I 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.
