Good ole Walmart

[PressurePros 249]

Am I the only one that sees something wrong with Walmart's primary concern? The cheapskates of the US that wave the flag and proclaim "Buy American" are the same hypocrites that keep this machine running.. and we wonder why our own economy is hurting.

Wal-Mart Stores Inc., a major buyer of Chinese-made shoes, toys and other goods, expects procurement in China to hold steady this year at about $9 billion despite a rising exchange rate and product safety concerns, the retailing giant's vice chairman said Monday.

Chinese suppliers have stayed competitive amid higher inflation and a rise in China's currency, the yuan, by improving efficiency and product quality, said Michael Duke.

"I wouldn't see any major variation" in procurement from the 2007 total of $9 billion, Duke told reporters. "China will continue to be a major production portion of direct purchases by Wal-Mart for a long time"

Read the rest of the article

[plainpainter 217]

It's worse than you think Ken, I have seen apple juice at my grocery store that came from China - and I live in New England - the capital of apple orchards!

[814jeffw 71]

I think the problem though actually begins with the consumer. When stores purchase products for resale, they have to buy what they can resale at a profit. Don't get me wrong, I hate this stuff too, but the fact is, American companies can't compete with foreign companies as far as cost is involved. Consumers look for the best prices, the best prices come from overseas, if a store tries to buy everything USA, they will not survive, because most people are looking for the better price, most won't cut off there nose to spite their face. People have to do what's is best for them and their families. Until American companies can compete with cost, it will always be this way. BUT I prefer having set minimum wage and other criteria, even though these are factors as to why American companies have trouble competing. The quality of life here is better than those countries where all that cheap stuff comes from, and higher costs is the trade off. But I understand what you mean by hypocrite, but then wal-mart doesn't much care what anyone thinks, they do as they please because it is us, the consumer that enables them. I go to wal-mart because of cost and selection, and I probably always will. It's convenient.

[Kory 14]

Our government is at fault for this. Based on import export rules.

[PressurePros 249]

Jeff, it absolutely begins with the consumer. In our quest to get something for nothing we will forego our country's economy, lower the standard of living for our workers, drive companies to other countries for proucts and outsourced services, and put local entrepreneurs out of business.

For what? To save 50 cents on a bottle of Windex?

This is why customer service is a thing of the past. We get angry when people ask us to lower our prices or ask for deals yet we go to Walmart and support the destruction of our retail infrastructure with the same mentality as that of a cheap customer.

[John Doherty 126]

It's a double edged sword.

In a Super Walmart, you can get a precooked chicken and a can of green beans for about $5.

You can feed a family of 4 with that, they won't be stuffed, but they won't be starved either.

[plainpainter 217]

The reason why American Companies can't compete - is because these 3rd world nations pay their workers doggy doo. When globalizations starts to encompass the same workers' rights world-wide - then we'll see a levelling effect. But until then capitalists will continue to exploit these vast inequalities.

Ken - I don't see why you are so bothered, I see this as the natural outcome of unfettered capitalism at its finest. This is what happens when you remove government intrusion like the conservatives and lobbyists have been pressing for the last 3 decades. This is the outcome when you let these 'whores' and 'gluttons' practice their so called voodoo economics of the 'marketplace' will sort out everything or their laws of 'supply & demand'.

I am a small business owner that also tries to invest in the stock market - but that's because I feel I have to, in order to survive in this day an age. Give me a 40hr job with bene's under FDR's New deal liberal socialist government progams - and I will take it! Everybody had jobs and the best economy as a result of FDR and his programs. Tax the 'rich' at 85% - that was when America was at its finest hour. Lowering the tax rates to 35% tops and the exportation of jobs to third world countries and the total removal of any government oversight into how companies conduct business. Well - I guess it's just time to bend over.

[Doug Dahlke 114]

I try to avoid Wal-Mart at all costs. My wife cuts coupons and shops Kroger or Publix. We buy other products at other stores even if it does cost more. What amazes me is that the public in general doesn't realize that by shopping Wal-Mart and other huge chains that buy offshore, they are contributing to the situations that most of them complain about, lost jobs, inflation, bad economy, etc.

