J
John Larkin
- Jan 1, 1970
- 0
John,
What makes you think they can't just decide to pay a substandard wage?
Because nobody would work for them if they could get a better deal
somewhere else. No different from IBM or NASA.
That is
exactly what Walmart does to their suppliers by setting arbitrarily low prices
they are willing to pay for goods. When suppliers couldn't go that low on goods
manufactured in the US, Walmart was very quick to suggest moving the
manufacturing offshore. As far as Walmart is concerned, labor costs are just
another cost to be minimized.
Of course! That's what business does.
All businesses effectively go out for bids for materials and labor,
and pick the low bidder at the desired quality level. Tiffany's does
this for diamonds as much as Wal-mart does this for balloons. That's
the way a market economy works. Nobody is forced to work for Wal-mart,
and they won't if they can find a better-paying or more convenient job
somewhere else.
Sears was famous for squeezing their suppliers almost to death; I
doubt that Saks or Gucci give contracts to the high bidders, or have
"buy America" policies.
John