at mccmedia.com] On
>> Behalf Of Nick Arnett
>> Sent: Thursday, February 14, 2008 9:59 AM
>> To: Killer Bs (David Brin et al) Discussion
>> Subject: Re: Wal-Mart
>>
>> On Thu, Feb 14, 2008 at 7:34 AM, Dan M <dsummersminet at comcast.net>  
>> wrote:
>>
>>>> -----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?
>>
>> Um... basic economics.  They attract customers with low prices.   
>> If they prices aren't low, customers go other places.  They make  
>> less money. Surely you realize that there can be profit in low  
>> prices.
>
> OK, so Wal-Mart is greedy if it tries to take market share, from  
> say Federated Department Stores,  by lowering its profit margin in  
> order to  make more sales.  I have no argument with the idea that  
> there is a downward force on prices in a competitive sales  
> environment, but I think you are the first person that I recall  
> calling responding to this pressure greedy.  Am I being greedy when  
> I find a way to be more efficient than a large corporation and make  
> money by undercutting their prices while still making a living wage?

If Wal-Mart had simply found a more efficient means of selling shiny  
noisy crap than everyone else, and Wal-Mart's suppliers and employees  
were making a living wage, then we wouldn't be having this  
discussion. Mind you, I have NO doubt that they have found more  
efficient means of selling shiny noisy crap: It's the _other_ things  
they've done to drive down prices that are a problem, such as  
befouling the environment, trapping employees in stores, stealing  
from employees and so forth -- the usual litany of grievances against  
the Bentonville Behemoth.

If that is the price of low-cost shiny noisy crap, I'll gladly buy  
overpriced shiny noisy crap, and put more money in circulation by so  
doing.

Efficiency is good. Cheating is bad. It's about as simple as that.

Dave