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| Another Perspective on Wal-Mart (August 29, 2006)  I am continually astonished (and of course gratified) by the high bandwidth, knowledge 
and experience of this humble site's readers. You, the readers, provide information
to your fellow readers which is often unavailable elsewhere. In that spirit, I offer you one executive reader's experience with that colossus of global retailing, Wal-Mart. (My own view is encapsulated in the accompanying graphic. Any corporation which relies on taxpayer-funded programs to provide medical care for its employees while it makes billions in profits does not win any "good corporate citizen" awards in my book. Let's call it what it is: a corporate leech on the body of the Republic/corporate welfare recipient. If "always low prices" saddles we the taxpayers which billions in additional expenses which competitors such as Costco somehow manage to pay themselves, then are those "low prices" truly low or merely subsidized? For a look into the inner workings of Wal-Mart, let's turn to our first-person account: Approximately a year ago I was contacted about being the CFO for Wal-Mart's real estate company. Just the annual capital budget ran approximately $6 billion. It also had a large staff--approximately 150 people. Anyway after several telephone interviews Wal-Mart asked me to fly out and meet them.To be fair, we have to ask: do Wal-Mart's global competitors, Carrefour (France), Tesco (U.K.), Bailian Group (China) or Aeon Co and Ito-Yokado (Japan), treat their executives and employees any better than Wal-Mart? We cannot easily reach an answer, but we can be appalled by the shoddy treatment offered by Wal-Mart headquarters, and note that all the go-go hype about China neglects to mention the tens of millions toiling for less than $100 a month making all the goods which line Wal-Mart store shelves. The term for this pervasive low wage is the high-falutin' sounding term "global wage arbitrage." I would call it by a simpler name, exploitation, and reckon that such distancing terms as global wage arbitrage are masking the brewing of the next Chinese Revolution as 300 million underpaid, uninsured and pensionless workers observe the prodigious inequality of their society, i.e. the vast wealth being accumulated by the 30 million at the top. As our correspondent observes, perhaps there is a link between Wal-Mart's standards for its Chinese subcontractors and its U.S. employees: the true cost of "always low prices, always." Here are my previous entries on Wal-Mart: That Price Isn't Cheap, It's Subsidized The Most Hated Company in America For more on this subject and a wide array of other topics, please visit my weblog.           copyright © 2006 Charles Hugh Smith. All rights reserved in all media. I would be honored if you linked this wEssay to your site, or printed a copy for your own use.           | ||
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