Blog on the Run: Reloaded

Friday, October 28, 2005 6:15 am

What Wal Mart wants …

Filed under: Weird — Lex @ 6:15 am

Ezra might be wrong about this, but I kind of doubt it:

Wal-Mart does not want a wealthy, economically secure society. Back in the day, the auto companies had to pay their workers enough to buy their cars, which meant raising their living standards up to the middle class. All Wal-Mart has to do is lobby against poverty so abject that the working class can’t shop at dirt cheap big box retailers selling Chinese goods. But they don’t want their workers or low income Americans to move up income quintiles. Give them much more money and current Wal-Mart begin going to Target, Coscto, supermarkets, Amazon. For Wal-Mart, the incentive is a moderately poor society, always teetering on the edge of solvency and terrified of what news the bills will bring. In that context, Always Low Prices is the preeminent concern, and where Wal-Mart makes its goods, how they cut costs, and what they do to the economy is ignored.

This makes me wonder whether Kmart went into bankruptcy reorganization not only because it was mismanaged — which it was — but also because the economy was so good for so long that people stopped shopping there. Anybody got any evidence one way or the other?

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