The Walmart Effect

I’ve written before about Walmart-as-an-object lesson. The last time I looked, the company was averaging profits of $15.5 billion dollars annually, the Walton family’s net worth was over $129 billion dollars, and the company was still declining to pay employees a living wage. Instead, it relies on taxpayer dollars to make up the difference between its workers’ paychecks and workers’ cost of living.

After all, when an employee must rely on food stamps or other safety-net benefits, taxpayers are paying a portion of that employee’s wages.

Walmart (including Sam’s Club) is the largest private employer in the country–and one of the largest recipients of corporate welfare. (Walmart employees receive an estimated $6.2 billion dollars in taxpayer-funded subsidies each year.)

Money not paid out in salary, of course, goes directly to the bottom line, so we taxpayers are also funding shareholders’ profits. 

All this is, as they say, old news–along with the recognition that Walmarts located on the outskirts of small towns have emptied out the retail centers of those communities.

Recently, however, research has added another layer to what I’ve come to see as the Walmart scam.

No corporation looms as large over the American economy as Walmart. It is both the country’s biggest private employer, known for low pay, and its biggest retailer, known for low prices. In that sense, its dominance represents the triumph of an idea that has guided much of American policy making over the past half century: that cheap consumer prices are the paramount metric of economic health, more important even than low unemployment and high wages. Indeed, Walmart’s many defenders argue that the company is a boon to poor and middle-class families, who save thousands of dollars every year shopping there.

Two new research papers challenge that view. Using creative new methods, they find that the costs Walmart imposes in the form of not only lower earnings but also higher unemployment in the wider community outweigh the savings it provides for shoppers. On net, they conclude, Walmart makes the places it operates in poorer than they would be if it had never shown up at all. Sometimes consumer prices are an incomplete, even misleading, signal of economic well-being.

As the article notes, it’s relatively simply to calculate cost savings for consumers, but those cost savings don’t represent a company’s total effect on a community.  When a new Walmart opens, consumers change their shopping habits, workers switch jobs, and competitors shift their strategies–or often, close. 

One research project found that In the 10 years after a Walmart Supercenter opened in a  community, “the average household in that community experienced a 6 percent decline in yearly income—equivalent to about $5,000 a year in 2024 dollars—compared with households that didn’t have a Walmart open near them. Low-income, young, and less-educated workers suffered the largest losses.”

In theory, however, those people could still be better off if the money that they saved by shopping at Walmart was greater than the hit to their incomes. According to a 2005 study commissioned by Walmart itself, for example, the store saves households an average of $3,100 a year in 2024 dollars. Many economists think that estimate is generous (which isn’t surprising, given who funded the study), but even if it were accurate, Parolin and his co-authors find that the savings would be dwarfed by the lost income. They calculate that poverty increases by about 8 percent in places where a Walmart opens relative to places without one even when factoring in the most optimistic cost-savings scenarios.

A second study found that the losses weren’t limited to workers in the retail sector. They affected every sector from manufacturing to agriculture. But why would this be?

When Walmart comes to town, it uses its low prices to undercut competitors and become the dominant player in a given area, forcing local mom-and-pop grocers and regional chains to slash their costs or go out of business altogether. As a result, the local farmers, bakers, and manufacturers that once sold their goods to those now-vanished retailers are gradually replaced by Walmart’s array of national and international suppliers. (By some estimates, the company has historically sourced 60 to 80 percent of its goods from China alone.) As a result, Wiltshire finds, five years after Walmart enters a given county, total employment falls by about 3 percent, with most of the decline concentrated in “goods-producing establishments.”

I wonder what will happen when Trump’s China tariffs force Walmart to raise prices…

For now, Walmart is a monopsony— a company that can pay low wages because workers have few alternatives. This helps explain why Walmart pays lower wages than competitors like Target and Costco.

In a properly functioning capitalist system, we taxpayers wouldn’t be subsidizing monopsonies.

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Can We Talk?

It’s a new year, and Americans need to talk. But communication is hard. It has always been hard, even between people who speak the same language.

It isn’t just the crazy, although in the era of Trump, crazy seems to dominate. A recent article in the Atlantic,  titled “Let’s Talk About Trump’s Gibberish,” noted the insane stuff that comes out of his mouth and then becomes subject to the media’s “sane-washing.”

