Dumping.

[cpk]

One question: Do you think the majority of small mom-and-pop businesses that Wal-Mart is displacing actually pay more than minimum wage? I have my doubts.

[Dan.]

[ QUOTE ]
One question: Do you think the majority of small mom-and-pop businesses that Wal-Mart is displacing actually pay more than minimum wage? I have my doubts.

[/ QUOTE ]

Why wouldn't they? If there are multiple mom and pop shops, then the businesses are forced to bid up wages to attract the best employees.

[Brainwalter]

[ QUOTE ]
[ QUOTE ]
One question: Do you think the majority of small mom-and-pop businesses that Wal-Mart is displacing actually pay more than minimum wage? I have my doubts.

[/ QUOTE ]

Why wouldn't they? If there are multiple mom and pop shops, then the businesses are forced to bid up wages to attract the best employees.

[/ QUOTE ]

And so is walmart.

[Dan.]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
One question: Do you think the majority of small mom-and-pop businesses that Wal-Mart is displacing actually pay more than minimum wage? I have my doubts.

[/ QUOTE ]

Why wouldn't they? If there are multiple mom and pop shops, then the businesses are forced to bid up wages to attract the best employees.

[/ QUOTE ]

And so is walmart.

[/ QUOTE ]

Not after walmart drives out the competition.

[zyqwert]

[ QUOTE ]
One question: Do you think the majority of small mom-and-pop businesses that Wal-Mart is displacing actually pay more than minimum wage? I have my doubts.

[/ QUOTE ]

It would make sense because the local business employees need more skills. WM has economies of scale; they pay smart guys to design efficient systems. WM can get value from the bottom of the labor pool that a local business can't.

[cpk]

I lived in a small town when I was a kid. Most unskilled jobs in the town were minimum wage--didn't matter whether it was the gas station or the grocery store or the restaurant. Wal-Mart actually paid higher than minimum (though not much), and as a result they were highly sought-after jobs.

I can sort of see your point, though. Not being familiar with small-scale retail operations, it seems as though you'd need things like buyers and stuff like that which are centralized in a place like Wal-Mart. OTOH, independent grocers join cooperatives (eg, IGA) where details like this can be managed.

[xorbie]

[ QUOTE ]
One question: Do you think the majority of small mom-and-pop businesses that Wal-Mart is displacing actually pay more than minimum wage? I have my doubts.

[/ QUOTE ]

Yes, fairly sure they do. I know Wal-Mart definitely pays less than other similiar chain stores/grocery stores.

edit: Some similiar stores. I don't have extensive stats in front of me.

[ianlippert]

[ QUOTE ]
Not after walmart drives out the competition.


[/ QUOTE ]

Driving out the competition doesnt change the demand there is for goods. the same amount of goods will probably take the same number of people to deliver them to the local economy. Whatever small amount of lost jobs there will be, will more than made up by the jobs that are created by all the extra money that people are saving. That money people are saving is going to go into other local businesses, other mom and pop stores that provide good that walmart doesnt.

Profits dont just get taken out of the economy. Profits get taken out of the economy in exact proportion to the goods that are coming into the economy. Its actually in greater proportion than under less efficient businesses since the goods are cheaper.

Its a pretty common economic fallacy to think that a more efficient way of doing things destroys jobs. Its kind of the inverse of the broken window fallacy. It might actually have a name, but I cant think of it right now. Anyone?

[Dan.]

[ QUOTE ]
[ QUOTE ]
Not after walmart drives out the competition.


[/ QUOTE ]

Driving out the competition doesnt change the demand there is for goods. the same amount of goods will probably take the same number of people to deliver them to the local economy. Whatever small amount of lost jobs there will be, will more than made up by the jobs that are created by all the extra money that people are saving. That money people are saving is going to go into other local businesses, other mom and pop stores that provide good that walmart doesnt.

Profits dont just get taken out of the economy. Profits get taken out of the economy in exact proportion to the goods that are coming into the economy. Its actually in greater proportion than under less efficient businesses since the goods are cheaper.

Its a pretty common economic fallacy to think that a more efficient way of doing things destroys jobs. Its kind of the inverse of the broken window fallacy. It might actually have a name, but I cant think of it right now. Anyone?

[/ QUOTE ]

I never once claimed any jobs were destroyed. If you would actually read my posts, I said that once the competition is eliminated, walmart has no need to raise its wages or pay more than minimum wage, if at all.

[Brainwalter]

Yes, once ALL competition is eliminated and Wal-Mart is the only place anyone can work. Can you name any localities like that?