Saturday

Who killed "Mom and Pop"?

I teach an introductory Economics course for a local community college in Indiana and I like to discuss Wal-Mart often. I personally choose not to shop at Wal-Mart for one particular reason, I don't like the service I get there. I tip my hat to Wal-Mart for the success it has built for itself over the years and the wealth it has created for shareholders and the "everyday low prices" it provides for us consumers.
Recently, Wal-Mart has become the target of corporate hating liberals in states like Massachusetts and Illinois. State legislation has been aimed at making Wal-Mart carry greater costs for health care expenses for its emplyees. Is this fair? I do not believe corporate success should equal government intervention. Besides, don't employees have the option of working elsewhere? "Not in our neighborhood", some people have said to me. "Wal-Mart has run every mom and pop store out of business", they continue. This is true, that an open Wal-Mart has forced many small sole proprietors to close shop. I do not blame Wal-Mart for this at all. We, as local consumers, have failed to provide support for "Mom and Pop". We have swarmed to the open doors of low prices at the expense of our neighborhood grocer, hardware, shoe shop, and pharmacist. We do benefit from having Wal-Mart in our town. We demand the convenience it provides. "We can buy everything at one store", a student said to me. Have our preferences won over our old obligations of supporting "Mom and Pop"? Wal-Mart positioned itself early to provide consumers the most product for the dollars we have available. Sam Walton was a genious at predicting what type of spenders Americans would become. We save nearly nothing, but we want to have everything. Wal-Mart is the pusher for our product addiction. Sorry Mom and Pop, until we change our habits you'll have to wait.

-Milt-

Comments:
Just found your blog-- I've enjoyed reading it.

In regards to Wal-Mart & health care -- I think it's a shame the way Wal-Mart gets away with treating their employees-- just to offer lower prices.

Having worked at a Kroger Pharmacy for almost 3 years, I've realized that its not just the Mom and Pop stores... Kroger provides decent wages and health insurance to all their employees... Wal-Mart should have to as well.

Anyways, enough of that -- enjoyed the blog, keep up the good work!

Cheers,

Anna
 
Interesting points. As a pure capitalist I cannot blame Wal Mart either. As your column so well put it, we as consumers decides who is the strongest animal of the retail world, not the animals themselves. I try NOT to shop at the big box stores if I can help it. But time being the precios commodity that it is, at times forces me to make that choice. The irony is that my sponsoring of places like wall mart lead to the possible monopoly of the market, which lead to no more competition, which lead to monopolies, which leads to anti-trust laws, which....... well you get the picture.
 
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