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Dec. 1, 2008

Max Freidlander, as told to Jacklyn C. Wadler: India Inkings

Mark Steyn: Whodunit!?

Nov. 28, 2008

Rabbi Ahron Rapps: An evil seed that didn't have to be

Melanie Phillips: Carpe diem --- or can we all relax now?

Nov. 26, 2008

Michael Feldberg: Meet the Orthodox Jew who laid groundwork for scientific development of ordnance that undergirds America's current world leadership

Andrea Simantov: Shades of life

Nov. 25, 2008

The Jewish Ethicist by Rabbi Dr. Asher Meir : Getting Emotional For Influence

The Kosher Gourmet by Ethel G. Hofman : Thanksiving feast!

Nov. 24, 2008

Rabbi S. Binyomin Ginsberg: 'I just Became a grandchild!'

Barry Rubin: Don't flatter your enemies, protect your friends

Nov. 21, 2008

Rabbi A. Henach Leibowitz: Money matters?

Caroline B. Glick: Civilization walks the plank

Nov. 20, 2008

Rabbi Avi Shafran: Bronfman's blindness

The Kosher Gourmet By Linda Gassenheimer: Portobellos add a hearty flavor to pasta with pesto

Nov, 19, 2008

The Jewish Ethicist by Rabbi Dr. Asher Meir : Spread the wealth? Jewish tradition and income equality

Elliot B. Gertel: 'Mad Men': Tackling prejudices or reinforcing them?

Nov, 18, 2008

Dr. Debby Schwarz Hirschhorn: The End of the Age of Reason

Jonathan Tobin: Does Barack + Bibi = Disaster?

Nov, 17, 2008

Rabbi Yonason Goldson: The End of the Age of Reason

Diana West: Gulling Americans into making terror legit?

Nov, 14, 2008

Rabbi A. Henach Leibowitz: The Power of Spiritual Inertia

Caroline B. Glick: The perils ahead

Nov, 13, 2008

Stratfor Intelligence Briefing: How Bush and Obama together could change the Middle East dynamic

The Kosher Gourmet by JeanMarie Brownson: Sweet and savory, crispy and meltingly tender bestilla

Nov, 12, 2008

The Jewish Ethicist by Rabbi Dr. Asher Meir : Tyrannical Co-Workers

Michael Doyle: High Court to consider today donated monuments that may have religious messages in public parks

Nov, 11, 2008

Frank J. Gaffney, Jr.: Will Obama stop government officials considering institutionalizing financial jihad?

Jonathan Tobin: They Will Decide Their Own Fate

Nov, 10, 2008

Rabbi Avi Shafran: $8 billion, modern-day Tower of Babel being built?

Barry Rubin: A letter to the president-elect from a Middle East realist

Nov, 7, 2008

Rabbi Francis Nataf: Of Children and Immortality

Caroline B. Glick: Livni's Obama strategy

Nov, 6, 2008

Rabbi Yonason Goldson: How I tricked a classroom of apathetic students into grasping the fallacy of moral relativism

The Kosher Gourmet By Gina Kim: Tips for making the perfect soup --- includes recipes

Nov, 5, 2008

The Jewish Ethicist By Rabbi Dr. Asher Meir: Destitute Debtors

Bruce Weinstein: 'Religulos': Bad title,even worse movie

Nov, 4, 2008

Frank J. Gaffney, Jr.: Treasury Dept. submits to Shariah law

Frida Ghitis: A surprise for Obama in the Middle East

Nov, 3, 2008

Jonathan Rosenblum: Who says Jews are Smart?

Jonathan Tobin: Was He Wrong About Everything?

March 22, 2007

J-Rhythms with Avraham Rosenblum: JWR's cutting-edge music program showcasing performers -- singers, song writers, musicians, and bands -- who learn and live the Torah lifestyle (OUR NEWEST IGODCAST !)

Oct. 29, 2003
Mortimer B. Zuckerman: Graffiti On History's Walls (MUST-READ!)

Jewish World Review Dec. 6, 2005 / 5 Kislev, 5766

Wal-Mart and retail innovation

By Rich Lowry


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http://www.JewishWorldReview.com | A new documentary, "Wal-Mart: The High Cost of Low Price," trashes the much-maligned discount retailer. What the company's executives are now encountering is the high cost of progress. The political reaction against Wal-Mart is the latest iteration of the fear and loathing that greets any major innovation in American retailing.


A new paper from the Competitive Enterprise Institute details the long history of resistance to retail advances. In the late 19th century, the advent of department stores caused outrage. The same reaction met the rise of mail-order catalogs, which were burned in public at the behest of local retailers. The rise of chain stores in the 1920s also inflamed local merchants, who claimed that they threatened "the future of the children."


Now, it's Wal-Mart's turn. Founder Sam Walton realized that by offering customers discount prices he could make more profits based on increased volume. Hence, the Wal-Mart revolution, and the movement against it that "The High Cost" celebrates. Wal-Mart is faring the film surprisingly well, since its release has coincided with the publication of studies that debunk the image of the company crucifying its employees on a cross of low wages and nonexistent benefits as it forces them onto welfare.


The first thing to know about low price is that it has a wonderfully low cost for Wal-Mart customers, a category that includes 8 in 10 Americans a year. A study by Global Insight — paid by Wal-Mart to study the company's economic effects, but granted independence — estimated that Wal-Mart lowered the consumer price index by 3.1 percent between 1985 and 2004, making for $263 billion in consumer savings by 2004. In a widely cited report, Jason Furman of New York University notes that Wal-Mart and other discount stores make "consumers better off by the equivalent of 25 percent of annual food spending.


But only at the price of wage slavery? No, Wal-Mart's average wage of roughly $9 an hour is on par with other retailers. Because the jobs tend to be low-skill, retail workers earn less than the average wage for all U.S. workers. According to Furman, this has been the case for the past 20 years and holds true even in areas without Wal-Marts.


Three-quarters of Wal-Mart workers are full time. Other retailers have work forces that are only 20 percent to 40 percent full time. And Wal-Mart offers health insurance to full-time and part-time employees, which is rare in retail. Eighty-six percent of Wal-Mart employees have health insurance; 48 percent through Wal-Mart's plan.


Although "The High Cost" attacks Wal-Mart as a welfare queen, only about 5 percent of Wal-Mart employees are on Medicaid, the same proportion as other retailers. Furman points out that a Wal-Mart worker who has to decide whether to buy the company's family insurance policy at a cost of $1,800 annually or take Medicaid coverage instead is wise to go on Medicaid. "The beneficiary of choosing Medicaid is the worker," Furman writes, "not Wal-Mart."


Because Wal-Mart is a behemoth, critics assume that it can change its wage and benefits policies on a whim. According to Furman, Wal-Mart earns $6,000 per employee. That's below the national average of $9,000 per employee. Wal-Mart makes $288 billion of revenue on $277 billion of costs, a 3.7 percent profit margin on costs, which leaves little room for error.


It is true, as the CEI paper notes, that Wal-Mart jobs are poorly paid compared to unionized jobs. Grocery clerks at unionized stores in California get paid nearly $18 an hour. But Wal-Mart passes its lower costs on to customers, who pay 17 percent to 39 percent less for groceries there.


In this sense, the self-styled humanitarians who object to Wal-Mart are narrowed-minded defenders of a special interest. If they get their way, they might better the lot of retail employees, but at the cost of the community, including people who aren't fortunate enough to have a retail job but who still have to buy clothes and food. And so the anti-Wal-Mart zealots oppose the general welfare and an innovation that has promoted it. Hasn't it always been thus?

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© 2005 King Features Syndicate

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