For too long, Trump has gotten away with pretending that his emotional issues are just part of some offbeat New York charm or an expression of his enthusiasm for public performance. But Trump is obviously unfit—and something is profoundly wrong with a political environment in which he can now say almost anything, no matter how weird, and his comments will get a couple of days of coverage and then a shrug, as if to say: Another day, another Trump rant about sharks.

The article quoted one of Trump’s frequent departures from rationality. In a campaign speech, his digression focused on a fanciful encounter with a shark. “I say, ‘What would happen if the boat sank from its weight and you’re in the boat, and you have this tremendously powerful battery, and the battery’s now underwater, and there’s a shark that’s approximately 10 yards over there?’”This bizzare detour from the ostensible subject of the speech went on–and on– with Trump clarifying that–assuming he had his choice, he’d rather be zapped than eaten. 

Evidently, people who voted for Trump simply discount his looney-tunes digressions (along with yesterday’s list of appalling behaviors). More to the point, the proliferation of disinformation, distortion and click-bait has desensitized us to “communication” that ought to alarm us–or at least signal that the speaker is mentally ill.

What, if anything, can we do about an information environment rife with intentional lies and propaganda and the purposeful “flooding of the zone”? (I believe it was Hannah Arendt who observed that propaganda isn’t intended to make us believe X rather than Y–it’s meant to destroy our ability to believe anything.)

Countering the ocean of disinformation we swim in was the subject of a December article in Common Dreams.

It’s a crisis. America is now among 11 nations deemed most threatened by both mis-and disinformation.

Little wonder that almost 90% of us fear our country is on the “wrong track.” And, President-elect Trump has led the way with 492 suspect claims in just the first hundred days of his first presidency. Then, before the 2020 vote, in a single day he made 503 false or misleading claims. By term’s end he’d uttered 30,573 lies, reports The Washington Post.

Now, he is joined by his promoter Elon Musk who is flooding his own platform X with disinformation—for example, about the bipartisan end-of-year funding deal.

Irish philosopher Vittorio Bufacchi distinguishes between lies, which are about a particular event, and “post -truth,” which is a “shift to another reality” –one where facts simply don’t matter anymore. 

The article tackles the important question: what can we do to restore the centrality of fact to our discourse? 

One key will be more independent and public journalism, including PBS and NPR, driven not by narrow profit or partisan agendas. As local journalism—perhaps easiest to hold accountable—has suffered a sharp decline in the past decades, state and local governments can step up with financial support and incentives. Here, many peer nations can inspire us.

The article points to an experiment from New Zealand, which it calls a “unique approach.”

Since 1989, its Broadcast Standards Authority has offered an easily accessible, transparent online platform for any citizen to call out disinformation. The authority is tasked with investigating and requiring removal of what is both false and harmful material.

The BSA seems to have been both cautious and effective.

In the early years, complaints were upheld in 30% of cases. But by 2021-22, those upheld had shrunk to just under 5%. That’s a big change. And, a possible implication? Knowing one can be exposed for harmful lies can discourage perpetrators.

Such a mechanism would help the ordinary citizens who cannot afford the financial cost of a lawsuit for defamation, which is our (expensive) remedy for such harms. Requiring courses in media literacy in the schools is a longer-term but important effort.

The problem–as I have repeatedly noted–is our very human proclivity for confirmation bias. People who share Trump’s hatred for “others” and don’t want to believe he is unfit for public office will gravitate to sites that characterize his “shark” episodes as humor and his ugly attacks as “locker-room jokes.”

If “post truth” is “pre fascism,” as Timothy Snyder asserts, we’re in a lot of trouble.

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How Far We’ve Fallen…

During Jimmy Carter’s Presidency, I shared what was then a widespread opinion–that he wasn’t up to the job, that the country’s economic problems were a consequence of Presidential ineptitude. My evaluation was based on the sort of superficial knowledge and media coverage upon which most busy people rely (I was a newly-minted lawyer with three small children at home–four if you counted the husband I had at that time.)

I’ve since come to appreciate the considerable contributions Carter made both in office and after. His death has unleashed multiple reports of those contributions. The obituaries and commentaries have also focused–quite rightly–on the fact of his decency. In an age when the label “Christian” is dishonored daily by racists and White nationalists claiming the title, Carter’s life honored the term.

