alt Hacker Newswalmart solves a major logistical problem: provide government subsidized goods to low income neighborhoods. the government should like to give walmart money, as it is plausibly a cost-effective way to provide these goods to people who need them. the administrators of walmart are well rewarded for providing this public good.
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> Yes and do billion dollar corporations really need that much government subsidies? Turns out yes they do, but sure enjoy your plastic trinkets from China I guess. Hopefully you thank a tax payer that pays for the welfare and medicaid of those Walmart workers, and the local town for cheaper property taxes and utility rates at Walmart.
This is not the case.
Walmart doesn't have the lowest prices because they are efficient, yes conventional wisdom might dictate that but you are forgetting wholesalers exist from which conventional retailers buy from and the margin definitely tilts towards walmart but there was a time where they could easily compete against walmart and set their prices.
Now what's happening is that walmart has these special deals (in this case with pepsi) where pepsi would literally surveil all marts and see which is selling cheaper than walmart (FoodLion did that) and then what Pepsi did was cut off all the promotional money of FoodLion and increase their wholesaler prices.
Is this legal? Hell no. It's all completely illegal but the govt. stopped enforcing the law
Then when it was released by FTC, the whole document was almost redacted and Trump signed an executive order essentially trying to stop it from going out but some journalists dug/pressured for its release.
So walmart isn't the base because they are price competitive, hell-no. It's because they set the floor & have special deals with other companies to maintain that floor artificially.
Which actually leads to small retailers/chains shutting down because they can't compete on price and this essentially leads to a monopoly of walmart where it can dictate prices & increase them and the people are forced to STILL go to them.
And all of this while being immensely govt subsidized as you say too while paying their employees peanuts.
Actually Walmart when it was launched in germany was sued quite a lot for such practices that iirc they had to take an exit. No country wants a walmart because they know that they might use their american profits (which we discovered how come from shady practices themselves) and then use it to run marts at losses until the competition dies which is still immensely bad long term for the average consumer of whole world but particularly the americans in my opinion as all other govts are more protective of such industries for this good reason and walmart fails to measure up to those standards in other countries.
https://www.youtube.com/watch?v=odhVF_xLIQA : We Uncovered the Scheme Keeping Grocery Prices High [More Perfect Union]
A lot of my points were heavily influenced by this video so I would recommend you to watch it to help understand more as well about what I am talking.
The deception of walmart actually fools a lot of people but the economical margin is actually quite low. It's the artifical floor that they set which gets unnoticed by many and this is why other retailers aren't able to compete, all of which is highly illegal but once again, the govt. stopped enforcing this law.
The only thing Walmart solves is destroying local ecosystems both biological and human. Acting like the executives paying themselves exorbitant salaries is a virtue is frankly odd and deeply disgusting as a human being, I'm sure the lowly workers wished they could vote themselves higher salaries too.
Maybe if workplace democracy was enforced upon Walmart it would be an entirely different entity, likely for the better too.
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You can both be right. Walmart is a valuable corporation; there are useful idiots who choose not to see that. It’s also a profitable one, which means it doesn’t need subsidies; another set of useful idiots can’t seem to see that.