(with apologies to my friend the WM manager)
The giant retailer’s low prices often come with a high cost. Wal-Mart’s
relentless pressure can crush the companies it does business with and
force them to send jobs overseas. Are we shopping our way straight to
the unemployment line?
An interesting story that has potentially huge implications. The author discusses in great detail the pressure that Wal-Mart puts on suppliers, how that causes many to outsource production — often to China — and the results this can ultimately have on the supplier.
I see a larger problem in this cycle:
- WM pressures lowering of prices.
- Supplier complies, ends up outsourcing many jobs.
- Jobs lost here end up in China.
- Goods come from China, sold in massive quantities in WM (remember how, only a few years ago, WM touted “Made in America” and then “Made in America, when we can find it”).
- American consumers buy the goods, lots of those dollars end up in China.
- China’s economy grows.
- China loans those dollars back to us in U.S. debt.
- U.S. pays gobs of interest to China.
- China grows more.
- China builds up international prowess, armies, nukes, etc.
Can YOU speak Chinese? I can’t.