Wal-Mart undercutting practises

[Travlyr]

When a company gets subsidies by the State and takes away from average Mom & Pop businesses, that is fair?

When a company strong arms purveyors to make their things at the price Walmart dictates, that is fair?

When Walmart props up factories in China where the people get paid $3.00 a day to make products to sell to the U.S. at a rate hike of 200%, that is fair?

I live in a small town who continuously fights to not let Walmart in or around our town. I am thankful a lot of people have insight and enough wisdom to be stubborn enough to not fall for their deception-- that it will bring jobs to our area and all the other lies they say. We have a lot to protect around here, we keep local businesses in business by keeping Walmart out of our town!

Not to mention Walmart was the main reason we have RFID (Radio Frequency Identification) in products--do some research on that. They worked hand-and-hand with the DoD to have all products with tracking devices on them!

We are not dealing with a truly free market--we have crony capitalism and Walmart capitalizes on it.

You need to watch the documentary I posted...then come back in to the discussion.

+rep

A lot of people who claim to be from the Austrian school advocate for government subsistence in business. Jeffrey Tucker wrote an article about how well McDonalds was doing and that the measly $Millions in subsidies they got from TARP was offset by the taxes and regulations. I'm with you. If Walmart did not get subsides and protections from governments, they would have to compete.

 

[Wesker1982]

So today I was discussing free market competition and while I was discussing Standard Oil

The mainstream version of the Standard Oil story is a myth.

Most monopolies are not created by selfish others, but by our own aggression.

In an economy free of governmental regulation, wouldn't a firm or group of firms obtain a monopoly over some vital resource or product? And won't the monopoly then exercise its power by raising prices?

The Myth of Natural Monopoly

Is statism needed to protect against corporate monopolies?

Big Business will dominate the free market?

Tom Woods on Monopolies

Fear of Monopoly





And also page 39 The Standard Oil Case

and Witch-hunting For Robber Barons: The Standard Oil Story

Just FYI

 

[Johnny Appleseed]

The mass number of people have determined that cheaper is better, that quantity is better than quality because it affords them the fix of buying stuff and thus a sense of control.

You see when man moves from having to hunt for his food/clothing in the wild to having his mate buy it in the market a compensation has to be made.

 

[erowe1]

So today I was discussing free market competition and while I was discussing Standard Oil, my friend brought up Wal-Mart even though he knew it was not a monopoly. He brought up the practice where Wal-Mart, due to it's large net profit, is able to maintain a barrier for new competition because they are able to undercut their prices to actually cost them more than they profit and outlast competition only to raise the price again.

I asked if he could provide evidence for that but he was unable to give an example, but it was important because I still considered the reasoning behind it. I also brought up that Wal-Mart is still forced under market forces to maintain low prices but I felt unsatisfied with this answer.

I know government intervention does not increase competition, but what are your thoughts about such practices and it's relation to the free market in providing competition?

Let's say your friend is right and Walmart does that.

Don't they have the right to do that?

 

[xFiFtyOnE]

My family no longer shops at Wal-Mart. Several reasons for this, quality of food/products, the wages they pay employees, and it's always much quicker to get in and out of a local grocery store. This is just something else to add to the list.

 

[erowe1]

My family no longer shops at Wal-Mart. Several reasons for this, quality of food/products, the wages they pay employees, and it's always much quicker to get in and out of a local grocery store. This is just something else to add to the list.

I generally don't enjoy shopping at Walmart either. But since I like how they make liberals mad, I sometimes send them a check with a note that says, "Keep up the good work."

 

[Todd]

A Missouri family loses its business after Wal-Mart is given over $2 million to open its doors down the road. A mayor struggles to equip his first responders after Wal-Mart pulls out and relocates just outside the city limits. A community in California unites, takes on the giant, and wins! Producer/Director Robert Greenwald and Brave New Films take you on an extraordinary journey that will change the way you think, feel -- and shop.

Also another tidbit about Wal-Marx practices--They would take out insurance policies on people (without their knowledge) and upon their passing Wal-Marx would collect the benefit.

Exactly. That is not a free market. The little mom and pops doesn't get the community government to fork over grants to build their stores. It's a very un free market advantage.

 

[bolil]

They let me sleep in their parking lot when I was down on my luck. I guess I'm a bit in debt for that.

 

[donnay]

+rep

A lot of people who claim to be from the Austrian school advocate for government subsistence in business. Jeffrey Tucker wrote an article about how well McDonalds was doing and that the measly $Millions in subsidies they got from TARP was offset by the taxes and regulations. I'm with you. If Walmart did not get subsides and protections from governments, they would have to compete.

Thanks, Travlyr.

Subsidies are nothing more than stealing from one group to pay for another. I never gave government the permission to take my money to pay for things I do not consent. So long as they give subsidies to Wal-Marx, Wal-Marx will continue to be the predators that they are...continually seeking out the cheapest slave labor to fill up their stores with disposable goods. There is nothing American about them, they care not who they destroy in their wake.

Government has no business regulating business. Many people are lead to believe that is a "Free Market." They have given the appearance, the illusion, that we have a free market. This market is free to help the 1 percent, not the 99 percent.

The thing that concerns me is, Wal-Marx worked hand-in-hand with the DoD to have spy chips put in the products, that doesn't bother anyone?

And let's not forget Wal-Marx is working with Homeland [In]Security on the, "If See Something, Say Something" snitch program.



