Tuesday, August 14, 2007

As Wal-Mart Goes............

Wal-Mart is warning about struggles ahead as its profits will be below forecasts.
Wal-Mart has already increased its price "rollbacks" by more than 20 percent this year over last year, but the discount giant is still struggling to get its mostly lower-income consumers to shop a little bit more at its stores.
How can they shop more when they have no money? Wal-Mart is partially responsible for the stagnant wages that have been evident since 2001. Now the chickens are coming home to roost. What makes these large employers, especially in retail, believe that they can provide lousy pay and benefits and then expect these same people to just keep shopping? When was the last time you were able to squeeze blood from a stone.

Since I started this site I have been calling for a true economic slowdown. You do not need to be a economic genius to realize that a negative savings rate along with rising prices and stagnant wages will lead to economic disaster.

We have been heading towards this perfect storm since 2001 and now it appears that all the pieces are in place for some real economic pain. Unfortunately it is not the company heads who will feel the pain but the lower and middle classes who have been struggling for years. Lets hope that people are smart enough to realize that the economic policies of this administration have led us to where we are now. If people finally "get it", the Republican party will be the minority for at least a generation.

2 comments:

Larry said...

Walmart and their Chinese goods and anti worker philosophy are one of the major drags on the economy, and I will continue to boycott this anti-American company.

Jeff Autero said...

I totally agree. I never shop there. When they started they were a good company. I had a cousin in Missouri that worked for them and she had stock options and good benefits. That all changed when the founder died.