Penn and Teller: Bullshit! Wal-Mart
April 5, 2007 – 10:14 pmI have to admit, I’m a huge fan of Penn and Teller. When I heard that they were going to be covering Wal-Mart on an upcoming episode of Bullshit I was extremely excited. Like many small and medium size towns across the country, Wal-Mart hysteria has come to my home town of Longmont, Colorado and I was in the front lines of the debate.
Back in 2003 I had decided to run for City Council here in Longmont, and at that time Longmont was looking to annex a plot of land right outside of town by request of the Wal-Mart corporation. The plan was to build a new Super Wal-Mart store on the lot, and the city wanted to get the tax revenue. Typical to these decisions, the public outcry was immense. The anti Wal-Mart groups arranged speakers from all across the country to come and petition our City Council against the annexation. Of course, in the end cooler heads prevailed and the City Council voted to annex the land, and now we have a brand new Super Wal-Mart (to complement the smaller Wal-Mart across town).
Penn and Teller did an okay job in this episode, I’m just a bit disappointed that it didn’t go into more detail around the pure capitalistic nature of Wal-Mart, and really get down into the philosophy behind it. As anyone who knows me can attest, I’m a hardcore Libertarian. I live, eat, and breath free market capitalism. Nothing gets me more excited than seeing it in action, and nothing pisses me off more than special interest groups with agendas trying to stop it.
You see, Wal-Mart isn’t evil, capitalism isn’t evil, outsourcing and sweat shops arent’ even evil. They are all the natural product of a free market doing what it does best. Wal-Mart is one of the most amazing American success stories ever. A company that was able to find efficiencies in everything they do. Reinvest their profit into smart growth, cut costs where they can, negotiate bulk buying deals with manufacturers. There is a reason why Wal-Mart is the number one retailer in the United States, it is because they are the best at doing what they do, selling us household items at cheap prices. Wal-Mart isn’t here to put small business out of business. If that is a by-product of giving the consumer choice, then that is the essence of the free market.
What is evil is groups that preach the “social good”. Perhaps this is because I just finished reading it, but I’m reminded of Atlas Shrugged by Ayn Rand. The world is so concerned with the social welfare of the disadvantaged, the poor, the needy, that they “loot” from those who are productive members of society to give to the unfortunate. The same thing is happening with these anti Wal-Mart groups. They are going around spouting about the evils of Wal-Mart, using the plight of the common man as their evidence. Their motive may be well placed, but the outcome of such actions will eventually mean that Wal-Mart won’t be able to open new stores. They won’t want to deal with the headache and the legal loopholes that are put in place against them. Like the example Penn and Teller gave in Chicago requiring Wal-Mart to have a higher minimum wage than other retailers (Which gets me on an entire different minimum wage tangent, which I will save for a future post). The hurdles they will encounter will be so high that it will impact the profitability of a given store, and then they won’t have the justification to build it. What happens then? Who really suffers? Is it Wal-Mart, or is it the common man that now has to pay more for his television set at the local electronics store? Or is it the unemployed mother who still can’t find a job because nobody will hire her? Maybe it is the city who now has less sales tax because their residents are driving to the next town over to shop at Wal-Mart?
One of the great things about this country is that not only do we get to vote on election day. We get to vote every time we go to the store. Consumers vote with their dollars. They are saying that they want a higher quality of living for less money. They are saying that Wal-Mart offers them what they want at the best price. If the established businesses are adversely affected by the opening of a new Wal-Mart then that is the product of the kind of change the market is dictating. To survive, the established businesses must learn to adapt to the changing economy. People want convenience and they are casting their ballot loudly and clearly with every dollar they spend at these “big box” stores.
16 Responses to “Penn and Teller: Bullshit! Wal-Mart”
How many Longmont-based stores did you annex space for so they could build facilities that go through the building commission like goose shit through a tin horn? How may local store owners did you give tax incentives to so they would do business there? How many other business did the town agree to improve the roads to support the increase in traffic? Walmart or Target (yes the City took it in the ass from them too) wants a new store and the cities bend over.
