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Dave Lyon
 
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Default He said No to Walmart



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Larry,
/rant on/
I know I'm not having much effect, but down deep, I feel better about
it. I have to disagree that boycotting Wal-mart hurts the US job
market, as Wal-mart and their methods have shut down many US
companies, including Rubbermaid, and some TV plants. They have buying
power, which they choose to use for Chinese stuff, and the big shots
are simply lining their pockets with the savings (the stuff sells for
just enough less to get the majority of the market share). The
following is not accurate, but as an example, if Wally was buying a TV
made in the US for $125 from a US company and was selling it for $179,
then told the US company that they would only pay $75 for that TV or
they would simply go to China to get it, the US company can't sell
them to Wally for that - so Wally goes to China, buys the China junk
for $75, but *still* sells them for $179... extra lining for Wally's
pockets. Meanwhile, the US company goes out of business, thus a loss
of jobs. I know that I'm being an ass about this, but I simply won't
support Wally and couldn't wish more that a business such as them
would completely fold up, blow up, blow away, drown, burst into
flames, or whatever, just to eliminate this leech.
/rant off/ (and sorry).
Ken.


It's actually a little worse than you describe.

Walmart aproaches the US comany and signs a 1 year contract saying they'll
buy a huge number of items at a price that the US company can make a profit.
The company makes a huge capital investment to cover the surge in sales. The
next year, Walmart says lower your price to XXXX without regard to weather
that is resonable or not. If the US company does not comply, they cannot
cover the loans used for their capital investment, so they go under. Walmart
will then decide if they would like to have the product made in China, or
self label it. If the US company decides to meet Walmart's demands, they can
plan on the same thing happening the next year.