Wal-Mart lowers costs at a price: studies - Mercedes-Benz Forum

Reply
 
LinkBack Thread Tools Display Modes
post #1 of 30 (permalink) Old 11-04-2005, 12:53 PM Thread Starter
BenzWorld Elite
 
firstmb's Avatar
 
Date registered: Jan 2005
Vehicle: 2006 ML350
Location: Chicago, IL
Posts: 1,434
Mentioned: 0 Post(s)
Quoted: 0 Post(s)
(Thread Starter)
Wal-Mart lowers costs at a price: studies

WASHINGTON (Reuters) - Wal-Mart Stores Inc. (NYSE:WMT - news) lowers consumer costs and adds jobs but has also led to a decline in wages and an increase in the number of people relying on government aid for health care, studies released on Friday show.

At a conference sponsored by Wal-Mart to examine its impact on the U.S. economy, researchers found that the world's biggest retailer accounted for some 210,000 net jobs last year while driving nominal wages down 2.2 percent.

The world's biggest retailer also lowered consumer prices by 3.1 percent, and real disposable income was 0.9 percent higher than it would have been in a world without Wal-Mart, researchers at Global Insight concluded.

The one-day event comes as rapidly expanding Wal-Mart tries to counter increasingly vocal critics who contend that the retailer drives competitors out of business and pays poverty-level wages that push employees to seek government aid.

Wal-Mart, which stressed that it made no attempt to influence the studies, gave Global Insight access to its wage data from October 2004 and sales and employment information dating back to the mid-1980s.

In addition to that study, the research firm also vetted papers from other researchers and accepted nine, some of which were far more critical. One found that Wal-Mart stores increase Medicaid spending, while another showed that the retailer actually reduced employment in the retail sector.

"When Wal-Mart enters a market, we compete with some businesses, which can result in job losses," Tom Schoewe, Wal-Mart's chief financial officer, said in a statement.

"But we expand opportunities for many other businesses, which results in job growth. Overall, Wal-Mart's economic impact on communities is a big net positive," he said.

Schoewe was scheduled to speak at the conference here but had to cancel at the last minute for an undisclosed reason.

OPPONENTS WEIGH IN

The retailer accounts for just under 1 percent of the U.S. work force and has become a lightning rod for those who contend that its devotion to low prices ends up hurting the economy as profit-pinched suppliers shift jobs overseas to meet Wal-Mart's rigorous pricing requirements.

The conference did not examine how Wal-Mart's suppliers affect the economy, however -- an omission that some participants said made the studies less useful.

One of Wal-Mart's most aggressive critics -- Wake-Up Wal-Mart, a union-funded group that has pressured Wal-Mart to improve wages and benefits -- held a news conference at the same hotel as Wal-Mart's event to announce a new national association for Wal-Mart workers.

The group said the association would "help empower Wal-Mart workers to join together in order to improve their working conditions, their lives, and change Wal-Mart into a more responsible and moral corporation."

Wake-Up Wal-Mart was not invited to attend the Wal-Mart event, which was restricted to a few dozen journalists along with academics and economists.

Wal-Mart has stepped up its public relations campaign in the hope of countering such criticism, which has become a bigger issue as the retailer faces increasing opposition to its efforts to expand into major urban areas.

Friday's event offered ammunition both to Wal-Mart and its critics.

Global Insight estimated that Wal-Mart's low prices saved consumers $263 billion in 2004, or about $895 per person. But other studies suggested those savings came at a cost.

Michael Hicks, a professor at the Air Force Institute of Technology and Marshall University, studied Wal-Mart's economic impact in Ohio from 1985 through 2003 and found Medicaid spending grew, amounting to about 16 additional cases per county attributable to a single Wal-Mart store.

A study by researchers at the Public Policy Institute of California found that Wal-Mart stores reduced retail sector employment by 2-4 percent. But they also found that Wal-Mart lowered prices, clouding the politically charged question of whether Wal-Mart is actually good or bad for the economy.

