Wal-Mart hate propaganda is a mix of half truth, complete lies and anecdotal stories that most people believe because they seem like they should be true. In this post, I want to dispel some of the negative stereotypes detractors commonly use, give the truth about Wal-Mart’s practices and show how free enterprise may have certain undesirable consequences, but in the end, we’re better off because of it.I recently watched Wal-Mart: The High Cost of Low Prices—a film outlining the atrocities of the retail giant. In it, the film makers covered many of the general complaints about Wal-Mart and big business in general, and suffice to say, many of the points made were only half of the story, while some of them weren’t part of the real story at all. I’d like to compare some of the claims made against Wal-Mart with some of the truths about Wal-Mart by dividing each into categories.
Employment. Wal-Mart employs more than 1.3 million Americans. It is—and has been for some time—the single largest employer in America, not to mention the peripheral jobs that stem from Wal-Mart’s purchases and distribution. Cynics say that’s not the entire story though; they often claim that Wal-Mart is bad to employees, citing racism, greed and low wage jobs that increase social ills. It is hypercliche to hear of a down-on-her-luck mother of three who works one of her three jobs at Wal-Mart just to be able to live month to month. The following are a few true facts about Wal-Mart’s employment practices. The average hourly worker, not including salaried workers, is $10.51—nearly double the federal minimum wage of $5.85. Many people cite the fact that there are a number of Wal-Mart workers who are paid so little, they remain on welfare despite having a job. This is true; however, there is one very important caveat. This statistic includes part time employees. When part time employees are not included, less than one percent of full time employees still legally qualify for welfare. Wal-Mart has historically been dedicated to promoting employees from within the company. In 2004, literally 70% of all Wal-Mart managers started by working on the floor in a Wal-Mart. This is not to say many full time Wal-Mart employees don’t struggle to get by, but it’s not because Wal-Mart is driving them into the poorhouse with unfair employment practices.
Community. The most vocal of all general complaints against Wal-Mart is that when one is built in a small community, it destroys the small town quality of life. This, above all others, is
the argument that people believe because it seems like it should be true. However, the truth is that the effect on small communities is mixed. When Wal-Mart expresses interest in a community, it is not untypical for a local politician to stand up and speak for everyone in saying the people do not want a Wal-Mart, but Wal-Mart is pushing its way in. They say that small, local businesses are forced to close their doors because they can not compete with the large retailer’s prices and selection. There are a few considerations here. Throughout American small towns, whether a big-box retailer exists or not, main street is disappearing. Increased technology and communication, along with an increased number of malls and strip malls, have done much more to adversely affect small town way of life than Wal-Mart could ever dream. Another consideration is that Wal-Mart doesn’t necessarily drive small retailers out of business as much as it might force them to become more specialized—which, ironically, is made easier by this next fact. In a 2004 comparison, the average family of four has $2,000 more disposable income because of the money Wal-Mart saves them over the course of the year. This money creates opportunities for other smaller companies to provide services families could otherwise not have afforded.In one interview, a local politician said something to the effect that, “Our Wal-Mart was built on a great piece of industrial land—land that I wanted to be used for industrial jobs!” I really don’t know how to respond to this, other than to say if you want a specific piece of land to be used for a specific type of job, then you buy the land and you create those jobs. If the captains of industry deemed this “a great piece of industrial land,” then it wouldn’t have sat vacant for fifteen years, as it did. People will always have a nostalgic view of the ways things used to be, and any time changes are brought about, there will almost always be a sense of loss. Whether this sense of loss results from an actual loss is not only unclear, it’s inconsequential. The loss of small communities and the increased popularity of big retailers is really an argument of the chicken and the egg: in some ways, the changing of small communities is what has led to the increased presence of retailers like Wal-Mart, rather than retailers destroying communities.
