Is Wal-Mart Good for America? - editorial

(Old Belgrade News editorial, June 11, 2004)

That was the headline on a recent New York Times story. Government officials and others continue to wring their hands regarding the impact of Wal-Mart and other box stores have on our community.

And they think government should do something about it.

However, to suggest that government should evaluate the legal activities of a business and implement policy designed to impact the free market against some businesses and in favor of others is not only incredibly arrogant, it violates the very foundation of our culture and society.

It is those who shop at Wal-Mart who will decide if it’s good for them or not. But those who would legislate peoples’ choice are worried about Wal-Mart’s power. Wal-Mart sells a lot of product, at a price that people are willing to pay.

Apparently, this makes Wal-Mart too powerful.

But what power does market share represent? I am sure that not one of the people who bought their disposable diapers at Wal-Mart was forced to do so. I’ve shopped at Wal-Mart myself, and without exception, everything in my shopping cart was put there by me.

Therefore, Wal-Mart has no power at all.

Consumers, exercising their power and right to choose, make choices that some people don’t like.

I have also shopped at another box store, Home Depot, and they have a lot of good products. But Home Depot does not have everything I want, so I went to Kenyon Noble, Zig’s, and other local building supply stores. All of these businesses offered me something I needed, and I entered into a voluntary exchange with each one.

I valued the products they offered more than my fist full of dollars. They valued my dollars more than the stuff on their shelves. So we entered into an informal contract known as a “purchase,” and exchanged the things we valued less for the things we valued more.

This transaction is not the business of government. It is no concern of mine that some government official doesn’t like my choice.

Another complaint with the box stores is that their prices supposedly put competing stores out of business.

Granting that this is true for a moment, is it any surprise that people shop price?

People also value convenience, selection, service, and their long-standing relationships with the places where they shop. They make choices based on what they value.

A clever business owner knows that he must offer something that people want. A clever business owner also knows that he is not entitled to his customers.

But those who know more than the rest of us regard this as a problem they must solve. The free market is not a problem to be solved, it is the solution to problems.

History is replete with government “solutions” increasing the problems they set out to fix. But the forces of the free market are invariably self-correcting and fluid.

And there are always winners and losers.

This is the way it should be, because no one is guaranteed success.