I read (scratch that - "listened to...") Sam Walton's book, "Made in America" (http://bit.ly/6pDx4b) quite a few years ago, when travelling frequently. His ideas were not new, he was just a very astute business man. Instead of pricing for what people will pay, he always priced for the lowest price he could sell it for -- no "loss leaders" no gimmicks, just low prices. Several other "big box" stores offered discount items. Less quality in the name of low price - K-Mart, for example. For eons, grocery stores have offered "store brands" for a cheaper alternative. For those of us that have tried "store brand" soda, when we really wanted a "Coke" know that they are not the same, they are just cheaper. While K-Mart generally concentrated on big markets, Walmart moved into smaller towns. I was living in Moscow Idaho (population ~ 20k + 8k university students) when they opened, and I saw a few of the business that went under because of Walmart. There was the typical outrage-mostly from the same people that are outraged by all big business. I actually knew someone who worked at one of the stores, and later went to work for Walmart. Actually she still works for Walmart - some 15yrs later.
When she worked for the "mom & pop" store, she made minimum wage. Even less than that, actually, as she was subject to a state minimum wage that was less than the federal minimum wage because the business employed fewer than 10 people (or close - I can't remember). She didn't have health coverage, or retirement. The "mom & pop" had its good aspects -- poor pay or not, they were a close knit family -- they had Christmas parties at the owner's house, and knew the families of all employees. Straight out of "A Wonderful Life" less the afore mentioned really bad wages, and lack of health care or retirement packages. The sad part was that the "Mom & Pops" didn't pay better, offer healthcare or retirement not because they were hoarding money for themselves, but because they couldn't afford to. They had no secret formula to riches that Walmart took from them, they had a small store, made enough money to get by, and it required a few minimum wage employees so they didn't have to work every waking hour at the store - that's it.
Walmart had the advantage of economies of scale. Purchasing power, group rate healthcare plans allowed them to sell the same things much cheaper, and offer better benefits. They could stream line their delivery to minimize shipping charges, negotiate contracts that allowed them to return any unsold items (if they got bad products). They could also sell lesser quality items, similar to the items that the "mom & pop" were selling much cheaper (this is where the China items came to play). All in all, Walmart actually had a plan, and stuck to it. The only plan most "mom & pops" have is to open a store & sell things. Walmart not only wanted to sell things, their plan involved what to sell, how to sell, how to get what to sell, how to get what not in the who now -- understand?
There is no denying the purchasing power that was given to the nation's "poor" by Walmart. The question is "Does it really hurt the local economy to buy from China (as opposed to American vendors)?"
How could it hurt the local economy? Those mom & pop shops were not buying anything from the local economies - they were buying from distributors who were buying from wherever the products were produced. Look on the back of the tongue of your Nikes, or the tags on your shirts/pants and see if they say "Made in America." More likely "Hencho in Mexico," China, Tawain, or Vietnam The employees now have health care, and retirement (available - most minimum wage employees do not take advantage of what is offered). The huge monstrosities are now a great source of property tax revenue for the local economies without the local face (that local assessors felt guilty about sticking it to). The increased sales offer more sales tax revenue. Not to mention the local services that they require (landscaping, snow removal, utilities, etc).
Fundamentally, if you want to support "Buy American", you can find them at Walmart. You just won't buy them if you buy the cheapest things on the shelf. I'm just waiting for Walmart to start offering health care (insert Dr. Nick reference from the Simpsons)...I'm sure I want the best doctor, when I have a major illness, but when I need my prescription renewed for allergies, or an anti inflammatory for an injured knee (other than ibuprofen) -- I'm sick of paying for a $180 office visit, when Dr. Nick would suffice.
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