Whatever disagreements Americans might legitimately have with Carter’s Presidential performance or policy positions, it’s unbelievably depressing to compare his life–characterized by integrity, human kindness and concern for the common good–with that of the degenerate specimen we are about to inaugurate.

Recently, a reader shared with me a lengthy post he’d come across, responding to the question: why do liberals think Trump supporters are stupid? I’m reproducing it below.

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THE SERIOUS ANSWER: Here’s what the majority of anti-Trump voters honestly feel about Trump supporters en masse:

That when you saw a man who had owned a fraudulent University, intent on scamming poor people, you thought “Fine.” (https://www.usatoday.com/…/trump-university…/502387002/)

That when you saw a man who had made it his business practice to stiff his creditors, you said, “Okay.” (https://www.thedailybeast.com/trump-hotel-paid-millions…)

That when you heard him proudly brag about his own history of sexual abuse, you said, “No problem.” (https://abcnews.go.com/…/list-trumps-accusers…/story…)

That when he made up stories about seeing Muslim-Americans in the thousands cheering the destruction of the World Trade Center, you said, “Not an issue.” (https://www.washingtonpost.com/…/donald-trumps…/)

That when you saw him brag that he could shoot a man on Fifth Avenue and you wouldn’t care, you exclaimed, “He sure knows me.” (https://www.usatoday.com/…/president-donald…/4073405002/)

That when you heard him relating a story of an elderly guest of his country club, an 80-year old man, who fell off a stage and hit his head, to which Trump replied: “‘Oh my God, that’s disgusting, and I turned away. I couldn’t—you know, he was right in front of me, and I turned away. I didn’t want to touch him. He was bleeding all over the place. And I felt terrible, because it was a beautiful white marble floor, and now it had changed color. Became very red.” You said, “That’s cool!” (https://www.gq.com/story/donald-trump-howard-stern-story)

That when you saw him mock the disabled, you thought it was the funniest thing you ever saw. (https://www.nbcnews.com/…/donald-trump-criticized-after…)

That when you heard him brag that he doesn’t read books, you said, “Well, who has time?” (https://www.theatlantic.com/…/americas-first…/549794/)

That when the Central Park Five were compensated as innocent men convicted of a crime they didn’t commit, and he angrily said that they should still be in prison, you said, “That makes sense.” (https://www.usatoday.com/…/what-trump-has…/1501321001/)

That when you heard him tell his supporters to beat up protesters and that he would hire attorneys, you thought, “Yes!” (https://www.latimes.com/…/la-na-trump-campaign-protests…)

That when you heard him tell one rally to confiscate a man’s coat before throwing him out into the freezing cold, you said, “What a great guy!” (https://www.independent.co.uk/…/donald-trump-orders…)

That you have watched the parade of neo-Nazis and white supremacists with whom he curries favor, while refusing to condemn outright Nazis, and you have said, “Thumbs up!” (https://www.theatlantic.com/…/why-cant-trump…/567320/)

That you hear him unable to talk to foreign dignitaries without insulting their countries and demanding that they praise his electoral win, you said, “That’s the way I want my President to be.” (https://www.huffpost.com/…/trump-insult-foreign…)

That you have watched him remove expertise from all layers of government in favor of people who make money off of eliminating protections in the industries they’re supposed to be regulating and you have said, “What a genius!” (https://www.politico.com/…/138-trump-policy-changes…)

That you have heard him continue to profit from his businesses, in part by leveraging his position as President, to the point of overcharging the Secret Service for space in the properties he owns, and you have said, “That’s smart!” (https://www.usnews.com/…/how-is-donald-trump-profiting…)

That you have heard him say that it was difficult to help Puerto Rico because it was in the middle of water and you have said, “That makes sense.” (https://www.washingtonpost.com/…/the-very-big-ocean…/)

That you have seen him start fights with every country from Canada to New Zealand while praising Russia and quote, “falling in love” with the dictator of North Korea, and you have said, “That’s statesmanship!” (https://www.cnn.com/…/donald-trump-dictators…/index.html)

That Trump separated children from their families and put them in cages, managed to lose track of 1500 kids, has opened a tent city incarceration camp in the desert in Texas – he explains that they’re just “animals” – and you say, “Well, OK then.” (https://www.nbcnews.com/…/more-5-400-children-split…)

That you have witnessed all the thousand and one other manifestations of corruption and low moral character and outright animalistic rudeness and contempt for you, the working American voter, and you still show up grinning and wearing your MAGA hats and threatening to beat up anybody who says otherwise. (https://www.americanprogress.org/…/confronting-cost…/)

What you don’t get, Trump supporters, is that our succumbing to frustration and shaking our heads, thinking of you as stupid, may very well be wrong and unhelpful, but it’s also…hear me…charitable.