"The evidence is, on balance, more consistent with the claims of critics of Wal-Mart, although questions remain," the researchers concluded.


Thanks, D.
________________________________________________


2006 ML 350 - Black, Appearance Package, Navigation System, Entertainment Package, Sunroof Package, Heated Seats, IPod Integration
firstmb is offline  
Sponsored Links
Advertisement
 
post #2 of 30 (permalink) Old 11-04-2005, 05:06 PM
BenzWorld Elite
 
iNeon's Avatar
 
Date registered: Jan 2005
Vehicle: 2008 PT, 1998 neon--1965 VW 1200
Location: Birmingham, Alabama
Posts: 2,533
Mentioned: 0 Post(s)
Quoted: 0 Post(s)
Send a message via AIM to iNeon Send a message via MSN to iNeon Send a message via Yahoo to iNeon
RE: Wal-Mart lowers costs at a price: studies

my ex brother in law is evidence of this.

he worked at the steel mill my father works at prior and made 35k plus a very nice benefits package. my sister was not allowed to work because she had two small children and he was one of *those* husbands.

he ran around on her and left her with the two children and no income, only to come back 3 months later, now a wal mart employee.

after 9 months he divorced her because she enrolled in college to secure a better future for her family.

last month they finally took the custody case to court after a year of bickering back and forth and his child support payment is 425 a month for 2 children(8 and 5) *half* of his income.

i am paraphrasing, but...

Judge:
your child support payment will be 425 per month.

Retard:
but that is half my income! why do i have to pay so much when she makes more than i do?!

My Sister: [:D]

This signature removed to protect the innocent.
iNeon is offline  
post #3 of 30 (permalink) Old 11-05-2005, 03:16 AM
BenzWorld Veteran
 
Date registered: Sep 2004
Vehicle: 1982 300SD
Location: Bel AIr, MD
Posts: 692
Mentioned: 0 Post(s)
Quoted: 0 Post(s)
RE: Wal-Mart lowers costs at a price: studies

I fail to understand the continual whinning about WalMart.
Its a free country; If you don't want to shop there, don't shop there. But stop telling everyone else what they should do. If WalMart is evil, the market place will punish them.
It seems as if those who are opposed to WalMart have the mentality that every thing runs better when THE STATE ( or themselves) runs everything and makes the decisions for everyone else.
From Gigi, " Live and let live, Like and let like....
Your business is your business and my business is mine"
(I left out a few lines but you get the idea)
MS Fowler is offline  
post #4 of 30 (permalink) Old 11-05-2005, 07:16 AM
worst mod in BW history
 
ThrillKill's Avatar
 
Date registered: Apr 2005
Vehicle: ML CLK Iridescent Hyundai Accent lol,GoPed Freightshaker & Volvo semi's, c'mawn?
Location: Chicago
Posts: 27,762
Mentioned: 0 Post(s)
Quoted: 4 Post(s)
Lifetime Premium Member
RE: Wal-Mart lowers costs at a price: studies

Quote:
MS Fowler - 11/5/2005 4:16 AM

I fail to understand the continual whinning about WalMart.
Its a free country; If you don't want to shop there, don't shop there. But stop telling everyone else what they should do. If WalMart is evil, the market place will punish them.
It seems as if those who are opposed to WalMart have the mentality that every thing runs better when THE STATE ( or themselves) runs everything and makes the decisions for everyone else.
From Gigi, " Live and let live, Like and let like....
Your business is your business and my business is mine"
(I left out a few lines but you get the idea)
Many smaller communities have very little choice due to Walmarts unscrupulous practice of running out the little guys by dominating the area with multiple stores, then closing all but 1 when the moms & pops fold and go away.

