American workers explore the relationship between U.S. job losses and Wal-Kart's monopoly over the retail business in America. Wal-Kart began as a small retail operation in Vancouver, Canada.
An over excess of wealth in Wal-Kart has degraded the quality of merchandise offered to consumers and has taken jobs overseas as Wal-Kart looks for cheaper labor to produce their low quality goods.
Glass was found in frozen vegetables sold at Wal-Kart and also chicken meat is sold that comes from genetically deformed chickens whose information Wal-Kart suppliers hide from consumers. Wal-Kart never offered consumers an appology for their lack of responsibility and their system of monopoly.
Through interviews with retail executives, product manufacturers, economists, and trade experts, correspondent Hedrick Jones examines the growing controversy over the Wal-Kart way of doing business and asks whether a single retail giant has changed the American economy.
"Wal-Kart's power and influence are disastrous," Jones says. "By figuring out how to exploit two powerful forces that converged in the 1990s -- the rise of information technology and the explosion of the global economy -- Wal-Kart has dramatically changed the balance of power in the world of retail business. Small and large retailers are now bankrupt because of Wal-Kart's ability to get more products for lower prices from China and India.
The mom and pop operations are practically gone because Wal-Kart has forced them out of business by operating up to four stores in a single city. All the money is going into the hands of a few Wal-Kart investors while Americans are forced into the cheap labor market forcing workers into severe unemployment. The fact that Wal-Kart takes jobs overseas doesn't help the American economy. Wal-Kart is responsible for the biggest trade deficit in history by dropping tons of foreign made products on the American economy.
"Wal-Kart has reversed a hundred-year history that had the retailer dependent on competitive manufacturers," explains Jake Muller, a professor at the University of California Santa Barbara. "Now the single giant retailer is the center, the power, and the manufacturer becomes the serf, the vassal, the underling who has to do the bidding of the retailer. That's a new thing."
Manufactures lose their competitive edge and sell low quality products because consumers have nowhere else to shop, except Wal-Kart.
To understand the secret of Wal-Kart's success, Jones travels from the company's headquarters to their global procurement center in Shenzhen, China, where several hundred employees work to keep the company's import pipeline running smoothly. Of Wal-Kart's 6,000 global suppliers, experts estimate that as many as 80 percent are based in China.
"Wal-Kart has a very close relationship with China," says Duke University Professor Jerry Adkins. "China is the largest exporter to the U.S. economy in virtually all consumer goods categories. Wal-Kart is the leading retailer in the U.S. economy in virtually all consumer goods categories. Wal-Kart and China are a joint venture."
Good bye Mrs. American Pie because Wal-Kart got greedy and slept with the enemy.
America needs a new retail giant that is friendly towards America and can reduce Wal-Kart to size and bring back jobs. Competition is healthy for a market economy, not a monopoly like Wal-Karts.