ANTI-WAL-MART CAMPAIGN IS MISGUIDED
September 6, 2005
Wal-Mart is the favorite whipping boy of labor unions and leftists who blame the retail giant for everything from low wages to a lack of health insurance. Yet, Wal-Mart workers and customers see things differently, says Investor's Business Daily (IBD).
- A new Wal-Mart in Oakland, Calif., built on a once empty field, brought 350 jobs averaging $10.82 an hour to a heavily minority area; it will also bring in a half-million badly needed tax dollars.
- Wal-Mart now employs more than one of every 100 American workers and accounts for 2.4 percent of U.S. Gross Domestic Product; Wal-Mart's entry into a market also increases jobs by 100 immediately and by a net 50 jobs in the long run.
- During the "new economy" surge of the late 1990s, Wal-Mart had a 48 percent productivity advantage over its competitors, which forced others to get better or go under; most got better -- a lot better -- to keep up.
- According to Harvard University business professor Pankaj Ghemawat, Wal-Mart helps push prices down 5 to 8 percent in markets it enters, saving customers $16 billion a year; but because competitors have to match its prices, overall savings are even greater.
Suffice to say, the anti-Wal-Mart campaign has targeted a company that in large part has helped keep America's economy going, says IBD.
Source: Editorial, "Wal-Mart Nation," Investor's Business Daily, August 26, 2005.
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