Because if you’re NOT stupid, we must turn to other explanations, and most of them are less flattering.

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We’ve descended a very long way from Jimmy Carter…..

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Let’s Call It What It Is

I have a number of kind, well-meaning, “Never Trump” friends who tell me I’m painting with too broad a brush when I characterize the MAGA movement as racist to its core. These nice people (granted, lots nicer than me) are loathe to attribute Trumpism simply to hatred of those “Others”–Blacks, Jews, Muslims, immigrants (ok, Brown immigrants–not those from Norway or Canada), LGBTQ+ folks, and those detested “libruls.”

Sorry, but after coming across a recent news item from the Guardian, I rest my case. The headline really tells the story: “Anti-woke’ dog food and pro-America lipstick: US sees rise in rightwing stores.”

Mammoth Nation and Public Square are among the most prominent in the movement, both offering an Amazon-esque service, but stocking only goods which they claim are made by companies which have “conservative values”. Mammoth Nation makes its values clear on the homepage of its website: “Join Mammoth Nation to fight against Radical Left agendas,” booms a message, with the company claiming to stock only “brands who align with your beliefs”.

“When all of this wokeness started to happen and cancel culture, and then you start to see these companies stand up and say, ‘We’re not supporting this conservative or this Christian value any more,’ and just really lines in sand were starting to get drawn,” Drew Berquist, the national spokesperson for Mammoth Nation, told The Need to Know Morning Show, a North Dakota-based rightwing radio show, in December.

“And a lot of people were trying to figure out: OK, well, who are the good companies? Who are the companies that share our values, that support our constitution, support our troops or, you know, our Christian values as a country.”

Evidently, the Right’s “Christian values” are limited to “anti-woke” commitments. PublicSquare – which touts itself as Amazon for the right wing– claims to list products from more than 70,000 businesses. Unlike Amazon, however, PublicSquare’s merchants tout their allegiance to Republican causes, including opposition to abortion and an ahistorical version of the Constitution.

Evidently, efforts by companies to embrace diversity and inclusiveness–Target carrying Pride merchandise, Bud Light collaborating with Dylan Mulvaney (a trans media personality) – enraged rightwing consumers, creating a market for companies like Mammoth Nation and PublicSquare.

The Daily Wire, a conservative news outlet, launched a range of razors in 2022, after the company’s CEO deemed a rival razor brand to have “canceled” conservatives. The publication has since branched out into chocolate, soap, floor cleaner and, earlier this year, “manly green vitamin capsules”.

“Do you want to buy your men’s health products from a company that partners with drag queens and supports radical organizations that push gender procedures on children?” the Daily Wire asked readers in an article announcing the multivitamin – which at their launch cost 10 times more than Centrum-branded multivitamins.

According to the Guardian, most of these efforts have thus far failed to show a profit.

What they have shown, however, is the real motivation behind right-wing attacks on “woke culture.” Not that anyone paying attention will be shocked, or even surprised.

The word “woke” originally meant “awareness”–awareness of social injustices. The term has been co-opted by the Right, and become shorthand for a raft of cultural changes that enrage MAGA folks: efforts to be inclusive, efforts to combat racism, applications of the Equal Protection clause of the Fourteenth Amendment, even mainstream Christian teachings about loving one’s neighbors and welcoming the stranger–in other words, for the America that a majority of citizens want to inhabit. “Woke” is thus the antithesis of White Christian male dominance and superiority, and a favorite epithet of a MAGA movement that is reactionary, racist and misogynistic.

My kinder and gentler friends insist that it is unfair to paint the entire MAGA movement as racist. I think the fairness of that accusation depends upon how one defines MAGA–whether it includes the small Elon Musk and Vivek Ramaswamy wing of the party. We are now seeing that it doesn’t (despite Musk’s own neo-Nazi sympathies), and I’m willing to concede that there is a faction of uber-wealthy “bros”–mostly Silicon Valley techies– whose motives for supporting a mentally-ill felon are purely financial and transactional. (The incompatibility of that faction with Trump’s GOP/MAGA base is currently playing out in real time.)