ThrillKill is offline  
post #5 of 30 (permalink) Old 11-05-2005, 07:44 AM
BenzWorld Elite
 
Jillian80's Avatar
 
Date registered: Dec 2004
Vehicle: DeLorean DMC-12
Location: Birmingham, AL
Posts: 5,180
Mentioned: 0 Post(s)
Quoted: 7 Post(s)
RE: Wal-Mart lowers costs at a price: studies

Wal-Mart is truly an evil empire. They are the largest employer in the US behind the government and they pay some of the lowest wages. Their health insurance is laughable, passing on most of the premiums to the employee. In fact, most Wal-Mart employees don't even get the insurance because they can't afford it. And, oh yeah, has everyone forgotten the lawsuits in the previous years claiming that Wal-Mart managers screwed their employees out of overtime pay? Or that equally (or more) qualified women are regularly passed over for management positions in favor of a male?
It's very easy to say 'Just don't shop there', but like TK pointed out, sometimes they are the only game in town, having already wiped out the small business competition.
Jillian80 is offline  
post #6 of 30 (permalink) Old 11-05-2005, 09:12 AM
BenzWorld Elite
 
iNeon's Avatar
 
Date registered: Jan 2005
Vehicle: 2008 PT, 1998 neon--1965 VW 1200
Location: Birmingham, Alabama
Posts: 2,533
Mentioned: 0 Post(s)
Quoted: 0 Post(s)
Send a message via AIM to iNeon Send a message via MSN to iNeon Send a message via Yahoo to iNeon
RE: Wal-Mart lowers costs at a price: studies

my sisters story is likely the same as those of 98% of wal mart employees families or those depending on their ex-husbands to actually help support their children(healthcare included)

msfowler-- i do not know if you realize this or not, but my sister cannot make her ex husband get a different job. she does make more than he does, but only margionally(she is a DCX employee) more and to add her children to his insurance is terribly expensive.

to add the children to her insurance is 2/3 of the wal mart cost, but her wal mart employee of a husband cannot afford to even pay half of the lowered DCX employee insurance plan and she cannot afford to cover that expense alone.

it is state ordered that the children be insured, and just a good idea anyway, so what do they do? they depend on the half assed public healthcare system because two work-a-day people cannot afford health insurance!

this is less about wal marts high priced insurance(this is most likely due to the obscene number of lawsuits against large corporations--"hey look, a wet spot on the floor with no sign...") and more about their poverty-level wages. noone can afford healthcare, or even a comfortable home on 7.50 an hour.

This signature removed to protect the innocent.
iNeon is offline  
post #7 of 30 (permalink) Old 11-05-2005, 01:06 PM
BenzWorld Veteran
 
Date registered: Sep 2004
Vehicle: 1982 300SD
Location: Bel AIr, MD
Posts: 692
Mentioned: 0 Post(s)
Quoted: 0 Post(s)
RE: Wal-Mart lowers costs at a price: studies

We live in a world economy. The manufacturing jobs have gone overseas becasue they wages are lower there. Service industry, and retail are growth areas. Sorry; thats the reality of it.
Do you want high tariffs on imports? All that would do is force consumers to pay higher prices.
Supply and demand. Its an old game. Ignore the rules if you wish, but don't complain about results.
If WalMart gets a bad name form disreputable practices, it will affect their bottom line. But will that help anyone?
Or is this simple sahattenfreud. ( Enjoying someone else's pain) How does that benefit anyone.
MS Fowler is offline  
post #8 of 30 (permalink) Old 11-05-2005, 01:19 PM
worst mod in BW history
 
ThrillKill's Avatar
 
Date registered: Apr 2005
Vehicle: ML CLK Iridescent Hyundai Accent lol,GoPed Freightshaker & Volvo semi's, c'mawn?
Location: Chicago
Posts: 27,762
Mentioned: 0 Post(s)
Quoted: 4 Post(s)
Lifetime Premium Member
RE: Wal-Mart lowers costs at a price: studies

Firstly, the only reason I know what Schattenfreude means is because there is a horribly unfunny show on public radio in town here that goes by that name. One of those shows that I guess if you’re hip, you get it. Well, I don't get it.
I'll admit that Wal-Mart’s prices are impossible to beat but have chosen not to shop there. My decision is not so much based on my sense of ethics, but rather my revulsion of witnessing 19 year old mothers beating on their seven children for various toy begging infractions. I'm not proud of my boorishness.

