EDITORIAL | UPDATED JANUARY 17

NIELS CHRISTENSEN / Scroll Illustration
Wal-Mart over-criticized for offering low prices
Brad Jackman
JAC01016@BYUI.EDU
Opinion Editor

There’s a new member of the axis of evil, if you ask some social and economic commentators today. There’s no flag or nation or ethnicity to scoff at, just a big smiley face and falling prices.

One might wonder why a homegrown business would receive so much scrutiny for becoming the world’s largest retailer, until he reads the incriminating articles and watch the documentaries that, point by point, describe how Wal-Mart is destroying America.

Critics of Wal-Mart describe a company that pays low wages, buys products from overseas, limits benefits to employees and runs other stores out of business. While some claims made by critics may be founded, it is also important to see the benefits America receives from Wal-Mart.

Wal-Mart pays all associates above minimum wage, and their wages are calculated by the area’s cost of living, wage of competitors and supply of labor. A full 90 percent of Wal-Mart employees have health care, and 50 percent receive health benefits through Wal-Mart.

While critics rage about the poor treatment of employees, the fact that Wal-Mart is consistently staffed shows that there are enough people in America who feel the wages and benefits are better than they could get somewhere else.

Let’s not forget the consumer in all this. Wal-Mart offers lower prices on many basic commodities. The poor and middle class benefit when they can purchase necessary goods for lower prices, increasing their amount of expendable income. With Wal-Mart in town, people have more money to spend on travel, entertainment and education.

Smaller specialty stores will always provide better service in their area of expertise than a mega store. A frame store, for instance, will be able to provide custom picture frames from a variety of materials and in a variety of sizes. Most lower and middle class consumers appreciate a low-cost alternative to specialty stores, even if it means they don’t get the same service or the same selection.

If the quality of service is truly an issue to most consumers, then Wal-Mart will have no effect on small specialty stores.

In a world market, any major retailer is going to purchase products from other countries. If Wal-Mart refused to purchase products from China, they could not offer the same low prices, and a competitor would beat them to the sale.

If consumers are worried about the Chinese trade deficit and employment at U.S. factories, they are welcome to purchase American-made products, often at a significantly higher price.

Concern about these issues is important, and one should be well informed, but to criticize the company is pointless. Employees are not forced to work there, and consumers are not forced to shop there. The beauty of the American capitalist system is that if someone came along with a better way to do things they could beat Wal-Mart at its own game.

There’s nothing wrong with trying to boycott Wal-Mart if you feel they have poor business. There’s nothing wrong with refusing to work at Wal-Mart if they don’t provide the benefits you require. But you must remember that there’s nothing wrong with shopping at Wal-Mart if they can offer the product you desire at the price you want. After all, it’s the American thing to do.

Brad Jackman
opinion editor