WAL-MART’S ROLE IN U.S., GLOBAL ECONOMIES
By Bob Confer

As a manufacturer and amateur economist, I used to strongly despise Wal-Mart. I believed that Wal-Mart was dangerous to the nation’s manufacturing sector because of its cutthroat purchasing techniques and hunger for global outsourcing. In a lot of cases it is. But, after careful analysis of the anomalies of the New Economy, I have changed my tune regarding Wal-Mart. I now look at Sam Walton’s empire as an integral piece of the global marketplace and can appreciate its impact here in America. I’ve come to the conclusion that there are good points and bad points with the whole system created by big box stores and, in the end, the good outweighs the bad.

From the Super Center rumblings here in Lockport to the nationwide screenings of an anti-Wal-Mart movie, emotion reigns supreme in any Wal-Mart discussion, with the populace split equally on either side of the fence. Naysaying consumers, economists, and politicians all must cast aside their tunnel vision and rationalize - not emotionalize - Wal-Mart’s impact. To do so, one must realize we are now in a very different, ever-changing global economy. American’s resent the global economy because it does not fit what we’ve become accustomed to from the American money machine. Rather than our little nation completely dominating the scene, the situation now exists where every nation is together as one gigantic market. Despite what eco-partiots might spin, this does not mean our economy is weakened or destined for failure. Contrarily, the US economy is still growing at nearly a 4% annualized clip, a rather robust pace.

Without fail, the Wal-Mart haters will ask, “what of China’s impact?”. They are fearful of Wal-Mart’s outsourcing land of choice. Sure, Wal-Mart has shut down some American manufacturers and has gone outsourcing to China, but American ingenuity will persevere as it has since the dawn of this great nation. Any business will adjust if it’s entrepreneurial or innovative by nature. If you look at the great many manufacturing firms still within our nation’s borders, high-tech manufacturing and efficiency reign supreme. China is great for trinkets, but they will never match us in creativity (their culture stifles it), high-tech jobs, or large-part manufacturing.

The economic dynamics are bound to change in our favor as well. China’s economy is growing at a rate double that of the United States. This can be expected from a country that is in a steady transition from an agrarian-based to a manufacturing-based economy. This growth has jumpstarted the expansion of China’s middle class, who will ultimately become as consumptive as we are. At this rate, the Chinese will be making products for themselves more so than the global market and, looking into the crystal ball, China will be unable to effectively meet its own demand - let alone ours - for low-cost items. Therefore, they will be unable to feed us such goods in the future and we will manufacture said goods for ourselves once again.

Remember the similar outsourcing fears directed at Japan’s manufacturing movement decades ago? It’s an afterthought now; Japan’s economy became our peer and not our killer. China will fall into the same category someday soon.    

Wal-Mart is not killing the American economy. In many instances and for many people, it is making it better. Remember this: Consumerism and Materialism define American culture. Wal-Mart is only catering to the needs of the market. By offering anything and everything at low prices, they are doing our economy, our society, a favor by allowing lower-middle-class and poorer people to participate in the economy and gain a higher standard of living by having things they previously could not before. Even those who most despise Wal-Mart must admit that it feels good to see those blue-collar breadwinners and their families live well.

As Lockport heads into another round of Super Center talks and head-butting of those for and against, the above assessments must be taken into consideration. Wal-Mart is not the be-all end-all for the economy, but it has its place and it’s a necessary one at that.