Blog Entry #2

This week, the article on Walmart, from Chapter 4 of "Globalization", by was the most eye-opening to me. I had never thought about the idea that the upper class (outside of Walmart itself) also benefits heavily from the economic pressure Walmart exerts globally. Walmart is the most perfect embodiment of the "race to the bottom" that we have. Not only does Walmart keep wages as low as possible for its own workers, but it provides minimal benefits in a work environment that has been accused of its unfairness to workers. However, the most interesting thing to me is how Walmart's race to the bottom enables and, in some cases, forces other companies to participate in this race.

On one hand, Walmart forces its supplies to provide products at cheaper and cheaper prices, because of the monopoly they have globally. If supplies don't participate in Walmart's world, they are likely to go out of business. This also forces a lot of cultural beliefs on those working for said supplies, such as certain work schedules and participation in our capitalist economy. Additionally, suppliers pay their workers (especially in foreign countries) appallingly low wages. The book gives an example of one 16 year old worker making only thirteen cents per hour, working ridiculously long hours. I personally find this highly inappropriate, where the actual producer is being forced into poverty while the wealthy profit off of their labors. Another problem with the system is the fact that Walmart enables local business here in the West to continue to call the "minimum wage" reasonable, due to Walmart lowering the cost of living with their low prices. This further reinforces the vicious cycle - it almost requires those working elsewhere at minimum wage to shop at Walmart, while their bosses profit. The economic system we have set up today only exists to serve the wealthy.

If I was given unlimited resources, I would be interested in investigated the relations between suppliers and Walmart. I think the details of how they are somewhat forced into doing business with Walmart would provide insight into how to solve the problem. Perhaps running advertising campaigns to convince consumers to shop elsewhere would go a long way. I think the Fair Trade movement is a major step in the right direction. We should be conscious about what we spend our money on, as consumers, because we really do vote with out wallet. If we shop at Walmart, we are voting for the unfair wages someone in another country is being paid. I think we need to make sure that workers have a meaningful voice when it comes to their pay, and everyone who works should make enough to ensure their basic needs are met. Our economic system should be structured to benefit as many people as possible, not only a select few.