For 17 years John Lehman worked for Wal-Mart, eventually becoming manager of six stores. In a recent Frontline interview, he explains why the low-prices are bad for America:
"Well, because for Wal-Mart to be able to do that, if they're selling 
merchandise at these ridiculously low prices ... then there's a cost to that. And the cost in America is the low-paid American domestic workers that Wal-Mart has. They pay their people a poverty-level wage."
But the employees choose to work at Wal-Mart and when a better option presents itself they are free to take it. Currently, several hundred thousand Americans are choosing Wal-Mart as their employer.
"And also, by doing this ... they're really hurting the competition. Competition is supposed to be good for you, like you said. Competition is supposed to be good for consumers. But what ends up happening, I think, is if you don't have a level playing field ... then you eliminate competition."
Wal-mart must beat its competition by satisfing the consumers better, which results in higher quality products and services at lower costs. This is good for consumers.
Posted by: John | November 18, 2004 at 11:14 AM