IAP Political Forum

I recently saw an ad on Wal-Mart's joint venture with China. Then I read a Wall Street Journal article this morning on how more Americans are concerned about free trade and foreign economies.
http://youtube.com/watch?v=Nx2ltoqyrEw

http://online.wsj.com/public/article/SB119144942897748150.html?mod=blog

With the whole recall thing, I think the larger, influential companies like Wal-Mart should be pressured to tell their suppliers to clean up their act. I'd much prefer that approach than government regulation.

Wal-Mart will not self-regulate its suppliers without government intervention, because it has no real incentive to do so, unless there is a substantial boycott of their products, which is not probable. 

This article had nothing to do with Wal-Mart.  This is based on the general political issue of whether Free Trade is good for the economy or not. 

This was all started from the many practicing Economists who started re-evaluating the effects of globalization and the cost/benefits of comparative advantage that have again been put in debate.  (But it always is)

Many Americans feel that the Republican platform of free trade is failing America so of course the politicians trying to get into office start to change their views...  ::)

Wal-Mart however has got a lot more challenges to face than just an attack on free-trade, like employee benefits, wages, and environmental management.

However, management is cleaning up and after years of Wal-Mart bashing by filmmakers, critics, politicians and the people alike, Wal-Mart is changing their ways, and hopefully, especially with moves toward Natural Capitalism, will have a profound effect on our economy and the rest of the world. 

What are you implying by 'natural Capitalism'? Do you believe that in a system of complete economic freedom corporations would demonstrate any concern for employee satisfaction and self-regulation?

A thread on it...

http://www.itsallpolitics.com/forum/index.php?topic=146.0

i try to avoid stuff made in china whenever possible.

I only buy things (no homo) from china because its so hood. Sweatshops keep it gully.

 ::)

wtf? did anyone understand that?

:laugh:

The article points out that product safety is a concern among voters.

Wal-Mart does have a lot of problems to fix it but I don't see any evidence they're cleaning up their act. Sure, they have a PR campaign but that doesn't change the fact the company puts pressure on it's vendors/suppliers to cut costs. The American consumer suffers the consequences as a result of the unsafe products while Wal-Mart gets away with passing the buck? Not good.

Wal-Mart is not the only retailer selling these products.  The blame should be put on the suppliers... 

How is any retailer supposed to know until Matel comes out saying so?

To claim that Wal-Mart has no control over its suppliers is ridiculous. Surely Wal-Mart would refuse to purchase products from suppliers whose prices are not competitive, thus influencing them to reduce costs.

Um, I never said they don't have control over their suppliers... Who is supposed to know that the usual products that have always been pushed through their supply chain is to be tainted.  Some of their suppliers didn't even know!

Stop classifying Wal-Mart as the evil empire... 

You don't identify a connection between corporate pressure to reduce production costs and the accidental release of defected and dangerous products?


Evil? No, just complicated. As a single organization it is only a product of economic circumstance. The owners of Wal-Mart are forced to engage in harmful practices due to the competitive market.

Interesting comment.  Yet, Mattel (as an example) isn't the only company that supplies their products.  Maybe the suppliers and retailers should of have had a more active role however when business is usually based on trust after good reputations, businesses shouldn't have to expect such things to happen.  But don't think that risk management teams aren't all over this.  They are going to make sure that something like this isn't going to happen again.  The cardinal rule is admitting mistake, and that has happened.


Forced? I don't think so.  Complicated? Maybe.  Mattel at first tried to blame China's producers only later to blame themselves.  The business world is much complicated but I don't think we should be so quick to blame retailers even if they have had an indirect effect on production.  If certain production standards can't be met, truthful companies should be open about it.  That's it.  If not, government needs to step in.  And china did.  Supposedly.

Walmart will change its policy, all people have to do is care more about policy than price.  Everyone wants to blame Walmart for everything, but does anyone understand that Walmart will only do what people want them to do?  Buy more expensive products from another firm and eventually Walmart will care, they don't have a monopoly, only the lowest prices.

Of course we can throw out the fact that Walmart, especially when located in poor areas, lowers the food and clothing costs substantially 10 - 20%. 


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I've got new hope for WalMart, if they come through on their promise.

They are going green, according to the CEO. Reducing product packaging, one cereal box that contains no air, would save 1,500 trees. vs. the existing packaging that is 20% air (no product).

They are also giving preferential treatment to supply siders that demonstrate an acceptable level of green technology at their facilities.

In 2 years, the goal is to have all WalMart trucks operating on biodiesel.

They are also retrofitting their stores with renewable energy as part of the energy mix where appropriate. That includes auto dimmers that adjust the lighting based on the amount of sunlight that is coming into the store (much more efficient than "all on or all off"). They are also adding solar panels on the roofs, and wind turbines as well.

This is a good sign to see one of the most competitive companies ever known take a lead in this area.

I can't recall exactly where but somewhere locally I have seen a store with a wind generator...

I saw one in Austin, TX