"With Walmart however its not just the employees they like to screw around,
its the small and medium businesses that are the suppliers for the company."

Walmart does not set out to screw anyone.  A modern day fallacy perpetrated
by statists in order to create a coorporate bogey man.


"What happens is that the contracts allow for a renegotiation every year.
Year 1 no problem, the supplier typically gives a reasonable price which
Walmart accepts. Year 2 Walmart comes back and tells the supplier to knock
5% off the price. If not Walmart will go overseas to a Chinese supplier who
can meet that price. That's not so bad so the supplier usually complies.
Unfortunately Walmart then does it on year 3 and 4. Quite rapidly the
supplier finds that his margin has disappeared and they either have to let
the Walmart contract go (which has its own problems) or they have to go
overseas themselves to meet the new price. In the end the supplier and the
people working for that supplier in the US lose out."


What your describing surely happens.  However you're blaming Walmart for the
suppliers' bad business models.  The manufacturer gets addicted to the
volume of sales and sucked into the trap of gross versus net.  They see a
large gross income and forget all about net income.

Walmart does not force anyone to reduce cost.  The supplier can refuse
Walmart's demand and hope that Walmart will continue to be a sales outlet or
the supplier can leave and sale their product somewhere else.  This is
exactly what Snapper lawn mowers did.

It is not Walmart's job to run their suppliers.  The suppliers make their
own decisions and have to live with the consequences.

The main legitimate complaint is that Walmart is mean.  They really don't
give a damn about anyone else but Walmart.  They don't go out of their way
to hurt people.  Likewise, they don't go out of their way to help people.
They look after themselves.  If some of their suppliers took this approach,
they might be able to make a profit and stop whining.

Walmart is a target of the statists around the country for many reasons,
many of them being complete BS.  The main reasons are its refusal to allowed
a unionized workforce and that it is profitable without government
intervention.

J

-

To that extent, as radical as I think people try to characterize the Warren
Court, it wasn’t that radical. It didn’t break free from the essential
constraints that were placed by the founding fathers in the Constitution, at
least as its been interpreted and Warren Court interpreted in the same way,
that generally the Constitution is a charter of negative liberties. Says
what the states can’t do to you. Says what the Federal government can’t do
to you, but doesn’t say what the Federal government or State government must
do on your behalf, and that hasn’t shifted and one of the, I think,
tragedies of the civil rights movement was, um, because the civil rights
movement became so court focused I think there was a tendency to lose track
of the political and community organizing and activities on the ground that
are able to put together the actual coalition of powers through which you
bring about redistributive change. - Barack O

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