Profits Over People. When it comes to people, detractors will always mention the fact that Wal-Mart is incredibly anti-union. They claim Wal-Mart fights unions because they want to continue their horribly abusive employment practices. I kind of see this as a nonissue because 1) most of the “abusive” employment allegations are simply are not true, and more importantly 2) consumers don’t want Wal-Mart to deal with unionized employees—only unions want it. Consumers (in fact, workers themselves to a high degree) would not be best served by Wal-Mart’s adopting union labor. Unions are big business—for the unions themselves. At a very modest union due of $19 per month, if all applicable Wal-Mart employees were unionized, it would generate $296,000,000 per year in union dues. Union demands are then passed onto the consumer.
I should mention this as it directly relates to profits. While many of you do not know what this means because the companies for which you work do not participate, Wal-Mart participates in a very aggressive profit sharing program for vested employees. After tenure, many employees receive bonuses based upon the efficiency and profitability of their specific store and Wal-Mart as a whole.
Supplier Relations and Pressure. This really deals with two different complaints. First, suppliers are under constant and extreme pressure from Wal-Mart to make things cheaper and faster. This makes me laugh for two reasons. If you supply them products and are not comfortable with the pressure for timely, budgeted delivery, no one is forcing you to supply products to Wal-Mart. While it might mean significantly less production for your company, that is something for you to decide carefully. Second, in any supplier relationship, there is always constant, “unfair” pressure to reduce cost and production time. In some ways, your success as a major supplier lies only in your ability to deal with unfair demands for price and production. I couldn’t say if Wal-Mart is particularly worse about this than any other distributor, but I can say with resolution that unfair demands are sewn into the very fiber of the manufacturer-distributor relationship.The second complaint about supplier relations is that Wal-Mart buys from foreign sweatshops that pay chicken scratch wages and support child labor. This, like most bad things, is something that seems far worse than it is, and to understand it requires us to understand context. It is true that some of Wal-Mart’s sweatshops pay workers as little as 41 cents per hour; however, when we understand this in the context that the average factory worker in China makes only $2.20 per day, the wage seems quite civil.
Child labor is much the same in that it must be viewed in the proper context. The simple fact that is few countries share the economic prosperity we enjoy in the developed world. In some countries, children are required to join the workforce in order to support their families. Sweatshops that produce goods may seem atrocious when taken out of context, but they are very civilized when compared with other options for children and unskilled youths. These manufacturers are not forcing children to work as much as they are providing a more civilized, better paying option to children who would be working regardless.
In contrast to the major complaints about Wal-Mart, there are a few things that are rarely spoken about. After Hurricane Katrina, Wal-Mart donated $20,000,000 in cash, more than 100,000 individual meals and 1,500 semi-trucks full of food, as well as the promise of a job to any person dispossessed by the hurricane. Wal-Mart also subsidizes the cost of more than 360 popular prescriptions, offering each of them for only $4 per fill. In 2004, Wal-Mart gave more than $170,000,000 in gifts to more than 100,000 individual charities.
By no means am I saying Wal-Mart’s existence brings about no negative repercussions. What I will say, however, is that the vast majority of negative repercussions brought about by Wal-Mart are effectively negative consequences of free enterprise. There will always be undone things companies or individuals could do to curb the marginalization of others, but to hold that against Wal-Mart in particular is ignorant at best. Wal-Mart is just an easy target because of their size.Hope, however, is not lost. These negative repercussions of free enterprise are curbed by one very important thing—consumer freedom. If you don’t like something a private organization or individual is doing, you don’t have to do business with them. It’s not one person’s responsibility or right to speak for an entire community in saying, “We don’t want a Wal-Mart!” In the end, it always goes to a vote—the vote of the consumer dollar. If the community truly does not want a Wal-Mart, then members of the community will not shop there, and the store will close shortly after opening.
In the end, people like to hate Wal-Mart for a variety of reasons, but it really boils down to three justifications for personal shortcomings. Since Wal-Mart is owned by pigs, if I don’t own a part of it, I’m not a pig. Since Wal-Mart’s workers are unskilled and unsuccessful, if I don’t work there, I’m not unskilled and unsuccessful. And since the people who shop at Wal-Mart are of a lower socio-economic status, if I don’t shop there, I’m not a hillbilly. All of which are conveniently untrue, you greedy, unskilled, unsuccessful, hillbilly fuck.








