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Think US Manufacturing Is In Trouble Now? Wait Till WALMART Jumps In

photo of 2007 Northcross Mall Wal-Mart protest by Kristin Hillery, via flikr

Photo by Kristin Hillery, via flikr

Hey, Richard Trumka! You didn’t need to be so darn diplomatic yesterday. My take: Wal-Mart getting into in US manufacturing is pretty much the LAST thing America’s economy needs right now.

Unless, of course, somebody’s had an attack of conscience and they’ve completely changed their business model.

Really quick, let’s look at Walmart’s business model:

The retailer has a clear policy for suppliers: On basic products that don’t change, the price Wal-Mart will pay, and will charge shoppers, must drop year after year.

Yep, it’s that old ratcheting-down thing. Works the same way as chained-CPI for Social Security benefits. Or, what’s been happening to the middle-class for the last 40 years. Death by a thousand cuts (also known as “creeping normality”). They take a little bit this year, and a little bit more next year, and a little bit more the year after that.  Wal-Mart’s business model:

Wal-Mart also clearly does not hesitate to use its power, magnifying the Darwinian forces already at work in modern global capitalism. …The Wal-Mart squeeze means vendors have to be as relentless and as microscopic as Wal-Mart is at managing their own costs. …Wal-Mart has also lulled shoppers into ignoring the difference between the price of something and the cost. Its unending focus on price underscores something that Americans are only starting to realize: Ever-cheaper prices have consequences.

Why would anybody in their right mind want to apply this business model to US manufacturing? (Other than, of course, the Walton family. But maybe having a bigger fortune than the bottom 42% of Americans, combined, isn’t enough for some people…?)

Isn’t it time to start ratcheting things UP again?

Mr. Trumka, please… save the diplomacy for elsewhere. We gotta stop this Race to the Bottom.

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made in prison labelAnd, oh yeah… something else about “Made in the USA.”

If you haven’t noticed, we’ve got a lot of prisons here in the US. And inmates work for really cheap wages.

That USA-grown organic produce sold at Walmart? Yep.

Stuff that gets returned to Walmart? Yep.

And that may just be the tip of the iceberg. Thanks to ALEC pushing “prison industries enhancement” laws for the past 20 years, there’s now lots and lots of stuff “Made in the USA” behind prison bars. And no way to tell how much of it ends up for sale on retail store shelves. Apparently, in some states, it’s legal to sell prison-made stuff in local stores… as long as it’s not transported across state lines.

Myself, I’m thinking it’s about time for another nationwide product-labeling campaign. So consumers will know exactly where in the USA these products are made.

H/T to the Teamsters for the really great graphic above… and to Dennis Trainor, Jr. and Acronym TV for the video below.

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About Liz Iacobucci

Liz Iacobucci is the former Public Information Officer for the State Employees’ Association of New Hampshire, SEIU Local 1984. Over the past three decades, she has served in government at the federal, state and municipal levels; and she has worked for both Democratic and Republican politicians.
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