Newsweek Columnist on WalMart

Ragu,

If the automobile industry is in the crapper it's not because of artificially high wages. It's because the big three, which essentially owned the North American marketplace, grew smug and complacent and got chopped off at the knees by the foreign automakers. Hell, they just booted Henry Ford's great grandson out of Ford.

Same with the steel industry.

Since I come from a city where steel was the lifeblood of the economy, I can tell you categorically that wages is way down on the list of why things headed south. Same reasons plus a few more as the auto industry.

 

Therein lies the rub.

It's only a market if there are competing forces.

As I said in an earlier post, Wal-Mart has pre-determined what the wage levels are going to be. As in, slave wages.

 

Piggy Park

The 'cue was not so good. In that part of S.C., the sauce is a putrid thing that's basically yellow mustard.

 

And more surprising than the fact it sells books, it's called "Piggy Park"

 

Ragu, despite our small divergence in politics you are generally a very bright poster. I, for one, am surprised that you would make the argument that Unions, and the higher union wages, have caused the downswing in development.

Not only is that incredibly disingenuous, but it is entirely too simplistic.

While salaries are definitely market driven, the desire for jobs is artificially driven up (wages driven down) due to Wal-Marts ability to stamp out competition.

Another one of Wal-Marts problems derives from their providing of healthcare. Their actions leave employees turning to government programs to supplement their health needs. At the same time, they donate heavy amounts of money to the GOP, a party that doesn't have any desire at providing healthcare to the public. Thus, on two fronts, they are screwing their low wage earner and not even blinking.

 

JR JR the Walmart Czar.

Wants toothpaste at price of a car

Though he'll be the first to scream

When they double price of Bryll Cream

Because of bush

once again the canadians get it in the tush

 

Boom,

Your rhymes are whack but your meter is off.

 

oh yeah - well your sports section is whack.

 

The market monopolization and the turning the screws on their suppliers are points I can understand. Although, I'll point out that a lot of American corporations are mimicking the WalMart tactics in their supplier negotiations.

But, the wailing and gnashing of teeth over people being 'forced' to work for substandard wages, come on guys. If the pay isn't enough--hey, then don't go to work there. Last I heard, people had the choice to determine where they work. Walmart wasn't dragging people off the streets and slapping a blue vest on them against their will. Let me know if I've missed something there.

And the market does decide the wages. If someone can make more unloading trucks or ringing a register at Target or McDonalds or Ace Hardware, well, I think you'll find most folks would migrate to the place that pays the higher buck, and Wally World would be facing a labor shortage. So, they do need to make sure they are offering a market competitive wage to draw folks in.

And for all the badmouthing of WalMart wages, it might just be fair to mention the thousands and thousands of current or former employees who spend their weekends on their yacht at their seaside condominium purchased on the earnings of their stock options or Walmart stock in their 401K.

If you want to make an argument about inadequate wages across the retail and service industry as a whole and the need to do something about that, well, you might have something there. But to single out one company on its own short circuits your entire argument.

 

The auto industry is in the crapper because of unions and retiree liability .

Toyota can pay workers $35 per hour and GM has to pay their unionized workers $85 per hr-

makes it pretty hard to compete.

 

This "the market determines the wages" is bullshit.

If you completely dominate the retail marketplace (as Wal-Mart does), if part of your policy is to vigorously fight against union intrusion of any kind and if that fight is supported by Orwellian "right to work" laws, then you will pay people whatever the fuck you want. And then THAT becomes the marketplace.

And the "go work somewhere else" was the old fallback position when companies in the 19th and early 20th century were accused of unsafe working conditions. "Well, if you don't like it, go work somewhere else".

Surely we've moved beyond indentured servitude.

 

We flogged this to death in an earlier thread.

And the retiree liability was predicatable. The automakers chose to ignore it.

The $85.00 an hour is a shell game number.

Fact is, US automakers got greedy and put all their eggs in the SUV basket. Now the chickens really are coming home to roost.