Tuesday, February 25, 2014

Walmart takes back America after wrecking it

Walmart was founded by Sam Walton, a smart, hard-working former Ben Franklin store franchisee who knew that through superior logistics, he could drive cost out of the system and offer goods a lower prices, thus helping people buy more of what they need.

A World War II veteran, Mr. Walton also made a concerted effort to offer American-made products in his stores, identifying domestic manufacturers who could deliver goods at or below the price of products that were made in Japan, then the worlds low-cost production center.

Somewhere along the way, Walmart went from focusing on selling low-cost American-made goods to the lowest cost products it could find no matter where they were made. This led U.S. manufacturers to move production to lower cost labor markets like Mexico, China, Indonesia and South Korea, which in turn led to the collapse of entire manufacturing sectors in the U.S. like textiles and electronics. Walmart's policies have also been a major contributing factor to wage stagnation to the point where good factory jobs: once a ticket to the middle class, now barely pay a living wage.

I'm not saying this migration of labor and stagnation of wages wouldn't have happened without Walmart, but their policies and practices certainly were a contributing factor to the pace of change.

That's why I find this new "Investing in American Jobs" ad campaign a little disingenuous.

I also find it ironic – and a little tone deaf – that the sound track for this ad, was outsourced to the Canadian band, Rush.

Other than that, this is a fine ad.

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