Thursday, February 16, 2006

Wal-mart: How (s)low can we go?

Looks like the long-time rumors might be true -- wal-mart seems intent on building a super wal-mart across the street from its current store in Monroe. And maybe they'll convert the store they're in now to a Sam's Club. This is probably good news for people who will drive an extra two miles to save $2 on garbage bags, but it won't be good for all the merchants with a global conscience that draw the line at squeezing every last penny out of their supplier chain. Wal-mart is ruthlessly competitive and small towns suffer in many ways whenever they breeze in. But who can blame them? So what if their prodigeous imports of third world products increase our trade deficit? Who cares if their lower level employees have to use taxpayer supported Medicaid for their health insurance? Why shouldn't they hire illegal aliens for their cleaning staff? The whole idea here is returns to shareholders.
Unfortunately, it's a little short sighted. Eventually, Wal-mart's prices won't be low enough for even middle class families to afford because the standard of living probably will slip well below that of China or India, which will enrich themselves by feeding Wal-Mart's insatiable appetite for cheap, foreign made goods.
Meantime we can buy garbage bags dirt cheap and count our pennies while we pass the time in the incredible traffic snarls between the super Wal Mart and Sam's club. Hopefully, they'll have a gas station out in front of the new place.

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