STATEMENT OF PRINCIPLES
PEOPLE SHOULD BE: Free to Choose as Consumers as Workers as Suppliers
COMPETITION
Consumers best friend Workers best friend Not pro-Wal-Mart. Not pro-business. Pro Consumer.
Largest most prestigious econometric modeling firm in the world. THE ECONOMIC IMPACT OF WAL-MART Wal-Mart opened books on sales, employment, etc. 1985-2004.
Studies monitored and reviewed by economists from Brookings Instn. and American Enterprise Institute.
GLOBAL INSIGHT
Wal-Mart has been positive due to: lower consumer prices, due to real efficiency gains, not by lower wages.
more efficiencylower priceshigher real income
WAGES
Global Insight Wal-Mart BLS Avg 7 retail positions $9.17 $8.46 SD FT average $10.02 Global Insight - no evidence of belowmarket wages. WM provides health to FT & PT who choose to participate & pays 70% of premium.
Wal-Mart Effect
McKinsey Global Institute states:
More than half of the productivity acceleration in the retailing of general merchandise can be explained by only two syllables: Wal-Mart. Wal-Mart rivals (Target, K-Mart Sears) emulate highly productive processes. Competition from Wal-Mart makes its competitors better companies.
Lower Prices -$2 mil Grocery prices @ 10% lower in V More disp income in & more spending locally
Less Travel to Yankton, Sioux City, & Sioux FallsLower travel costs
CONCLUSION
If we could eliminate Wal-Mart from the economy we would: pay higher prices, be less productive, have a lower standard of living, poor & modest income hurt most.
THE END
INTERNATIONAL TRADE
Trade is a good thing. It raises standard of living in both countries. Trade does not destroy jobs, it changes composition of jobs.
PERCENT
-4
-8 80 82 84 86 88 90 92 94 96 98 00 02 04
NO RELATIONSHIP
Nonag Employment 140000 130000 120000 110000 100000 90000 80000
200 0 -200 -400 -600 -800 1980 1985 1990 1995 2000 2005 Trade Balance