I worked in manufacturing for 30 years. American companies can't compete on price because the US government makes it very difficult to turn a profit and then taxes the heck out of them when they do. China and other foreign nations subsidize their industry and close their markets to us.

[plainpainter 217]

Doug - American companies aren't taxed sqiddle-dee-doo. If they were taxed any less, and there would be nothing left in the coffers to do anything in this country anymore. This country has made it very easy for companies to turn a profit - by allowing a safe-haven in countries in China. If thier currency was allowed to float on the open exchanges and they were forced to implement environmental laws - which the Kyoto protocal allows them to get away with - things would even out.

[Doug Dahlke 114]

Well Daniel we will have to agree to disagree. US corps are taxed out the wahzoo. We are also the only nation in the western world that double taxes corporate profits because after these companies pay their taxes and send out dividends to their investors, the investors have to pay taxes on the dividend. No other western nation does that. When I talk about taxes I also mean all the other benefits that have to be provided, regulations complied with, etc.

I do beleive there are greedy companies out there but by and large most companies just want to be profitable and survive. Isn't that what you want for your company? I place the blame on government for our insane trade policies and punitive domestic business rules and regs. I also blame consumers for continuing to put idiots in office that perpetuate those policies and patronizing the stores that get most of thier product from China.

[MMI Enterprises 289]

Yea the word taxed can be used generically as an amount of stress or burden placed upon an entity. American business is taxed coming and going in all sorts of manner both federal and local isn't it? I don't support making things hard for corps as the corps are everyman just like you and I by way of investing. Why double tax yerself.

I support searching out not just equal footing with the rest of the world but rather better footing. I support harvesting resources of other countries. That is how this country grows in comparison to the world. Problem with our harvesting is that we've industrialized them in the process and they have wants too.

The bigger the buyer we are (aka wlamart) the more power we could have over them to lower their selling price. Why hate Walmart?. they doing everyone a favour that the goobermint can't. Just change career if made in america puts ya out of business.

Yes in the long run we may forget how to make things but hey we'll still have our natural resources in reserve when the rest of the world starts to go dry. Things like oil, wood, minerals is what I mean. Anyway. sorry probably off topic.. :)

[Wayne S. 14]

"Give me a 40hr job with bene's under FDR's New deal liberal socialist government progams - and I will take it!" Typical, "What can the government give me" attitude!

"Tax the 'rich' at 85% - that was when America was at its finest hour" Mean old rich people should have to give away thier money!

Daniel

Your an american company, Are you paying your fair share of taxes(85%)?

With comments like yours, I don't understand why we haven't went straight to communism, bypassing socialism. How is it, you guys think our government does a better job than anyone, telling them how to run their business. Do you need uncle Sam to step in and tell you how to run your business, where you can do businees, how much you can and cannot charge! Then at the end of the day, tell "you", you can only keep 15% because other people think your rich! Are you going to bother to try and run a company, if all the government is going to allow you to keep is 15%?

Some of these companies that moved out of the United States, done so, to be competative with the global market, if they diden't move, they could close their doors and not do business anymore! Either way The US was going to lose those jobs!

You say you invest in the stock market, Then you are investing in the hopes that one of those "rich companies", makes a profit and gives you some profits and dividends off those "God forsakeen profits".

[Scott Stone 604]

Okay Plain painter, there are a few things that are wrong with your assessments.

1. FDR presided over the great depression, where there was 30%+ unemployment. They had problems for the first two terms he was in office. He did employ people on the WCA and CCC, but those jobs were basic labor jobs, not high paying nirvana. In his thrid term, we were in a full on war economy. That means government funded manufacturing, etc. When I talk to my Dad, he remembers rationing, and food shortages, as well as scrap drives that you were almost required to participate in.

2. Corporate Taxes. Another sad misconception on your part. Here is a table that shows the various corporate tax rates. Tax rates around the world - Wikipedia, the free encyclopedia Remember that you need to add in the state taxes since no other country has those. So figuring that the base federal rate is 15% and only really small corporations have to pay, and it goes up to 12% state and 39% federal for a total of 51%, I think that we are not anywhere near one of the lowest taxed countries on earth on a corporate level, in fact, we are the most highly taxed at the top rate. So then I guess we can look at the individual income tax rate. The minimum federal tax on an individual is 15.3% because, as I am sure that you well understand, the half of FICA the employer pays is part of an individuals income. After that, it goes up to a total of 60.6% of income for the highest earners. I know that you are going to say, what about all teh deductions, well, EVERY country has similar deductions, so that is really not a decent argument.

