PDA

View Full Version : How 'Everyday Low Prices' R Costing America JOBS



Gayle in MD
08-12-2012, 08:10 PM
<span style='font-size: 14pt'>How 'Everyday Low Prices' Are Costing Americans Their Jobs</span>
By Adam J. Wiederman, The Motley Fool
Posted 7:00AM 08/10/12 Posted under: Economy, Wal-Mart Stores, Jobs

As consumers, we welcome Walmart's (WMT) low prices.

<span style='font-size: 14pt'>But here's the thing about these low prices -- they're doing the U.S. more harm than good.</span>

<span style='font-size: 14pt'>A new research report has found that low prices have actually caused unemployment to rise, and dealt a massive blow to the manufacturing sector.</span>

<span style='font-size: 14pt'>Look no further than the 7 million manufacturing jobs the U.S. lost from 1980 to 2011, according to a recent research report from Demos. The report acknowledges this happened because of "a variety of complex factors." But Walmart had a bigger hand in this than most of us realize.</span><span style='font-size: 14pt'>Cutting Prices Does Have Its Cost</span><span style='font-size: 14pt'>The problem starts with Walmart's selling point: low prices</span>.

<span style='font-size: 17pt'>These low prices are possible both because Walmart pays its employees low wages and because the bulk of Walmart's products are sourced from foreign factories, where raw materials and labor are cheaper.

What's more, Walmart can -- and does -- use its massive size to bully American companies whose products it sells to do the same. In fact, Levi's jeans and Master Lock "were pressured to shut their U.S. factories and moved manufacturing abroad to meet Walmart's demand for low prices," Demos said.</span><span style='font-size: 17pt'>What's more, many well-known companies rely on Walmart for more than 20% of their revenue, according to Business Insider's calculations, including:</span>

Helen of Troy (which manufacturers kitchen tools under the OXO name)
Jarden (behind the Mr. Coffee brand).
Hanesbrands (the undergarment company known for Hanes and Wonderbra).
And they're not alone. Because these businesses are so heavily dependent on Walmart, they have no choice but to acquiesce to whatever Walmart asks of them.

So -- like Levi's and Master Lock -- if Walmart tells these companies their products must become even cheaper, they have to cut costs. Doing that requires finding cheaper raw materials (sourcing internationally) or cheaper labor (again, from overseas).

But This Can Only Go So Far

This cost cutting has tangential side effects that cost more jobs than just those folks working at factories.



Four of Walmart's top 10 suppliers in 1994 had filed for bankruptcy protection by 2006, according to Harper's Magazine, meaning disappearing factory jobs as well as the white-collar jobs at their headquarters.

Then consider Walmart's competitors, Target, Kmart, Dollar Tree, etc. To remain competitive with Walmart, they have to do exactly what Walmart does: look for cheap foreign product sources, or squeeze low prices out of their suppliers.

<span style='font-size: 17pt'>All of which continues to trickle down the economy, sending an increasing number of jobs abroad and allowing Walmart (now the nation's largest employer) to keep their employees' wages low.</span>
<span style='font-size: 17pt'>So remember this next time you rejoice in finding a low-priced item at your local Walmart: Those "everyday low prices" may have cost you or someone you know their job.</span>



http://www.dailyfinance.com/2012/08/10/how-everyday-low-prices-are-costing-americans-their-jobs/


<span style="color: #990000">This is why I refuse to shop at Walmart.

Each one of us can play a role in bringing our industry and economy back.

We, as consumers, do not have to do business with companies that outsousrce jobs to China, and drive down American's wages.

There is no more powerful policy for improving the economy than for Americans to go out of our way to boycott the companies which are hurting American JOBS and wages, and as the article indicates, boycotting WALMART should be our number one priority!

G.

</span>

eg8r
08-12-2012, 08:28 PM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">How 'Everyday Low Prices' Are Costing Americans Their Jobs</div></div>Yet, right here on this board we have a new employee of Walmart. Imagine that, Walmart is creating jobs.

Seeing how Walmart has treated sack during this tough time is one reason why I will continue to shop at Walmart.

eg8r

Gayle in MD
08-12-2012, 08:41 PM
This article, which you either did not read, or did not understand, has absolutely nothng to do with Sack.

Stay on the subject.

G.

Qtec
08-13-2012, 01:53 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Yet, right here on this board we have a new employee of Walmart. Imagine that, Walmart is creating jobs. </div></div>

Really? That's a big jump.
He probably got that job because the person that had that job before him either quit or got fired.

That's not job creation.


Are you aware that their have been 100,s if not 1,000s of lawsuits against WalMart for abusing their staff?

Q

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Last week, Wal-Mart Stores, Inc. announced that they have agreed to pay between $352 million and $640 million to settle 63 wage and hour lawsuits filed against the retailer in 42 different states. <span style='font-size: 20pt'>The lawsuits accused the company of cheating hourly workers by forcing them to work through breaks and not paying them for overtime.</span> </div></div>

Minimum wage is not enough, now you have to work for nothing to keep your job. The last people in the USA who worked for nothing were slaves!

LWW
08-13-2012, 03:16 AM
The problem of WALMART is actually the fault of the US consumer ... WALMART is only reacting to what people demand.

Today's main consumer is the "ME GENERATION" ... and it is more concerned with getting a DVD player for $29 than it is with their neighbor having a job.

Our communities no longer having a feeling of community, replaced with clusters of selfishness, has wreaked havoc on our society.

Every product is labeled as to where it's made ... yet few care.

Until we care for each other again, this deterioration of society will continue.

Qtec
08-13-2012, 03:52 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">The problem of WALMART is actually the fault of the US consumer ... WALMART is only reacting to what people demand. </div></div>

Its not the fault of the people. When your wages don't rise for 20 years, you have to shop around.

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"> Today's main consumer is the "ME GENERATION" ... and it is more concerned with getting a DVD player for $29 than it is with their neighbor having a job.</div></div>

There is something to that.

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Our communities no longer having a feeling of community, replaced with clusters of selfishness, has wreaked havoc on our society. </div></div>

Why is this?

Maybe not preaching greed is good and that its the law of the jungle and dog eat dog and waging a war against the poor might help.

Alienating people and dividing them does not breed unity.

From the horses mouth... divide and conquer (http://www.youtube.com/watch?v=K1S_Pxw2n-U)



Q