Some more...........
WHAT’S CHANGED? I’m still as cash-strapped as ever, but, in the past decade, the world has changed, and so has Wal-Mart. For one thing, while Wal-Mart was spreading like kudzu across rural America, family farms were closing and small-town factories were moving to Mexico. As a result, Wal-Mart has become a primary employer in much of the country. And as cheap and convenient as it may be to shop at Wal-Mart, the chain is a terrible employer. The average pay at Wal-Mart for a 40-hour week would keep a family of four in poverty. And reality is worse than that since so many Wal-Mart workers are part-time. That’s by design because part-timers don’t qualify for benefits until they’ve worked two years.
Also, just as I was writing about Wal-Mart 12 years ago, the company and the country were turning a corner into the era of global free trade. For Wal-Mart, this shift also coincided with the death of the company’s founder and the severing of its corporate links to small-town culture and traditions. As the Frontline report showed in depressing detail, in the early 1990s, with growth at a plateau and stock value declining, Wal-Mart took down all those "Buy American" signs from its stores and got into bed with China.
Yep, China - the country with the slave labor camps and the compulsory abortions. That’s our Wal-Mart. The company even has a corporate office in the industrial center of Shenzhen, China, to maintain relations with its thousands of Chinese suppliers. And the Chinese workers feeding Wal-Mart’s money machine make 25 to 50 cents per hour.
Wal-Mart didn’t cause this situation, of course. It’s only following the logic of the free market. And so are we, as consumers, when we drool over those low prices. The problem is that the logic of the free market is suicidal. As Wal-Mart illustrates, a "low-price" economy inevitably becomes a "low-wage" economy. And when wages sink low enough, workers can no longer afford to buy anything, even at Wal-Mart prices, and the machine grinds to a halt. So far America has postponed that day with low interest rates, federal deficits, and staggering consumer debt, combined with rank exploitation of cheap foreign labor.
It will take a lot of time and struggle to reform the global marketplace around principles of workers’ rights (and environmental protection). But in the long run, that is the only way we can have a decent life for most Americans and real opportunities for the global poor.