From Garden Hoses to Cat Food

In this fast paced society, many of us search for a way to get more things done at once. For a majority of Americans, part of the answer lies in what are considered by some as “big boxes.” The idea behind a big box is a retailer that houses just about anything an American consumer can think of. From motor oil to tampons, cat food to light bulbs, garden hoses to Hanes underwear; these places have it all. Newer big boxes now house grocery stores, pharmacies, fast food restaurants such as McDonald’s and Taco Bell, as well as auto centers. Thanks to big boxes, consumers now have the ability to get their oil changed and tires rotated while they shop for censored CD’s, the new Mary Kate and Ashley fragrance, and have a Big Mac meal with a Diet Coke at McDonald’s. Most consumers flock to big boxes to do one stop shopping at low prices. What most of these consumers are unaware of is the true cost behind shopping at these big box retailers. Sociologist Thomas Sowell wrote and essay entitled “The Crusade against Wal-Mart” which delivered an intriguing critique on the liberal view of the number one of big box stores, Wal-Mart. Sowell criticizes the notion of “living wages”, the worth of Wal-Mart employee’s labor, and the demand for an increase in Wal-Mart employee wages. In the essay, Sowell sites no sources, leaving his argument weak which in turn causes his statements into opinions, rather than facts. The film, “Bigger Boxes: The Battle over America’s Superstores” gives an empirical view of what Wal-Mart does to local governments and economies. The factual information given in the film can be used to critique Sowell’s assumptions about Wal-Mart.

The first argument Sowell makes is against the “liberal” idea that Wal-Mart should pay their employees more and can afford to do so. Sowell makes the statement: “We could all pay more for whatever we buy or rent.” But can we? The answer is no. Not all of us can afford to do so, especially the employees of Wal-Mart. The wage most Wal-Mart employees make is below the poverty line for a family of four. Sowell himself states this in his essay. Our government’s definition of the poverty line is highly inaccurate and should be higher than it is. He then begs the question that if someone is in fact living, then how are they not making a living wage? Again, a “living wage” and the poverty line are false conceptions that one is capable surviving on Top Ramen noodle packets three times a day without health insurance. The film states that only 38% of Wal-Mart employees have healthcare coverage. This is because employees must pay for healthcare out of their own pockets. This is partially due to the fact that Wal-Mart prohibits their employees from joining unions. The wages that these employees make are so low that many employees, approximately 62%, cannot afford to pay for healthcare coverage (Nordquist).

Sowell later states that employees “wouldn’t be working for Wal-Mart if someone else valued their labor more.” This is another false conception. When big boxes turn into super centers (big boxes that carry groceries), business is taken away from local grocery stores that have unionized employees. Perhaps this may be considered a personal opinion, but an employer who permits their employees to join a union that provides higher wages, healthcare coverage, among other benefits, would be considered an employer who values their employees. When local grocers lose business to big box super centers, they close; leaving their ex-employees to work for big box retailers that provide them nothing but a lower quality of life.

Sowell states in the last paragraph of his essay that “businesses have done more to reduce poverty than all the intellectuals put together.” He then mentions that “they (the intelligentsia) certainly don’t feel any ‘obligation’ to learn economics…” The economic fact of the matter is that low wage jobs are bad for local economies. When big box retailers (such as Wal-Mart) move into cities and towns, local governments give tax breaks to subsidize big boxes. The film also states that by giving these tax breaks to big boxes, other bodies that rely on government funding such as schools, law enforcement, fire departments, and etcetera, receive less money. Not only do schools suffer, but so does the rest of the city. When workers are paid less, their spending power goes down. Less money is poured back into the local economy. Even worse, if those workers spend their money at big boxes, the profit made by the retailer goes to the corporation located in a different state, rather than the local economy.

It is important to understand the true cost of the items that are purchased at big box retailers. The difference in price is paid for in tax dollars; eventually we all pay the price. To find the real price of last week’s Wal-Mart trip, add the additional taxes paid for uninsured workers, free and reduced lunch programs, as well as a list of other implications the store has caused. Local economies suffer and the quality of life of the hundreds of employees that work for these retailers suffer. If Sowell looked at the specifics, perhaps in a micro-economic sense, then he would be able to see what damage these retailers do rather than good. It is easy to make assumptions but more difficult to back them with fact.

Works Cited

1. Willis, Jessie How We Measure Poverty: A History and Brief Overview. 2000. Occpp.org. 28 April 2007 < www.ocpp.org/poverty.how.htm>
2. Sowell, Thomas The Crusade Against Wal-Mart Capitalism Magazine. May 9, 2005
3. Nordquist, Nick “Bigger Boxes: The Battle Over America’s Superstores” Video 2004