Posts Tagged ‘Business/Finance’
Walmartization?
December 17, 2011 | 
Author I recently read an article that was very negative about the effects Wal-mart has had on the economy. I would link the article, however it was full of so many mis-statements and downright twisting of statistics I think it a disservice to the reader to subject them to the class warfare nonsense.
Rather, it seems better to just pose the question is Wal-Mart good for the US?
I have personal experience with the destruction Wal-Mart can have on a community, having said that destruction is not always a bad thing. My father owned a rather large sporting goods store in a small community, it was roughly the size of a Big 5 store with a mix of goods tended toward hunting and fishing. The store was very prosperous, I won’t go into the numbers because it is irrelevant but it was prosperous. That little store provided a good living for my father and three “nowhere dead-end” jobs suitable for retirees or highschool kids which I was at the time. Having said that, the only person at that store who could have been considered a “career” person would have been the owner. The rest of us were just biding our time or working for pocket cash as in the case of the “part-timers” my father employed.
That little store was put out of business by Wal-Mart, our store simply could not compete with Wal-marts buying power, and we bought “wholesale” at the same prices Wal-Mart sold retail. No matter what we did we couldn’t figure out how to go toe to toe with them, as for many items we sold price was the determining factor. So in the case of this illustration Wal-Mart was “Bad” for my father but was it bad for the community in general?
At the time I was getting paid $5 bucks an hour some of the other employees were paid more. Walmart’s entry-level pay was $9, they employed about 100 people in all skill levels along the pay curve. Many people began work there after quitting other lower paying jobs. So the net effect in our community was; several boutique style stores went out of business, hurting their owners but benefiting their employees as they were now employed by the Wal-Mart, at high wages with the option of career advancement, something that is not available in any small business.
The lower prices and higher service walmart provided raised the standard of living in the community by lowering the cost of everyday goods. Allowing their customers more disposable income. Within a year of Wal-Mart a bunch of “new” businesses opened, mainly restaurants. No doubt a result of the extra disposable income created by the savings on necessities that Wal-Mart brought.
So the net result of Wal-Mart was actually positive! Far from destroying small business Wal-Mart created opportunities for business that would not have existed without them. If you ask my dad today I think he would agree even though he is still chagrined by the loss of his store.
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US Treasury Income and Expense Report
Monthly Treasury Statement
You all should take a look at this. This is the monthly income statement from the US Treasury, it is not very complicated if you have ever balanced your own checkbook you should be able to grasp this.
In May 2011 the Federal government had 170B, in income, and around 30B in debt payments. This means there is NO danger of an US debt default we are being lied to by the President and many members of Congress. It is shameful what they are doing to this country and even more shameful if we let them get away with it.
There is plenty of room in this budget for cuts that will “Balance” the budget NOW not in ten years. Don’t believe me, take a look at the numbers. The stupid NON-Necessary spending is beyond belief the things I read in here have me so mad I can barely type.
Here are some examples, for Comparison the whole Judicial Branch operates on 571m, that seems about in the right ball park or even a little low, but remember they are a Constitutionally mandated branch of the Federal Government. The Department of Agriculture spends 11,385m that’s 19 times what we for a whole branch of government? What the hell is going on?
Department of Education 8,519, that’s 15 times the Judicial branch, for what?
National Science Foundation 539m, what the hell is this, why does it cost the same as the Judicial Branch?
Department of Labor 9,897 – Really this is more than all the Federal Courts in the land, really? 17 times as much as the courts?
Department of Housing 3,633 – 6 times.
Department of Transportation – 5,925 At least we get highways in this somewhere
Transportation Security Administration or TSA is 572m, we spend the same to pat down babies and grandmas as we do on the whole Judicial Branch.
Ok, numbers too large to comprehend, try this; the US Coast Guard which is Constitutionally mandated only spends 723m. I find it interesting that things we expect the Government to be doing like stable courts and protecting the coasts are the things it spends the least amount of money on.
This is absolutely KRAZY with a K!
Please read this report linked above, highlight some spending cuts and send it to your Congressman, tell them what to cut since they can’t seem to get it!!!
Last month the SBA which helps create jobs spent 121m, while the EPA which destroys jobs spent 835m! Does that make sense?
Job Creation
Today we had quite a surprise on the “Unemployment Front”, the number of new jobs came in at 30% of estimates. That is like ordering a Wendy’s Triple with cheese and being slipped a single value burger.
