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Monday, February 07, 2011

The Wal-Mart Dilemna

There has been a lot of talk lately about Wal-Mart and the damage they do to a community when a new store is opened in a community. A lot of people criticize the retail giant for shutting down Mom-and-Pop stores, not paying fair wages and mistreating employees in other ways.

Wal-Mart's website boasted sales of $405 million in fiscal year 2010. For all of the complaints that seem to be lobbed against the store, there seem to be a lot of shoppers who either don't know about the allegations or simply don't care.

Why? Why do millions of people go into a store that may or may not use unethical business practices when it comes to fair wages or humane working conditions? The answer is simple: When people are shopping, they are looking for something they can afford. Not something that was made and sold by people who are treated fairly.

The past three years have been marred by economic turbulence. Many people, especially those in the financial sector have referred to 2000-2009 as "The Lost Decade". Many people have seen their life savings and retirement plans go up in smoke. People must work longer and put off that retirement because of the damage done to their 401k's.

Wal-mart knows this and uses it to their advantage. As much as people want to help the local store around the corner, why buy something for $5 when they know they can get it at Wal-Mart for $2.15?

It would be unfair to say it is only Wal-Mart who does this. Large-chain retailers have been doing this for years. It is bad for the local economy. Jobs are getting rubbed out and businesses are going under but millions of people are saving money everywhere.

Where are you going to go the next time you need bathroom tissue or a roll of tape? You know you will keep your money in the local economy if you head down to Joe's Local Store but you will keep your money in your own pocket if you are at Wal-Mart or want a little "Cheap Chic" at Target. You really want to do the right thing but can you afford to?

A very vicious circle is going to rear its ugly head before long. Large stores will continue to swallow smaller competitors and the business they continue to lose. People's chances for honest work and a fair wage will fade. Before long, employees will be forced to take jobs that will not pay them what they are worth or what they need to even get by. Customers looking to save a buck will groan about how hard it is to find good help.

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