Walmart: The High Cost Of Low Prices

[Mitchell Holman]

How 'Everyday Low Prices' Are Costing Americans Their Jobs
Daily Finance
Aug 11, 2012


As consumers, we welcome Walmart's (WMT) low prices.

But here's the thing about these low prices -- they're
doing the U.S. more harm than good.

A new research report has found that low prices have
actually caused unemployment to rise, and dealt a massive
blow to the manufacturing sector.

Look no further than the 7 million manufacturing jobs the
U.S. lost from 1980 to 2011, according to a recent research
report from Demos. The report acknowledges this happened
because of "a variety of complex factors." But Walmart had
a bigger hand in this than most of us realize.

The problem starts with Walmart's selling point: low prices.

These low prices are possible both because Walmart pays its
employees low wages and because the bulk of Walmart's products
are sourced from foreign factories, where raw materials and
labor are cheaper.

What's more, Walmart can -- and does -- use its massive size
to bully American companies whose products it sells to do the
same. In fact, Levi's jeans and Master Lock "were pressured
to shut their U.S. factories and moved manufacturing abroad
to meet Walmart's demand for low prices," Demos said.

What's more, many well-known companies rely on Walmart for
more than 20% of their revenue, according to Business
Insider's calculations, including: Helen of Troy (which
manufacturers kitchen tools under the OXO name) Jarden
(behind the Mr. Coffee brand). Hanesbrands (the undergarment
company known for Hanes and Wonderbra).

And they're not alone. Because these businesses are so heavily
dependent on Walmart, they have no choice but to acquiesce to
whatever Walmart asks of them.

So -- like Levi's and Master Lock -- if Walmart tells these
companies their products must become even cheaper, they have
to cut costs. Doing that requires finding cheaper raw materials
(sourcing internationally) or cheaper labor (again, from
overseas).

This cost cutting has tangential side effects that cost more
jobs than just those folks working at factories.

Four of Walmart's top 10 suppliers in 1994 had filed for
bankruptcy protection by 2006, according to Harper's Magazine,
meaning disappearing factory jobs as well as the white-collar
jobs at their headquarters.

Then consider Walmart's competitors, Target, Kmart, Dollar Tree,
etc. To remain competitive with Walmart, they have to do exactly
what Walmart does: look for cheap foreign product sources, or
squeeze low prices out of their suppliers.

All of which continues to trickle down the economy, sending an
increasing number of jobs abroad and allowing Walmart (now the
nation's largest employer) to keep their employees' wages low.

So remember this next time you rejoice in finding a low-priced
item at your local Walmart: Those "everyday low prices" may have
cost you or someone you know their job.


http://www.dailyfinance.com/2012/08/10/how-everyday-low-prices-are-
costing-americans-their-jobs/?icid=maing-grid7%7Cmain5%7Cdl9%7Csec1_lnk3%
26pLid%3D191286

[Billary]

<BIG YAWN>

yes WALMART employs TENS OF THOUSANDS of AMERICANS in professional
jobs with great benefits. Jobs like information technology, real
estate management, human resources, construction, finance and
accounting, shipping and trucking, retail management, product
management, advertising and product marketing, commercial design oh
and by the way...even retail associate.

You lose again Hollowman aka Zipp sockpuppet # 21

[Mitchell Holman]

Billary <billarycl...@gmail.com> wrote in news:d4fb0943-6b28-4b7b-
a005-02e...@4g2000yqc.googlegroups.com:

Wrong.



Walmart Cuts Employee Health Care Benefits
Oct 11 2011

Walmart is increasing employee health insurance premiums
and no longer offering the coverage for new part-timers
because of rising costs. Walmart informed employees last
week that it is eliminating healthcare for future part-
time employees who work less than 24 hours a week, the
New York Times reported.

http://abcnews.go.com/blogs/business/2011/10/walmart-cuts-employee-health-
care-benefits/

[NoBody]

You can blame Obama driving up the cost of healthcare for that one,
not Walmart.

[Mitchell Holman]

NoBody <NoB...@nowhere.com> wrote in
news:vdih28l3fhh7curbf...@4ax.com:

Proof?

[NoBody]

On Mon, 13 Aug 2012 07:40:16 -0500, Mitchell Holman

It's ironic that you ask for proof given that you've fled from some
recent threads...


money.cnn.com/2012/03/29/pf/healthcare-costs/index.htm
http://www.washingtonpost.com/business/economy/supreme-court-ruling-could-boost-the-cost-of-health-care-reform-ex-cbo-chief-says/2012/06/29/gJQAMXlbBW_story.html
http://www.usnews.com/opinion/articles/2012/06/29/time-to-focus-on-healthcare-costs
http://www.reuters.com/article/2012/05/31/us-usa-healthcare-costs-idUSBRE84U05620120531

[Mitchell Holman]

NoBody <NoB...@nowhere.com> wrote in
news:pb7k281s7ihafafhr...@4ax.com:

Just post your proof.

[Mitchell Holman]

Yoor...@Jurgis.net wrote in news:s5rk281hlcf0ag1ok4stgcq013pplbnvm7@
4ax.com:

> Poor NoWussy is too chickenshit to acknowledge the fact that his GOP
> has contributed over 80% of the national debt and most of the
> deficit--then handed the mess to Obama.
>
> He's too ashamed.


You cannot even post the time of day here
without "Nobody" demanding proof, but anytime
HE posts a claim he runs away when asked to
back it up.

[NoBody]

On Tue, 14 Aug 2012 08:17:59 -0500, Mitchell Holman

My, you've become so dishonest. You snipped it and then demanded it.
Here it is again:

[NoBody]

On Tue, 14 Aug 2012 09:22:51 -0600, Yoor...@Jurgis.net wrote:

>Poor NoWussy is too chickenshit to acknowledge the fact that his GOP
>has contributed over 80% of the national debt and most of the
>deficit--then handed the mess to Obama.

You're apparently too stupid to understand my answer.

[NoBody]

On Tue, 14 Aug 2012 17:44:47 -0500, Mitchell Holman

<nomailcomcast.net> wrote:

>Yoor...@Jurgis.net wrote in news:s5rk281hlcf0ag1ok4stgcq013pplbnvm7@
>4ax.com:
>
>> On Tue, 14 Aug 2012 08:17:59 -0500, Mitchell Holman
>> <nomailcomcast.net> wrote:
>>
>>>>
>>>> It's ironic that you ask for proof given that you've fled from some
>>>> recent threads...
>>>
>>>
>>> Just post your proof.
>>
>> Poor NoWussy is too chickenshit to acknowledge the fact that his GOP
>> has contributed over 80% of the national debt and most of the
>> deficit--then handed the mess to Obama.
>>
>> He's too ashamed.
>
>
> You cannot even post the time of day here
>without "Nobody" demanding proof, but anytime
>HE posts a claim he runs away when asked to
>back it up.
>
>

BWWAAA! I posted the proof immediately, you snipped it, then demanded
it again. In other words, you're just another dishonest lib -- a pity
actually since you used to be just wrong.

[NoBody]

Oh Mitchie? Mitchie? Mitchie? Where did you do?

[NoBody]

Oh Mitchie? Mitchie? Mitchie? Where did you go?

[Liberal Here]

Curious that after reading the above link, it turns out to have been a reichtard legal challenge to Obamacare, not Obamacare itself, that may increase costs.

You seem to have a problem with "cause and effect" analysis.

>
> http://www.usnews.com/opinion/articles/2012/06/29/time-to-focus-on-healthcare-costs
>
> http://www.reuters.com/article/2012/05/31/us-usa-healthcare-costs-idUSBRE84U05620120531