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All Hail The Big Box
April 09, 2004
The crusade against Wal-Mart is misiniformed and doomed to fail, argues Steven Malanga in City Journal. The McKinsey consulting firm best summed up the cumulative impact of the company’s influence in a report entitled 'The Wal-Mart Effect,' which estimates that the retailer’s focus on low prices and its constant stream of money-saving innovations accounted for up to one-quarter of the entire U.S. economy’s prodigious productivity gains in the 1990s boom—when inflation held steady despite a soaring economy. Savvy investor Warren Buffett even declared that Wal-Mart—not Microsoft or some other technology company—has contributed more than any other business to the health of the U.S. economy. As a consumer, I want the best deals for our family. If I can find lemonade juice pouches, bottled spring water, child car seats, film, telephones and CD players for substantially less than the same items in a downtown or neighborhood store, I'm going to Wal-Mart, or Target. For the same reason, l regularly drive across the West Seattle Bridge to Beacon Hill and load up on fresh produce at McPherson's. I'm really happy for the unionized workers, with their great benefits, at my neighborhood grocery store. But I long ago tired of paying for their health care by purchasing overpriced strawberries. The accusation that Wal-Marts kill neighborhood and small town business districts is a total canard. These enterprise zones have to specialize and adapt to survive in today's regional economies, anyway. I don't expect to buy a DVD player, or even clothes in The Junction (West Seattle's central commercial hub). But the two pet shops, non-violent toy store, book and CD stores, fish market, health clubs, restaurants and varied small businesses there are thriving. A Ben and Jerry's is coming in soon. Hate their phony populism, love their ice cream. Posted by Matt Rosenberg at April 9, 2004 10:59 AM Trackback Pings TrackBack URL for this entry: Comments:
Well said. Creative destruction is the engine of growth. My grandfather ran a very small store in what is now Newcastle 40+ years ago. At that time, this was in the middle of the countryside. He died before the larger grocery stores (Safeway, Albertsons, etc.) offered larger selections and cheaper food prices and put almost all of these many stores out of business. He didn't have a right to continue to operate this small store and it would have surely closed had he lived for several more years. The handwriting was already on the wall since my grandmother didn't even attempt to sell the store. It was boarded up and remained closed for 30+ years until the property was developed with new housing. I would be hard pressed to argue the rise of Safeway then was wrong or bad. The same can be said of WalMart. After all, a business deserves to survive and prosper only when it offers services and goods it's consumers freely chose to purchase. Posted by: Gary B at April 9, 2004 04:48 PMMatt, that's a great line about Ben & Jerry's. I detest their politics, but I love the products (Chunky Monkey and on occassion Karamel Sutra). Similarly, I am not inclined to view the Moonies in a favorable light, but if they make good pistols (Kahr), as they are reputed to, I'll try one... eventually. May the best product win - that's the American way. Posted by: James Na at April 9, 2004 06:29 PMThe Unions: are the main agitators behind the anti-Wally World campaign. And Microsoft and Starbucks an any other non union business. Posted by: Roy Wa. at March 28, 2005 08:06 PMPost a comment
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