9/13/2007

The Price of Low Prices

I like reading about this argument that globalization is bad. It makes me laugh. I personally love reaping the benefits of shopping at Walmart. The jobs being outsourced by factories in China are for unskilled labor. Writers of this argument never talk about foreign companies coming to us for consulting work, which pays big money. Our country, and economy, is advancing past our industrial revolution. Technology is our strength now and outsourcing factory jobs to countries entering their industrial revolutions is part of globalization. Some just need to open their eyes to this reality.

9 comments:

Dr. Tufte said...

By Jove I think you've got it!

Hailey said...

I agree! Everyone complains about Wal-Mart. However, you don't see Wal-Mart struggling for customers. I also found it interesting that it's not only the poor families or those in the low-income bracket that are shopping at Wal-Mart. The wealthy are there as well, seeing how great of a deal they can get on groceries and general hygiene needs.
This article also mentioned that Wal-Mart didn’t put up with unions, unless in was a country where it was required by law to support a union. I agree with Wal-Mart. Unions seem like such a hassle to deal with if you are a major corporation. Obviously people make enough money working there that they are not going next door to Taco Bell, and I think Wal-Mart has some excellent opportunities for advancement for those who deserve it or are qualified. When there is no one working at Wal-Mart because the pay is not high enough and the benefits are too expensive, then I think Wal-Mart should reevaluate their strategy, but until then it is only saving me more money at the chain known for the lowest price.

Sophie said...

Amen! I hate how every article about Wal-Mart acts like there is this bus that drives around the cities in America and forces at gun point consumers and employees to either shop or work at its stores. Sure the company makes mistakes, but, in general, Wal-Mart does a great job at providing products to consumers at discount prices and at providing good paying jobs for employees. Therefore, I think Wal-Mart should be left alone and just be allowed to keep doing the things that made it the largest, and most successful, retail discount store in the United States.

William said...

Dr. Tufte,
It seems so simple of a concept, yet so many Americans seem to not understand basic economics. Even educated people do not understand the concept of demand and supply. I think that every American should have to take some economic class in high school so that they can understand these basic principles.

Trinity said...

Dr. Tufte- I agree that globalization is good but I wonder if the author and these commentors still feel the same way when the U.S. is now losing high pay, high education jobs to other countries too. As the world becomes more global, top level jobs will go to people that are global as well. Are these people still going to support globalization when jobs they want are going to foreigners?

carter said...

Dr. Tufte agreed with this post and so do I. Globalization is economics at work. It is all about comparative advantage.

Jacques said...

Dr. Tufte would love this side of the globalization argument, but any well-thinking individual would if they were simply presented with a short lesson on the glories of free markets. I like saving money because this is really the same thing as having more income. Shop at Wal-Mart and get a raise, thank you very much.

Dr. Tufte said...

There is a (small) sub-field called "folk economics" about what beliefs people hold that are inconsistent with mainstream economics, and how they come to believe them.

AMIT said...

Nice explanation given by you.

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