nickcoons
Member
- Joined
- Oct 25, 2007
- Messages
- 828
When Wal-Mart comes to town it wipes out the middle class locksmith, hardware stores, general stores, and eventually small food stores if they get a "Supercenter". That's part of the free-market and it wipes out small towns.
Your logical progression of arguments (WalMart comes to town and small businesses close up) is sound, but your premise (that's part of the free market) is not correct. Huge conglomerates like WalMart don't come from the free market, they come from government favors.
When WalMart proposes to open in a new outlet, local governments often give them subsidies (measuring from hundreds of thousands to millions) to offset the cost of building their warehouse stores. Their small business competitors don't have access to these same favors. My argument is not that small businesses should get these favors also, but rather that no one (including WalMart) should get them. If WalMart had to build its way to the top by its own productive labor only and not on the backs of the townspeople (including those that don't shop there), then it likely wouldn't have gotten to be the monster that is has. And if it did thrive under such conditions, then its existence as a large successful company would be well-deserved.
No, in a free market you do not have corporatism. You have corporatism when government favors big business, giving them an unfair advantage.