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View Diary: WalMart: Monopsony Destabilizes Economies as Much as Monopoly Does (76 comments)

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  •  With respect, you're missing cause/effect here. (6+ / 0-)

    1) Wal-Mart is indeed "that big". Their share of most retail fields is massive. In rural/small town areas, for everything from shoes to apparel to groceries it's often well north of 50/%. Because they are effectively the only game in town for their vendors, they have the unprecedented power to dictate what they'll pay. This in turn drives production to lowest cost sources like China, regardless of the catastrophic effect on American manufacturing and the broader regional economy. Vendors want to sell to someone else? Too bad, they've all been driven out of business.

    2) Wal-Mart employees aren't slaves exactly, but why do you think they work there? Why exactly are there no better work opportunities elsewhere? Because Wal-Mart's massive economic power warps the entire local economy, wiping out all the other options. With, it must be said, the active assistance of gullible local politicians who provide Wal-Mart (Wal-Mart!) with massive tax breaks to help them destroy the local economy and ship all profits to Bentonville.

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