The Obama Administration’s spokesperson came out and agreed the number was dismal, and then went on to tout “green jobs” and “infrastructure growth” her basic assumption is that government jobs = growth in the economy.
All government jobs are “Vampire Jobs” in order for government jobs to exist they have to “Feed” of the private sector. Some of what the government does is actually necessary, but most of it is not. Most government jobs are created not because of civic need, as in police officers, firemen, and military, but because of useless government meddling. As an example, the DMV is NOT a necessary function of government, would not your car run just as well without a license plate?
The vast majority of government jobs are basically “make work” schemes. Since all government jobs are “vampiric” the more government jobs the more anemic the economy because the more blood will be sucked out.
In order to create Good Jobs, you must first have a need for something that a private individual will pay for with their own excess capital. Good jobs add “value” to the economy. By adding private good jobs the economy grows. Good jobs get created when companies can produce more from an employees work than that employee consumes. The more efficient the employee the more value gets added to the system and the more economic growth results.
Government Jobs never grow the economy because government jobs never create profit. The problem with the economy today is that there is “too” much government involvement in the economy;
- The FDA is prosecuting Amish farmers for selling “Fresh” milk to willing and informed buyers.
- The EPA has barred U.S. Companies from drilling the Gulf while the Chinese and Cubans go ahead and drill there.
- The EPA is going to put a lizard on the endangered specie list to stop “land” drilling in west Texas.
- The IRS has added agents to enforce a healthcare bill nobody understands and Obama favored companies have been wavered from.
- The DOT is in the process of requiring all commercial vehicles to add “Black Box” devices to track drivers. The DOT is further complicating reporting and record keeping, so even individual truck owning small business people need to consult a “specialist” in order to just be regulatory compliant.
- The “Dodd Frank” finance reform bill has changed all the country’s banking rules except the ones that led to the “Crises” .
Dodd Frank has no changes to Fanny/Freddie or other Government mortgage manipulation. Dodd Frank does make it impossible for US banks to engage in certain banking practices which are highly profitable, which Americans specialize in and had nothing to do with the crash. These former US dominated services are being handed over to foreign banks. Dodd Frank should have been called the Deuche Bank Benefit Bill. The point being if we don’t roll back the power of government to meddle in the economy there will be “NO” actual growth.
Jobs are created only when, someone can provide a good or service which someone else is willing to buy freely.
How the House Can Fix The Budget
I am having a hard time seeing what all the trouble is with geting spending under control. It seems to me the House of Representatives holds all the cards.
All bills for appropriations must originate in the House. This is a fancy way of saying the House controls the check book. So it seems to me that if Boehner really wanted to cut spending in a meaningful way they could just do it. The house can go ahead and approve a budget and send it on up the chain. NO compromise take our budget or you get NOTHING. If the House approves a budget its up to the Senate and President to take it. If either does not than it is they and not the House that is shutting down government. The House is supposed to be firm with the nations finances. Instead they act like little whiping boys.
The whole thing is pathetic, man up, pass a balanced budget and then tell the Senate and President, that’s it Take it or Leave it. It seems to me they have spent so much time compromising they have forgot how to be firm.
The Arab Conspiracy to DUMP the US Dollar
At least thats what its being called. News reports have surfaced recently that the oil producing nations have been having secret meetings with the intent if dropping the US Dollar as a meduim for exchange and instead creating a NEW currency or a baskett currency. This has widely reported as some sort of ANTI-American conspiracy.
Nothing could be further from the truth. In reality, the US Congress is to blame for all the woes facing the Dollar. If the Dollar was holding its value these other governments would not want to dump it. However, as Congress continues on with its plan of massive government spending not supported by by the tax base or economic growth there can be only one outcome and that is a devalued dollar.
As the Government deficit spends (Spends Money Not Supported by Tax Revenue) they have to print money in order to do it. When you print money faster than an economy grows you devalue the money currently in circulation. Any time you have more of something the price goes down. Now if you had an investment in your neighbors house and you discovered your neighbor was going to tear the house down, would you not want to rid yourself of this investment before your neighbor makes it worthless?
Of course you would, and thats what is going on with the push to rid the world of the deflating US Dollar. Its not ANTI-American – in fact for americans who want a small Government which obeys its Constitution restrictions this is the best thing that can happen. If were lucky the rest of the world will drop the dollar and this will force Congress back in check.