I am a huge fan of Penn and Teller’s show and I am disappointed that they didn’t mention the government subsidies of Wal-Mart that give them an unfair competitive advantage, which should be the antithesis of anyone claiming to be a libertarian. Walmart isn’t evil, but it certainly competes unfairly when it pressures governments into paying it to come to their town, and that’s not capitalism or libertarianism. I don’t have a problem with Walmart paying low wages and offering low prices but do they really need my tax dollars too?
By Dave on Apr 16, 2007
Wall Mart is a fucking, dirty and, yes sure, evil thing. They are not evil because they selling poor things to, it´s my opinion,
high prices. They are evil because they are forcing their employees to be their fucking slaves. Wal- Mart isn´t good for the
U.S.A. and it isn´t good for germany and europe, it isn´t neither needed for nothing. Fuck Wal- Mart, fuck the Capitalism-
System and fuck Patriotism. Sometimes you American people just amaze me in your views.
Bye and sorry for my Bad English.
By Sven Knapp on May 22, 2007
I watched the Penn and Teller special regarding Wal-Mart. I agree that Penn and Teller did just an okay job in this episode. I was alsoa bit disappointed that it didn’t go into more detail around the pure capitalistic nature of Wal-Mart, and really get down into the philosophy behind it. Wal-Mart is always accused of putting every small business guy out of business, but the hard cold facts are (and Penn and Teller illustrated this perfectly in the town that was dying) that if the small guy wants to survive, he/she must adapt. I have a friend who lived in northern Colorado, tiny town, who opened up a couple of coffee shops inside of Wal-Mart (Kicks Coffee I think) and I thought wow, Wal-mart is actually giving the small guy a shot. I’ve seen where they’ve done that on an episode of CNN Age of Wal-Mart. I know Kicks Coffee was a tough deal to do and the greeting card was difficult but hey, who said business was supposed to be a walk in the park? So, the bottom line is that Sam Walton was an entrepreneur just like anyone else. His company grew and grew…and what they company he built is supposed to stop growing and play fair for the little guy? I don’t think so. What, if my friend’s Kicks Coffee became the biggest coffee cafe would he come under attack also? Face it folks, whether you’re doing business with Wal-Mart, Target, Home Depot or any other big box retailer, you’d better be ready to fight for your market share.
By Josh Jordan on Jun 27, 2007
Libertarian supports cheap exploitive Chinese Communist labor practices, film at 11.
Reminds me of that picture of the president’s grandfather posing with Adolph Hitler. Ask yourself how you’d look standing next to Mao Tse Tung in a nice glossy Wal-Mart print, also available on picture CD.
By Bro B. on Jul 14, 2007
To the Josh dude. Man, you gotta be kidding me. Sounds like your defending Wal-Mart over your friend at http://www.kickscoffee.com. Let’s get something straight, exploiting cheap Chinese labor is not the american way. We abolished slavery a long time ago, so since big businesses can’t do it in the U.S., they move the slavery overseas. It’s that simple. Kicks Coffee Cafe or not, wake the @#?!!! up dude.
By Cool D on Aug 11, 2007
Cool D and Me So Thorny I didn’t realize my comment was going to be analzyed like it was. So let me elaborate. I agree with you both about the Chinese labor which for me is another issue altogether. So, I believe that companies must be able to adapt in order to compete even with large companies. I didn’t want to get into my Wal-Mart bashing mode, primarily because I could write a book about their tactics as they are nasty. So I do apologize if I sound like a Wal-Mart supporter because THAT I am certainly not. Upon further review of my earlier post, I would have positioned it differently. And yes, I was in support of my friend at Kicks Coffee as he too was on the receiving end of Wal-Mart’s nasty side, even though he had tons of great press coverage and a great business. So, add me to your list of two thumbs down on Wal-Mart.