Now add in all the other taxes you pay, without knowing it. You pay the corporate tax as a consumer. I know I fifure it into my prices, and you probably do yours. Everyone pays hidden taxes on every day thigns that we purchase, such as 38 different taxes on a loaf of bread, 27 different taxes on milk, etc. It boils down to our nominal tax rate, including Sales tax, income taxes, FICA taxes, etc approaches up 75% in some areas.

So the question is, how much do we need to pay in taxes?

By the way, If you are not paying a MINIMUM of $4500 per person in your household in Taxes, you are not paying your fair share. http://www.census.gov/prod/2005pubs/cffr-04.pdf#page=7 except you are in Massachusetts, so you should be paying $8200 per person.

[Jeff 232]

We will have nothing eventually from our own country. We are going to be totally screwed sooner or later, we are showing signs of it now.

Im surprised at youKen, I thought you would say its the American way, unfettered capitalism. No being a wise ass, just thought thats how you saw it, or it might of be doolittle, I cant tell you two apart sometimes LOL

[814jeffw 71]

Most can't worry about what the future holds. Even if they were so inclined , it is now that is of most importance to a lot of people. A lot of families aren't making it now, so they must save anywhere they can. And if wal-mart profits from being the cheapest, well I guess they are doing what they need to do to have a thriving business. It's not a perfect world.

Jeff

[bigchaz 157]

I'm just jealous I didnt come up with an idea like Wal-mart.

Just like i'm jealous I didnt start an oil company

Its not like its a one way street with china here. Foreign investment is one of the major surplus units for market capital

And the foreign exchange is the largest financial system in the world.

We don't live in a world where ever country is self sufficient and isolated. If china can provide a product that is cheaper and ultimately saves consumers money, that money saved is going to go toward creation of new jobs. Its an overly simply way of looking at it (gotta run here) but just as a rough example: You save money on your weekly food bill by shopping at walmart. As a result, american retail in the long run loses jobs.

However, you take this extra money saved on your food bill and go out to eat several more times per year. Food services market in the US now much hire more workers.

Even when it comes to customer service outsourcing. Yea getting help for your computer from dell is impossible. However, its likely that your computer is costing less due to lower labor cost for call centers. Now look at services like geek squad and home repair computer businesses. Theyve soared in the last decade

[PressurePros 249]

Charlie, a bit too oversimplified. That's how it reads in theory instead we are in wicked trade deficit with ramifications that affect our direct economy.

Here is a good article on the topic. The Wal-Mart effect: Its Chinese imports have displaced nearly 200,000 U.S. jobs

[MMI Enterprises 289]

The conclusion section reads like a free Tibet campaign...Yea maybe we all should worry about too many hands in a manufacture cookie jar/role as it means low wages or job loss but I tend to see same as what Charlie (no pun) sees in this and say our coffers are better suited to weather a storm of imbalances and readjustment of job role. The imbalances to me seem more to be related to job role changes on a mass scale and wealth redistribution is just around the corner so the little man can survive. Isn't it about time that artificial value of things both material and abstract come back to reality?. Look at the houseing market. I have no problem with the adjustment. I didn't suck a ton of artificial equity out of a house and put myself in an upside down situation to buy an artificially priced item made in China, or Germany, etc.. Yes, have compassion for those that are struggling and having to readjust for sure but I don't see people starving in the street yet.

Is it fair to say that a decent majority of Americans expect to live like kings and don't really want to break a sweat in harvesting and producing things to export. I think they like their little break and don't see the world for what it is in being a rough labourous place. Not saying we are lazy but that we would rather all be in an office making moneys off abstract things...anyway...Instead of hating Walmart we should hate ourselves for not ruling the kingdom properly in sending out emiceries/war parties to the four corners of the world to bring back the gold and allowing the artsy/soft senate to conspire against us..sorry wrong century and off topic again..:)