Is Wal-Mart Good for America?

Is Wal-Mart good for America?

A documentary of PBS (Public Broadcasting Service) dated 2004 and made by Rick Young and Hedrick Smith describes through Wal-Mart the impact of consumerism on the American society.

Three elements of the documentary where learnings to me.

"CREATIVE DESTRUCTION"

This term is used by Prof. Nelson Lichtenstein at the end of the documentary. It was new to me and I did research what it is. As mentioned by the Professor, this concept was introduced by Joseph A. Schumpeter (1942 Capitalism, Socialism and Democracy). The best description I found is the following; "Creative destruction is the dynamic process inherent in a free market economy of existing products (i.e., goods and services), production techniques, professions, companies and even entire industries becoming obsolete and dying out as a result of technological advances (including the development of new or improved products, more efficient production techniques and better distribution methods)."

Copyright © 2006 The Linux Information Project. Created January 30, 2006.

But reading through the details of my findings it appears that Wal-Mart is not in the Creative Destruction, but Destructive Destruction as Wal-Mart destroy jobs in America, move them overseas, but re-creates jobs opportunities in America by cutting wages, health care and job security benefits. Destructive Destruction brings to benefits to society and only takes advantage of cost cuttings.

AMERICA, A DEVELOPING COUNTRY?

The documentary investigates on the side effects of imported goods from China to the US (led by Wal-Mart and its sizable impact) and demonstrates that the volume of trade between China and the US is one to ten in favor of China. The main learning is that the US of A number's one exportations are now raw materials and that it imports technologic manufactured good in the country. Like any developing countries... Will America, with its fierce appetite for consumerism and the hunt of cost in a Destructive Destruction spiral, become a developing country?! That is a big highlight and should become a warning to policy makers.

PAUPERIZATION

Looking at the two learnings above, you can understand that not only the economic landscape has been dramatically changed, but the whole American society. In the documentary you see small towns impacted by the closure of manufactures, experienced and skilled employee looking for jobs, new jobs opportunities requiring less skills and generating lower income, lower health care protection.... It seems that the US of A is moving into a spiral that will just bring more destructive destruction. The American society seems to be looking at cost and price, rather than quality and sustainability.....It