By Josh Jordan on Aug 30, 2007
The thing I find most telling is that the other big retailers never seem to get mentioned. You would think that if Wal Mart were so evil that you would see a lot of comparisons between Wal Mart and Target or K Mart. The truth is there is no difference in how these companies operate. The people that started the anti-Wal Mart hysteria did so because Wal Mart starting opening Super Wal Marts and did not try to get the grocery workers to join a union. Try finding out what organization rents office space to wakeupwalmart.com.
As for me I like being able to buy good products at a good price. And if Wal Mart is the best proce I will shop there otherwise I will look around.
By Jim B. on Oct 27, 2007
Are you kidding me? Outsourcing and sweatshops are good things? Tainted lead products and poisoned pet food is good too huh? Buying from a communist country who doesn’t give a rat’s ass about it’s own people, the Americans who buy their crap or the environment in general is capitalism at it’s best. How are people supposed to pay for these “cheap” products if the jobs that were here are now outsourced to these great models to capitalism. You self righteous sycophant please quit your councilman kick back job and please move to China to work at the sweatshop of your choice(well, the Chinese Communist government’s choice). Tainted half assed made products sold back to a country that won’t deal with Cuba because their leader is a communist is the true nature of why the rest of the world is in disgust with this country. Hipocrites! Greed for the fortunate share holders at the expense of everyone else that actually has to work is neither success nor good for anyone but a small few. Ask Califoria or the workers how wonderful of a corporation Walmart is. You don’t practice what you preach How is getting rid of manufacturing job that actually pay living wages a good thing?
By Clueless in America on Jan 11, 2008
If Wal-Mart had to depend only on high-cost American suppliers, it never would have grown the way it has and its sales would be far less than they are. Yet critcs always imply that somehow Wal-Mart could have done things differently, kept more production and jobs in America, without paying a cost. No alternative scenario is ever presented.
Furthermore, the implication that Chinese “sweatshops” are somehow unfair to the Chinese worker shows ignorance. Many workers in third-world sweatshops have left even harder, lower-paying jobs in agriculture to move to garment factories. Moreover, sweatshops are a normal step in economic development. Singapore, Malaysia, South Korea, and Hong Kong all had sweatshop jobs thirty years ago. They don’t now because workers in those countries have acquired skills and employers have accumulated capital. That’s what will happen in Honduras, Nicaragua, China (seriously, watch for China to kick all other asses very soon…they’re the next super power) and other poor countries—if we only let it.
Moving on, the main beneficiaries of Wal-Mart’s low-price policy are the poor, who can now afford products that would be out of their reach if not for Wal-Mart, improving their lives and raising their standard of living.
Wal-Mart, all by itself, was responsible for a significant amount of the productivity we have seen in this country over the last twenty years. In a 2001 report, the McKinsey Global Institute, a respected think tank, concluded that Wal-Mart’s managerial innovations had increased overall productivity by more than all the investments in computers and information technology of recent years:
* Wal-Mart’s innovations include large-scale (big box) stores, economies of scale in warehouse logistics and purchasing, electronic data interchange, and wireless barcode scanning.
* These gave Wal-Mart a 48 percent productivity advantage over its competitors, forcing them to innovate as well, thus pushing up their productivity.
* The McKinsey study found that productivity improvements in wholesale and retail trade alone accounted over half of the increase in national productivity between 1995 and 1999.
A 2004 study from the prestigious National Bureau of Economic Research found that Wal-Mart has a substantial effect on reducing the rate of inflation. For example:
* It typically sells food for 15 percent to 25 percent less than competing supermarkets. Interestingly, this effect is not captured in official government data.
* Fully accounting for it would reduce the published inflation rate by as much as 0.42 percentage points or 15 percent per year.
Ignoring these beneficial macroeconomic effects, critics focus almost exclusively on the loss of jobs allegedly caused by Wal-Mart. However, academic research by economist Emek Basker of the University of Missouri contradicts this point, finding that Wal-Mart permanently raises local employment.
Suck on that.