Non-bro MAGA Americans are replaying the Civil War, albeit thus far with less bloodshed. They are unwilling to share the civic table with those “Others” they insist cannot be “real Americans.” The war against “woke” is a contemporary battle for White “Christian” Supremacy.

It’s an ugly, embarrassing reality, but let’s call it what it is…..

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George Packer On How We Got Here

I consider The Atlantic a truly indespensible source of information and commentary.  The publication is a welcome island of thoughtful and penetrating articles in our ocean of superficial punditry and outright propaganda. I subscribe to the old-fashioned print magazine, and the last issue included an introductory essay by George Packer that I found particularly insightful. (Okay, honesty compels me to admit that I found his essay so “on target” because he essentially agreed with my own analysis. I’m not immune to confirmation bias…)

The essay is titled “The End of Democratic Delusions.” I think the following paragraph tells us how America has come to this unfortunate place.

This new era is neither progressive nor conservative. The organizing principle in Trump’s chaotic campaigns, the animating passion among his supporters, has been a reactionary turn against dizzying change, specifically the economic and cultural transformations of the past half century: the globalization of trade and migration, the transition from an industrial to an information economy, the growing inequality between metropolis and hinterland, the end of the traditional family, the rise of previously disenfranchised groups, the “browning” of the American people. Trump’s basic appeal is a vow to take power away from the elites and invaders who have imposed these changes and return the country to its rightful owners—the real Americans. His victory demonstrated the appeal’s breadth in blue and red states alike, among all ages, ethnicities, and races.

If we look back at history, at other periods of rapid, dizzying change, we see similar reactions and upheavals. The Industrial Revolution sparked labor uprisings, anarchist movements, and clashes between traditional monarchies and then-emerging democratic and socialist movements. The Protestant Reformation fractured the Catholic Church’s authority, reshaped Europe’s religious and political map, sparked religious wars (think the Thirty Years’ War), and devastated large parts of Europe. There are plenty of other examples.

As Packer notes, reaction is insular and aggrieved, and it “paints in dark tones.” It’s characterized by an intent to undo what most of us see as progress and “reverse history, restoring the nation to some imagined golden age when the people ruled.”

When Democrats lose a presidential election, they descend into a familiar quarrel over whether the party moved too far to the left or to the center. This time the question seems especially irrelevant; their political problem runs so much deeper. The Democratic Party finds itself on the wrong side of a historic swing toward right-wing populism, and tactical repositioning won’t help. The mood in America, as in electorates all over the world, is profoundly anti-establishment. Trump had a mass movement behind him; Kamala Harris was installed by party elites. He offered disruption, chaos, and contempt; she offered a tax break for small businesses. He spoke for the alienated; she spoke for the status quo.

As Packer also notes, we are at a time when the parties have once again switched identities. The GOP of Lincoln was anti-slavery and the Democratic party of the time (and for many years after) was the party of White supremacy; in the 20th Century, they essentially traded places. More recently, another major switch made Democrats rather than Republicans the party of institutionalism. As Packer points out, that realignment has been going on since the early ’70s:

Democrats now claim the former Republican base of college-educated professionals, and Republicans have replaced Democrats as the party of the working class. As long as globalization, technology, and immigration were widely seen as not only inevitable but positive forces, the Democratic Party appeared to ride the wave of history, while Republicans depended on a shrinking pool of older white voters in dying towns. But something profound changed around 2008.

Packard points to three of those profound changes: a growing “conviction that the political and economic game was rigged for the benefit of distant elites; a sense that the middle class had disappeared; and the absence of any institutions that might have provided help, including the Democratic Party.”

Packer is hardly the only political scientist who has reminded Americans that the reactionary period we are experiencing is global. He spends much of his essay focusing on the challenges posed by what he calls “The Trump Reaction,” which he also says is more fragile than many believe, thanks to the fact that Trump has surrounded himself with ideologues, opportunists, and crackpots who will inevitably turn on each other–and the even more obvious fact that Trump has absolutely no interest in governing.

Prior eras of rapid change have also sparked chaos and irrational reaction. History tells us that “this too shall pass.”

We really need to figure out how to speed that passage.

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