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> it squeezes the wealth out of those companies and transfers it to the people who shop there That's very neat. But aren't the people who shop there themselves

by user24 13y ago

> it squeezes the wealth out of those companies and transfers it to the people who shop there That's very neat. But aren't the people who shop there themselves getting lower wages, so the purchase power remains the same as before? i.e. my grocery shop is 20% cheaper, but my wages are 20% lower.

dkrich 13y ago
No. Wal-Mart has distribution that makes the operations of most grocers look archaic. More man hours are devoted to managing their operations than putting a rover on fucking Mars. This makes them extraordinarily efficient. Things that don't sell are pushed out for things that do, giving people exactly what they want, when they want it. They also know that they only need to have, on average, four checkouts open from the hours of 8-6, Monday through Friday, so there is no inefficiency when it comes to staffing, either. Meanwhile at Mom and Pop's Five and Dime, inventory is brought in once a week on a truck, and if they got rid of cereal X and moved the milk over two aisles how much would their sales increase? Who the hell knows? They are just doing what has worked for the past 40 years. But it's okay, because shoppers in the area like them and because there isn't any meaningful competition, they can just use cost-based pricing to guarantee a satisfactory margin and keep themselves in business. Unfortunately in this scenario, local town inhabitants are paying for this inefficiency. When Wal-Mart moves in and gives the consumers more choice at lower prices, Wal-Mart robs Mom and Pop of their margin, keeps a little of it, and gives the rest to the consumers. Your wages aren't 20% lower just because Wal-Mart ironed out a huge producer surplus. You are wealthier because you can go to the mall and buy a quality shirt for $30 that was made for about two bucks whereas before you would have had to make your own shirt which might take you most of a day. This is how economic progression works. Better business practices make society wealthier through efficiency.
- user24 13y ago
  > Things that don't sell are pushed out for things that do, giving people exactly what they want Well, no. I can't find rabbit (meat, not pet) for love nor money. Because it "doesn't sell". Time was, the butcher would always have rabbits and if people didn't buy it they would go to his dogs. > there is no inefficiency when it comes to staffing, either. inefficiency, otherwise known as plenty of jobs. I'm seriously not convinced that the ideal society is the one that is most efficient. Wonderful things live in the obscure, inefficient corners of things.

by user24 13y ago

dkrich 13y ago

No. Wal-Mart has distribution that makes the operations of most grocers look archaic. More man hours are devoted to managing their operations than putting a rover on fucking Mars. This makes them extraordinarily efficient. Things that don't sell are pushed out for things that do, giving people exactly what they want, when they want it. They also know that they only need to have, on average, four checkouts open from the hours of 8-6, Monday through Friday, so there is no inefficiency when it comes to staffing, either. Meanwhile at Mom and Pop's Five and Dime, inventory is brought in once a week on a truck, and if they got rid of cereal X and moved the milk over two aisles how much would their sales increase? Who the hell knows? They are just doing what has worked for the past 40 years. But it's okay, because shoppers in the area like them and because there isn't any meaningful competition, they can just use cost-based pricing to guarantee a satisfactory margin and keep themselves in business. Unfortunately in this scenario, local town inhabitants are paying for this inefficiency. When Wal-Mart moves in and gives the consumers more choice at lower prices, Wal-Mart robs Mom and Pop of their margin, keeps a little of it, and gives the rest to the consumers. Your wages aren't 20% lower just because Wal-Mart ironed out a huge producer surplus. You are wealthier because you can go to the mall and buy a quality shirt for $30 that was made for about two bucks whereas before you would have had to make your own shirt which might take you most of a day. This is how economic progression works. Better business practices make society wealthier through efficiency.

user24 13y ago
> Things that don't sell are pushed out for things that do, giving people exactly what they want Well, no. I can't find rabbit (meat, not pet) for love nor money. Because it "doesn't sell". Time was, the butcher would always have rabbits and if people didn't buy it they would go to his dogs. > there is no inefficiency when it comes to staffing, either. inefficiency, otherwise known as plenty of jobs. I'm seriously not convinced that the ideal society is the one that is most efficient. Wonderful things live in the obscure, inefficient corners of things.