By Bartlett Peach on Jan 16, 2008
I do not understand the glorification of small business jobs. I worked at several small businesses when I was younger. I started at a training wage, less than minimum wage, and then moved up to minimum. Walmart came into town and actually paid a couple dollars higher.
As for the sweat shops, we seem to forget our own history and development. Sweat shops were common in the US. Simply stating that we should not buy from so called “sweat shops” is evil because without those jobs many in developing countries would have nothing. I have friends from China and my wife is from Thailand. Many of those manufacturing jobs are vastly better than working in a rice paddy. Ever worked in a rice paddy? Talk about back breaking. Of course, that is even if you can get a job at all. Many of these countries the average worker is making less than 50 dollars a month. So if you are going to complain, then you have to provide an alternative. In fact, go and try to implement your alternative rather than complaining. Walmart bashing helps no one (and I am not even a big fan of Walmart, like Penn I prefer Target).
By Mike on Feb 24, 2008
In my town, the new Wal-Mart is the one paying for road improvement and a shiny new protected intersection on what was once a dangerous piece of road. Sure, the shoppers are actually the ones paying for it, but they pay by choice, by shopping there. Sounds like the system is working.
By Chad LaFarge on Apr 2, 2008
First off i did work at wal mart and well…. i did not find it funny when they open this topic up. WAL MART DOES NOT and i repeat NOT PAY 10$ AN HR. to ANY EMPLOYTEE other than managers… and the golden question would be how many mangers in a store… a handfull…. 5 to 6 at best… how many employees???? now you ask well that would about about 200 per store and more…. and the ultimate question you dying to ask at this point how much do all the lower grade workers get paid… 6$ AN Hour….. NO RAISES no benmefits… nothing… ye si agree for those who say wal mart sucks… it does for a job and when someoen is gonan tell me on my off time,. my relaxation time in my night when im un winding that al mart.. the job that sucked balls in my opijon pays pretty well… well penn and Tell can take a flying F@@@ for all i care… there nto funyn and they think its funnhyot spread sh@t around as facts… maye if quit prouncing around like 2 fags at a boy geroge concert and got there facts straight thy woudl know such simple things…
By mike on May 5, 2008
Chad “LaFarge”, you should really stop your rambling. That is easily one of the worst comments I have ever read. With one quick pass I caught 19 mispelled words. It really doesn’t surprise me that you worked at Wal Mart, but instead of trying to downplay your “job”. If I were in your position, I would be grateful I even had a job. “P”enn (yes it’s a name which requires capitalization) and Tell”er” DO have their facts straight. If you don’t agree with what they have researched and proven, then I don’t understand why you even took the time to watch their program. Instead, maybe you should try watching Jerry Springer, it seems to me that it probably leans more towards your lifestyle.
By Loki on May 20, 2008
“Free market” does not include:
-sweatshops w/substandard working conditions
-poor pay
-urging most of your employees to go to Govt welfare systems for health,etc
-giving a company that clears billions in profit free land, tax incentives, new roads, etc
-not goving thes handouts to others equally.
Wal-mart is part of the fascist problem-a blending of Govt and business welfare. penn/Teller note the Movie on Walmart, high cost… is “socialist”, yet they are supporting a fascist system, in the end, same result-little businessman gets driven out and Govt and a few wealthy individuals profit. Most people that supprot this are oddly not the profit makers.
Also, as most Wal-Mart goods are made in Communist countries, who is really the socialist? the movie maker or the Wal-Mart enalblers?
You may want to eat/breath Christian Economics, which is neither “left” nor “right”, “capitalist”, no “socialist”, nor “fascist”.
By Chris Campbell on Jun 13, 2008
BTW-start with Belloc’s Restoration of Property, John Medaille’s book:
Vocation of Business: Social Justice in the Marketplace
Finally, anything by IHS Press
By Chris Campbell on Jun 13, 2008
Best analogy I think i ve ever seen( got it from someone commenting at the consumerist.com)
Walmart is China’s Trojan Horse to America
By T A Smith on Jun 24, 2008