Discount Stores and the Ignorant Consumer
There have recently been many stories about how discount stores are actually ruining the American work force and the economy. The problem is that none of those consumers read.
It’s no secret that the vast majority (if not 100%) of Wal-Mart’s goods are imported.* Wal-Mart has claimed that they import so many of their goods in order to keep prices low, which in turn allows their consumers to purchase items, they would not be able to afford otherwise.
“Lest anybody forget, 20 percent of Wal-Mart’s customers don’t have a checking account and they do not have the economic luxury of making a broader social statement.” – Chief Executive, Lee Scott (October, 2007)
The way I see it, Scott is claiming that his company is only out to help those who can’t afford to shop at higher end shops…such as Ace Hardware. I know, I know. Hammers can be expensive, so why shouldn’t people go to Wal-Mart for such high priced items?b The reason is simple.
Like many discount stores, purchasing goods overseas is cost effective for the stores. The stores in turn claim to be helping the economy, by selling everyday items at a discounted rate and providing jobs, by making such a profit that they can put a stores five to ten minutes away from one another and corner the market. What they don’t tell you, however, is that by cornering the market certain US based companies have to shut doors to their factories and outsource jobs. The problem is that Americans, simply put, make way to much money. And don’t even get me started about how they always want breaks and insurance and to work less than 12 hours a day! (I hope you have caught the subtle sarcasm.) With unions and employees that, generally speaking, have brains and choices, American factory based work cannot compete with labor from oversees.
That’s not even the best part about it…
People who lose their jobs to outsourcing are now left in dire straights, often falling on hard times and left with no choice but to shop at the very places that put them out of business.
Before I go any further, I would like to let everyone know that I am not a person who is opposed to buying imported goods. I drink imported beer, many of my clothes were made in Vietnam, and the very computer I’m typing on was made in China. With that being said, I refuse (and anyone who knows me, can attest to my love of boycotts) to shop in Wal-Mart.
The world is getting smaller. People can travel faster, safer, and even cheaper. The internet has opened up many doors, our parents couldn’t have even dreamed of. A glo0bal market is important. The problem with stores like Wal-Mart is that they keep the price of American goods high in the name of low prices. If Wal-Mart ceased to exist, the American economy wouldn’t suffer, the global one would. While Wal-Mart may create 100 jobs per store, they may be causing thousands to be lost, all while creating a whole new crop of customers.
Some consumers often complain that people don’t buy American anymore. Quite honestly, if it were done right America would never need to produce another product and they wo0uld still survive. Think about how little we create and export now. Yet, when our market began to waiver, the entire world suffered. Americans were meant to be the stock brokers and the masterminds behind the great products, not the producers. America has grown out of that role a long time ago. However, if America still wants to be involved in production of products, they need to stop shopping at stores that can only keep their prices low, due to outsourcing and imports.
While stores like Wal-Mart make everyday and luxury prices very affordable and obtainable, it perpetuates the cycle of job loss. Discount stores purchase items from foreign countries>US companies are unable to keep up with the competitive pricing and outsource their labor departments>100s to 1,000s of workers are without jobs>Unemployed workers need to shop at discount stores in order to maintain a standard of living >Stores make a profit and open more stores>Stores provide jobs for Americans and purchase more good from overseas>More US factories close…
It is constant cycle of buying and selling and opening and closing. This cycle is putting people out of jobs while, forcing them to purchase goods from the stores that instigated their layoffs.
The biggest problem with all of this (aside from the obvious) is that the general American Consumer either doesn’t know or doesn’t care. Nothing can change without people. A corporation (like Wal-Mart) would be hard pressed to continue their current business practices, if many consumers simply stopped shopping there.
