"They used to tell me I was building a dream, and so I followed the mob,
When there was earth to plow, or guns to bear, I was always there right on the job.
They used to tell me I was building a dream, with peace and glory ahead,
Why should I be standing in line, just waiting for bread?" (Yip Harburg, lyrics, "Brother Can You Spare A Dime")
My prayers go out to the Chilean people during this time of crisis. I also feel it's incredibly important in light of Walmart's announcement yesterday that they would be donating a million dollars in aid, to provide some perspective on this "corporatocracy" in action.
On January 23, 2009, barely a year and a half ago Walmart's press release touted "Walmart Confirms Successful Tender Offer for D&S -- Investment provides major foothold in key South American market." While most North Americans, financial analysts and journalists did not take note of this announcement, those of us tired of being "hoodwinked" certainly did.
D&S at the time of the acquisition was Chile's largest food retailer. Walmart's Executive vice president and CEO of the Americas, Craig Herkert said, "Partnering with D&S, with its strong brands, and its position as Chile's largest food retailer, is an important step in implementing Walmart's international strategy. We continue to focus on portfolio optimization, global leverage and winning in every market."
Walmart, because of this acquisition, now owns 58.2 percent of the issued and outstanding shares of D&S, while the Chilean owners now only hold 40.1 percent, with the remainder 1.7 percent being held by the public.
In both my books, Hoodwinked and The Secret History of the American Empire, I've noted Walmart as a one of the companies that has avoided a true commitment to environmentally or socially responsible operations.
Walmart, Monsanto, De Beers, Exxon Mobile, Adidas, Ford, and GE are just some of the companies that exploit labor forces and destroy the environment in the name of enhancing their "portfolio optimization, global leverage" and greed-driven bottom lines.
When I read the announcement of Walmart pledging an initial one million dollars to aid grief-stricken Chile on Saturday, I could not help recalling the lyrics of "Brother Can You Spare A Dime." Written in 1931, today it continues to herald the great failure of the predatory form of capitalism I write about in Hoodwinked.
In February 2010, Walmart posted a record profit for the fourth quarter. According to the New York Times (Profit Rises at Walmart, but Outlook is Clouded, NYTIMES 2-19-2010) , during the quarter ending in January, Walmart posted a profit of $4.63 billion or $1.23 a share, up from $3.79 billion, or 96 cents a share, a year earlier. The story notes, "Almost all of the increase was because of the international division."
It strikes me as nothing but manipulative that a company whose profits are so incredibly high, chose to spare less than their equivalent of a dime to the people of Chile during their time of need. This is the same company that exploits the Chilean labor force and disrupts their environment.
Thomas Paine wrote, "We have it in our power to begin the world all over again." Whenever devastating events happen in countries like Haiti and Chile, let us each commit to assuring that the beginning of the rebuilding is done with only the people in mind, and not solely to benefit the corporations.
What can you do? Send an email to Walmart to let them know that you do not intend to buy from them until they become truly committed to a sustainable, just, and peaceful world. When you and I, and a few of our friends, send such emails the message is impossible for them to ignore. The market place is a voting both. We can use it effectively.
Together let us contemplate the possibilities of a new economy based upon producing things that people actually need, and goods and services that serve the earth and offer hope for the future.
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I have been shopping at Target's for the most part, and even many of their dry food items such as dry cereals are cheaper than at WalMart.
WalMart is selling the idea they are cheaper, and people will shop there without actually comparing prices at other stores just BECAUSE they believe that WalMart is cheaper.
I don't even think of food costs in terms of the package price anymore. I'm like, "peanut butter at $.07/oz? I'm stockin' up!"
Walmart is under absolutely no obligation to donate anything, however, they still donated $1,000,000.00. What percentage of Americans have donated to the relief effort in Chile? I understand a very low percentage. Same for other corporations. How much as Apple donated? Has Obama personally donated to Chile yet...if not is he a bad guy?
$1 million dollars is $1 million dollars. That people who receive food, shelter and medical treatment due to this donation don't care that it came from Walmart, only that it came and is available for them. Would you feel better if Walmart gave nothing?
Even the author's own article states: "When I read the announcement of Walmart pledging an initial one million dollars to aid grief-stricken Chile on Saturday...." Ah...didn't he just say the $1 million was an INITIAL pledge. This means more is coming thereby defeating every single point made in the article.
This is just blind Walmart hate.
ill-legalclubs
Trust me when I tell you that the 1mil $ will be spent on HELPing getting those 34,000 employees back to work in the fields and the stores open …
Walmart makes the Walton family rich - Cabelas ditto - you pay for those cheap goods when your tax dollars to to support these dynasties, instead of your infrastructure and community -
You said it yourself - it's an "initial" pledge. Nothing says more isn't coming.
During Katrina, Wal-Mart silently provided essential goods to thousands of those affected. They didn't do it with a camera crew in tow (like Sean Penn did) but they did it and did it in a big way.
As for being a good environmental custodian: solely by virtue of the fact that Wal-Mart demands of its suppliers low prices and economies of scale means that they are probably the best corporate citizens around in terms of the environment.
But here’s what happens. And this is a good example of where the news media hasn’t done a good job. I have tons of news clips that say, oh, this new shopping mall is coming or a new Wal-Mart or a new Cabela’s store, and thanks to tax increment financing, this store is going to be built. Well, what is tax increment financing? I’ll tell you what it is. You go to the store with your goods, you pay for it at Wal-Mart, and there’s a very good chance that that store has made a deal with the government that the sales taxes you are required to pay, that government requires you to pay, never go to the government. Instead, those sales taxes are kept by Wal-Mart and used to pay the cost of the store. And typically in those deals, the store is tax exempt, just like a church.
Every company does it.
Why should Wal-Mart be faulted for doing it. If anything, Wal-Mart hands the savings down to their customers.
Please take a look at Wal-Mart's profit/loss statement and you'll see that, as a percentage of total sales, their profit margin is quite small. That means that the savings ARE being handed down to the customer, who is often a poor person.
As for the low wages and benefits you refer to: why don't you go to the people you are referring to and tell them to quit their jobs and find them one which will get them better pay? How many do you think will listen to you?
Retail is the end of tje economic chain, so subsidizing it does not create wealth, it just redistributes it upward to those who get these subsidies, which help them vanquish their unsubsidized competitors. There is no FREE LUNCH, as the title of my last book explains.
That you evidently support corporate socialism is fine, but you really ought to acknowledge in your posts your views. Try this as a statement of the principles you rushed to embrace:
"I'm a corporate socialist, I favor diverting tax dollars from the schools, police and other services to enhance the profits of privately owned firms and see nothing wrong with forcing people to pay taxes that go to privately owned companies instead of public services because I believe government should take from many people by force to benefit the richest among us. This is a better system that maret capitaism because......."
Now, perhaps, do you see the problem?