ThrillKill is offline  
post #9 of 30 (permalink) Old 11-06-2005, 11:58 AM Thread Starter
BenzWorld Elite
 
firstmb's Avatar
 
Date registered: Jan 2005
Vehicle: 2006 ML350
Location: Chicago, IL
Posts: 1,434
Mentioned: 0 Post(s)
Quoted: 0 Post(s)
(Thread Starter)
Wal-Mart pledges greater transparency

Look whos talking....

__________________________________________________ ____


Retailer promises to make more information available to the public in the face of growing criticism.


WASHINGTON (Reuters) - Long-secretive Wal-Mart Stores Inc. vowed Friday to share more of its proprietary data and encouraged researchers to continue studying its impact on the U.S. economy.

"We're trying to be more transparent," Ray Bracy, Wal-Mart's (Research) vice president of corporate affairs, said at the conclusion of a day-long conference examining the economic influence of the world's biggest retailer.

Bracy said Wal-Mart will soon release more data on its Web site but declined to say what sort of information would be included.

The Bentonville, Arkansas-based retailer has a reputation for guarding its data so zealously that even its suppliers are reluctant to speak to the media about doing business with the company.

But Wal-Mart has promised to change its ways as it faces increasing opposition from labor groups, environmentalists and others who accuse the company of paying poor wages and benefits, gobbling up green space and pressuring suppliers to lower prices.

At Friday's conference, researchers presented 10 papers that concluded Wal-Mart has lowered consumer prices, but also driven down wages and pushed more employees onto government aid programs.

"They are to be commended for presenting negative research," said Tracy Sefl, spokeswoman for Wal-Mart Watch, one of several groups that have been pushing Wal-Mart to improve wages and benefits.

"But what it comes down to is, will they act on any of the studies that show they have negative effects on a community?" she said in a statement.

Bracy said the retailer learned from the presentations, but did not yet know what it would do with the information. He said the company encouraged researchers to come forward with additional study ideas.

"We are very interested in where the gaps in understanding Wal-Mart might be," he said. "We are indeed committed to studying this more."


Thanks, D.
________________________________________________


2006 ML 350 - Black, Appearance Package, Navigation System, Entertainment Package, Sunroof Package, Heated Seats, IPod Integration
firstmb is offline  
post #10 of 30 (permalink) Old 11-06-2005, 12:20 PM
worst mod in BW history
 
ThrillKill's Avatar
 
Date registered: Apr 2005
Vehicle: ML CLK Iridescent Hyundai Accent lol,GoPed Freightshaker & Volvo semi's, c'mawn?
Location: Chicago
Posts: 27,762
Mentioned: 0 Post(s)
Quoted: 4 Post(s)
Lifetime Premium Member
RE: Wal-Mart lowers costs at a price: studies

That must have been the first strategic assault to come out of their new "War Room". Operation Bullshit The Public.

ThrillKill is offline  
Sponsored Links
Advertisement
 
Reply

  Mercedes-Benz Forum > General Mercedes-Benz Forums > Off-Topic

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the Mercedes-Benz Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in











  • Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
     
    Thread Tools
    Show Printable Version Show Printable Version
    Email this Page Email this Page
    Display Modes
    Linear Mode Linear Mode



    Posting Rules  
    You may post new threads
    You may post replies
    You may not post attachments
    You may not edit your posts

    BB code is On
    Smilies are On
    [IMG] code is On
    HTML code is Off
    Trackbacks are On
    Pingbacks are On
    Refbacks are On

     

    Title goes here

    close
    video goes here
    description goes here. Read Full Story
    For the best viewing experience please update your browser to Google Chrome