Walmart Partners with U.S. Department of Homeland Security in "If You See Something, Say Something."

http://walmartstores.com/pressroom/news/10493.aspx

Everyone has a role to play in keeping themselves and their communities safe. Walmart is proud to be the first national retailer to partner with Secretary Napolitano and the Department of Homeland Security in the “If you see something, say something” campaign. We urge our customers and associates to join us.

Beginning this month, nearly 600 Walmart stores equipped with checkout video screens will begin airing a public service announcement from Secretary Napolitano, urging people to take an active role in ensuring the safety and security of our nation and our communities.




That, to me, is equally disturbing to know that Wal-Marx and government are business partners to snitch on people!

 

[cdc482]

Your friend brings up a decent point, I heard for the first time about 3 years ago.

Wal-Mart is problematic because it is heavily subsidized by the government and therefore our tax dollars. For example, their workers are encouraged to sign up for welfare and Wal-Mart executives enjoy huge tax breaks. But many people see a bag of chips for $1, and they think, wow that's cheap!, unaware of the hidden cost.

Ultimately, people decide what they want to buy. If people become aware of Wal-Mart's hidden prices they will shop at more ethical stores (stores were the executives don't make 99% of profits and the front-line workers make 1%). The biggest reason this doesn't happen is the issue your friend bought up. It would take a huge amount of start-up capital (a large period of enduring massive losses) and/or strong public support of your company to overcome existing giants like Wal-Mart.

Despite the non-free market practices of Wal-Mart, and many peoples' awareness of the hidden cost, there is still not enough support among the public to support another store or fund a more ethical wholesaler.

HOWEVER, to end on a hopeful note, there have been stories of stores with higher prices (at first) but ethical business practices that have enjoyed public support to overcome larger competitors. See 'No Harm.'

 

[Becker]

Let's say your friend is right and Walmart does that.

Don't they have the right to do that?

haven't you heard? corporations are not people so they got no rights, especially if they're the rich ones!

 

[Becker]

They let me sleep in their parking lot when I was down on my luck. I guess I'm a bit in debt for that.

i've heard that a few times from different people. just hope nobody is ever hurt, very generous of them otherwise.

 

[specsaregood]

They let me sleep in their parking lot when I was down on my luck. I guess I'm a bit in debt for that.

Yeah, I've spent more nights sleeping in their parking lot than any single hotel/motel chain.

 

[roho76]

You've really been on the liberal side of things lately.

The other side of the coin is that the WalMart adds an astronomical value to the properties and businesses of their neighbors, something their smaller competitors didn't do. The additional revenue they bring in creates a bidding war among townships for their presence, and they'd be retarded not to take advantage of that.

Since when is it the employers responsibility to pay anything above what the market will bear for wages?

He's right. Cities are picking the winners and losers when they give huge tax breaks to WalMart when Bob's grocery down the street doesn't. Bob's grocery shouldn't have to pay the taxes if WalMart doesn't. How is that Liberal?

 

[Xenophage]

and I'm in California...I just looked, there is a few in my area, I guess I've just never heard people go there, thanks for the info.

Fred Meyer is basically Wal-Mart for snotty people with more money to burn who like to feel superior to the 'white trash' that hangs out at Wal-Mart. They have good sushi and a decent electronics section.

 

[specsaregood]

You've really been on the liberal side of things lately.

I just noticed you added that. FWIW: I'm not on any "side". I'm just expressing my thoughts freely. Feel free to categorize them if you must; but it probably distorts your interpretations.

 

[Keith and stuff]

This certainly isn't true. Many stores (both online and off) have lower prices than Wal-Mart on many of most items. Just shop around for a few years and you will notice this.

Several different dollar stores, ALDI, market basket, Costco, Trader Joe's, Amazon.com, Dell.com, Overstocked.com, Ocean State Job Lot, Save-O-Lot, refurbished places, damaged good places and so on. Even major grocery stores like Kroger and Safeway are sometimes less expensive. Not to mentions sales and specials.

 

[wannaberocker]

+1

Somehow, voluntary exchange is considered a bad thing to much of this board. People agree to work for Walmart voluntarily, and buy their products voluntarily. The biggest winners are the poor, who get job opportunities and much needed lower prices.

Thats true. Especially considering we have so many self described anarcho capitalist here. I must say i was a bit surprised to hear so many protectionist views.

 

[LayZayFaire]

The best and cleanest Walmart I've been to is in the West Side of Chicago. I don't know if you know the West Side, but it ain't no walk in the park. It is pretty damn ghetto and I would definitely not walk around at night, not even with company.

The first time I walked in I was impressed with the cleanliness. I walked through the produce section and the veggies didn't look half bad. They looked pretty fresh and were on shelves in clean woven baskets. I was impressed also with the black staff. They looked happy and attentive. This is much different than if you go to a fast food restaurant in the ghetto. The black workers are usually pretty lazy, it takes forever for them to complete your order, and management is a nightmare. I went to Popeye's in the hood once and they said they ran out of chicken. What? Well anyways, the Walmart was nothing like that. Everything was orderly, I found a great price for Classico Alfredo sauce, and my friend was able to fill his prescription in a reasonable amount of time despite the crowd. Best Walmart I've ever been to, and in a place I would have never thought would have such a well-run store.

That's good shit Walmart, cheers.

 

[LibForestPaul]

There was a very interesting article about this years ago on fastcompany. It shows how Walmart uses their huge buying power to dictate pricing to vendors and forces companies to use the cheapest labor possible - mostly overseas obviously - simply because that's the only way to hit their price points. It's a damned if you do, damned if you don't situation.

http://www.fastcompany.com/magazine/77/walmart.html?page=0,1

And why do those overseas vendors not set up shop and sell directly here in the US; regulation perhaps?