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Why Wal-Mart will save America

Posted Feb 25 2008, 05:44 PM by Anthony Mirhaydari
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What is probably the most-hated corporation in the United States is poised to become its private-sector savior.

Wal-Mart rang up monster sales last quarter as cash-strapped American consumers flocked to its stores for its famous "everyday low prices." Profit rose 4% to $4.1 billion as consumers redeemed holiday gift cards for basic necessitates like groceries and toilet paper. The company's stunning earnings report shows that during a holiday season in which its rivals faltered, Wal-Mart won by going on a price-slashing rampage, marking down more than 15,000 items by up to 30%.

This is how Wal-Mart will help the average American: By stretching the purchasing power of their dollars. While the Federal Reserve frantically stimulates the economy with liquidity injections and interest rate cuts, the dollar remain weak. This stokes inflation. And of course, continued economic growth in developing countries only adds to the pressure on food and fuel prices.

Wal-Mart, thanks to its vast scale and hard-nosed negotiating tactics, is shielding hapless consumers from price hikes by the likes of Kraft, General Mills, and Procter & Gamble. Also, through the addition of health clinics in its stores, it’s fighting rising health care costs too. Recent research estimates Wal-Mart saves the average family around $2,500 each year. That’s a pretty big deal when you consider the median household income is around $48,000. Simply put, Wal-Mart is reducing the nasty side effects of the Fed’s economic voodoo.

By acting as a disinflationary force, Wal-Mart is actually giving the Fed more room to maneuver by keeping published inflation measures lower than they would be otherwise.

Keep in mind that it’s absolutely critical for inflation expectations to remain low. If they become unanchored, and people start demanding higher wages, all hell would break loose. The Fed would be forced to return to its inflation-fighting congressional mandate, interest rates would go up, and the housing sector would be reduced to a smoldering crater. It’s not coincidental this has been a popular topic lately.

So, on one hand Wal-Mart is helping people live paycheck to paycheck as they suffer through an epic consumer-led recession. On the other, it’s helping Ben Bernanke and his cohorts juice the economy back into high gear. That combination should be enough to put a big happy face on anyone holding a grudge against Sam Walton’s baby.

Comments

 

Wal-Mart saves me a significant amount of money every week on normal things I could  buy elsewhere but paying out more. While something could be said for their produce & meat department & clothing. The savings cannot be outdown with the brand name grocery/cleaning etc. products. Plus, they will honor any competitor coupons to give you the better price. Thankfully, the walmarts I shop at are always trying to better service me along with keeping the store clean and no hassle returns. The only downfall is that I wish we had more...they are crowded and I would like one to be closer.

This has got to be the most asnine article I have read in like the last day. It's people like you that hurt the american people by writing nonsense like this that some poor schmo might believe in and then spend all his hard earned dollars at a place that really could care less and is making hand over fist on workers.

Way to go!

Wal-Mart along with Congress(republicans) should be charged with treason on economic grounds. The republications , Bush and Cheny have bankrupted us with this war, just to get revenge for daddy Bush. War crimes should be brought as soon as possible. Wally world is no better than Bush, selling out American jobs for their own profit. As a union roofer(unemployed) I am not happy with the Democrats view on immigration either. Illegals are law-breaking criminals and should all be deported. The gov'ts estimate of 4.9-5% unemployment may be true for those still receiving benefits, but how many have exhausted those benefits and are getting welfare of nothing because of the ridiculous rules imposed upon those who are desperately needing help in these terrible times!!!!!!!!!!!!!!!!!!!!!!!!!

WalMart costs america money.  Their pay wage isnt livable so most of their employees are on government funded programs like welfare, and if they have kids their children are on peachtree for children costing taxpayers hundreds of millions of dollars.

Then take into consideration each 200 person walmart store costs over 2,000 local jobs I neglect to see where WalMart is saving anyone anything.  Not to mention over 80% of their merchandise is from China.  I am not a fan of economists but I do agree with them when they say WalMart hurts the american economy.  Do the math and WalMart = unemployed Americans, and employed Americans living below poverty.  Way to save America WalMart.  Turn us into Mexico.

WalMart didn't send all our manufacturing jobs to China. Manufacturing jobs have been going from rich countries to poor ones like China for a very long time now. WalMart didn't cause it. WalMart may also treat its employees like crap, but so does the retail industry as a whole.

I love Walmart.  Everything I need under one roof.

This is a bunch of rank writing. This Michael Midarharry does not even sound like an  American. Remember that China employees a lot of people in America as spys and dis information agent. He could be the later. Everyone knows that Wall mart is is benefiting Wal Mart. A look at their prices and you will see that ther goods and foods are not cheaper. I walked out of wal Mart recently to make a purchase at another competeing store because the prices were better, Wal Mart has put countless local business thru out America out of Business. Buy the stock is all this is about. Wal street is full of salesmand from Ivy league colleges that just want to churn the American investor

you guys are morons if you think the "local merchants pay a decent wage". yeah, great, maybe one dollar more than the $9 avg perhour for Walmart employees. Besides "local merchants" are a ripoff. Did you know that Walmart is the #1 seller of groceries in the US? It is a fact that if a family of 4 buy all of the groceries at Walmart-they save close to $2,500 bucks a year(look it up-it is called the mckinsey report) . Count the additional $2,000 bucks from the Bush Tax cuts for a family making $50,000 and you have some great saving, spending money, raises each year. Walmarts popularity goes against you limosine libs and your "arrogant condescension". AMERICANS LOVE WALMART......127 MILLION PEOPLE VIST WALMART EVER WEEK.....get over it folks...........facts hurt. Oh yeah, dems know better than everyone else. Why dont you concentrate on fixing your *** holes of cites like chicago, Philadelphia, New Orleans, Detroit, with all your problems and with your democrat leaders of those cities.  Oooops, that wont happen, dems will do more of what got them there in the first place.

People who work at Walmart are unskilled workers, retirees, part timers, beginners etc. where the worker turnover is 50% percent each year. That is half of the 1.3 millon employees. Walmart has their formula/model for success and that is paying less per hour, no unions, as opposed to say, Target- but they have to deal with higher employee turnover. There is a reason for their cheap prices. Where are those employees going that leave every month........maybe to a higer paying job? Walmart is an entry level emoployer. If you are 30 with two kids and are still working at Walmart or have not advanced up at Walmart to a floor manger or any other dept stores or fast food chains......whatever, then you have to deal with the decisions you made that got you to the point to where you have to work there to live. I understand there are certain situations where someone doesnt have a choice and it is the only option but it is not the norm like you guys make it out to be.

I could get into the canard that Walmart employees have no health insurance. That is  a lie.

By the way, I am a non walmart shopper, Just because there is not one  nearby. I would otherwise. I like to save money.

Wal-mart isn't the answer to our economies problems nor is it the cause of our problems, even though they do treat their employees like crap. You will find that Wal-mart employees are not on welfare becuase welfare helps only the lazy people of society. The solutions is in the gas prices oil companies are getting ridiculous. Also, if domestic car manufactures would produce more efficient cars we could then begin to break our dependence on oil. But, for now we have to make sacrifices whether it be walking, driving less, and going to the stores with the lowest prices, and thats not always going to be Wal-Mart.

i can do alot of my shopping at dollar general and it carries alot of the name brands at wal-mart and its cheaper

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