Reply #28: They don't really price compete. They don't charge much less [View All]

[AP]

especially when you consider how low their input costs are.

What they do is benefit from super cheap production overseas thanks to really low wages. So they drive down wages here without REALLY the commensurate drop in retail costs for Americans (which could be interpreted as a value to society if it happened).

Did you know that clothing is about the only product which has dropped in price in the last decade or two (but we probably spend just as much now that more people are fashion conscious)? All other retail prices are up, including food, and everything else. Meanwhile average wages have stagnated or dropped, thanks to Wal Mart and others making huge profits, but not lowering the prices they charge.

Is that capitalism? Well, not really, considering they need the government to protect them from competition.

You know, when the government encourages a coup in Haiti to put in power the owners of the sweat shops, that's the sort of anti-capitalist crap that allows Wal-Mart ot make huge profits at the cost of society.

When the gov't allows capital to be mobil -- to cross borders freely -- but doesn't let labor have the same mobility (ie, when labor isn't allowed to compete on the free market, but allows capital to compete), that ain't capitalism.

When the gov't won't jack up the minimum wage, or takes dividends at 15% and income at 22-35%, that's more government shit that protects Wal-Mart from having to be competitive.

By the way, a missing stat from the OP is that each Wal-Mart costs about 500K a year in Fed benefits because Wal-Mart pays its employees so little they qualify for benefits. That means society is helping Wal-Mart make money. Their profits are subsidized by taxpayers -- and don't forget, the taxpayers who work for living are subsidizing Wal-Mart at a greater tax burden than taxpayers who get their income from stock dividends and capital gains.

Is that capitalism? Is the subsidization of Wal-Mart profits by people who work for a living capitalism? Nope. That ain't capitalism.