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March 19, 2010
Rabbi Berel Wein: The Divine is in the details
JWisdom.com Stewards of sacrifice with Rabbi Sroy Levitansky (5 minutes)
Caroline B. Glick: Why Obama is waging war on Israel
March 18, 2010
Cal Thomas: Israel's New Enemy: America?
JWisdom.com Love me not? with Rabbi David Aaron (5 minutes)
Jonathan Rosenblum: Washington Throws a Tantrum
March 17, 2010
Rabbi Yonason Goldson: Orwell, Santayana, and Me
Jonathan Tobin: How Many Lives Is Biden's Pride Worth?
March 16, 2010
Steven Emerson: Combating Lawfare
JWisdom.com How to perform a miracle with Rabbi Yaakov Asher Sinclair (4 minutes)
Anne Bayefsky: Behind Obama's Dangerous Overreaction on Israel
March 15, 2010
The Jewish Ethicist By Rabbi Dr. Asher Meir: Father's obligations toward minor children
JWisdom.com Moody, Grumpy, Irritable Children with Sarah Chana Radcliffe (5 minutes)
Judith Graham: Get the whole picture before a CT
March 12, 2010
Rabbi David Aaron: You CAN have Heaven on Earth
JWisdom.com Manufacturing mediums with Rabbi Sroy Levitansky (4 minutes)
Caroline B. Glick: The march of the Red-Green brigades
March 11, 2010
Glenn Garvin: Conspiracy theories, why people believe them and how they spread
JWisdom.com For Yourself, Not By Yourself with Rabbi Lawrence Hajioff (8 minutes)
The Kosher Gourmet by Linda Gassenheimer : Turn leftovers into tasty New England hash
Paul Richter: Biden promises 'viable Palestine' is in the offing
March 10, 2010
Paul Greenberg: Death Checks In
JWisdom.com How To Get A (Real) Life with Rabbi Warren Goldstein ( EXTENDED EPISODE)
Paul Richter: Israel exerts soverign right to its capital as Biden looks on astounded
Richard A. Serrano: 'Jihad Jane' indictment alleges threat from within U.S.
March 9, 2010
Wesley Pruden: Joe's Israeli adventure
JWisdom.com Free To Be (Responsibly) You and Me! with Rabbi Naftali Brawer ( 8 MINUTES)
David G. Savage: Supreme Court to rule on free speech in case of soldier's funeral
March 8, 2010
The Jewish Ethicist by Rabbi Dr. Asher Meir: Make a fuss about those who cuss?
JWisdom.com Finding or Losing Yourself? Here's How! with Rabbi David Aaron ( 5 MINUTES)
Steven Emerson: America must learn from the UK about the future of Islamist subversion
March 5, 2010
Rabbi Berel Wein: Golden Calf still with us --- except it has multiplied
JWisdom.com The Limits of Eternity with Rabbi Sroy Levitansky ( 4 MINUTES)
Caroline B. Glick: Biden's lost cause
March 4, 2010
Alan M. Dershowitz: How About A Real Campaign Against Abuses?
JWisdom.com Using Things, Loving People with Rabbi Lawrence Hajioff ( 7 MINUTES)
Jordan "Gorf" Gorfinkel's Everything's Relative
March 3, 2010
JWisdom.com Grasping The Name of Your Life Game with Rabbi Warren Goldstein ( 8 MINUTES)
The Kosher Gourmet by Marialisa Calta : A cowboy's recipes for really good grub
March 2, 2010
Rabbi Avi Shafran: Someone's there
Diane Toroian Keaggy : Have we misunderstood Michelangelo?
March 1, 2010
JWisdom.com Whole in One with Rabbi David Aaron ( 5 MINUTES)
Michael Muskal: Hillary meets with Israeli official, discusses gefilte fish dispute
Feb. 26, 2010
Rabbi Francis Nataf: The Megilla of Spring
JWisdom.com A Biblical Secret for a More Powerful You with Rabbi Sroy Levitansky ( 5 MINUTES)
Caroline B. Glick: When rhetoric rules the roost
Feb. 25, 2010
The Jewish Ethicist By Rabbi Dr. Asher Meir: When walking away from your mortgage is both economically sound and makes ethical sense
JWisdom.com The Second Most Important Question in Your Life with Rabbi Yehoshua Karsh ( 5 MINUTES)
Seema Mehta : U.S.-Israel relations raised in California's Senate race --- by conservatives
Feb. 24, 2010
Rabbi Avi Shafran: The gift of the ‘prayer bomber’
Steven Emerson: Why Religious Freedom Commission is under attack
Feb. 23, 2010
Dennis Prager: Government, Yes! The Divine and Parents, No!
JWisdom.com The Last Laugh of Enlightenment with Rabbi Yaakov Asher Sinclair ( 5 MINUTES)
Anne Applebaum: Prepare for war with Iran --- in case Israel strikes
Feb. 22, 2010
Rabbi Yonason Goldson: Is it not refreshing Tiger Woods' career has crashed and burned so dramatically?
JWisdom.com Esther and the third Truth with Rabbi David Aaron ( 9 MINUTES)
Kelly Brewington: Going smoke-free may raise diabetes risk
Feb. 19, 2010
Rabbi David Aaron: Is the Divine beyond us or within us?
JWisdom.com Olympic Faith with Rabbi Sroy Levitansky ( 5 MINUTES)
Caroline B. Glick: Israel and the West are perpetrators of a myth that endangers the Jewish State
Feb. 18, 2010
Cal Thomas: Who is Rashad Hussain?
JWisdom.com A Wedding Disaster to Remember with Rabbi Y.Y. Rubinstein ( 3 MINUTES)
Feb. 17, 2010
JWisdom.com Think your life is messed up? with Rabbi David Aaron ( 11 MINUTES)
Greg Logan: 'Greatest Jewish sporting event of all time since David versus Goliath' may be postponed because of bar mitzvah
Feb. 16, 2010
Anya Martin : Boy's 'cerebral palsy' fixed with diet
JWisdom.com Feet On The Street Spirituality with Gavriel Aryeh Sanders ( 8 MINUTES)
Marty Peretz: Let Europe Mind Its Own Business. It Brings Nothing To The Table Save For Mischief
Feb. 15, 2010
Herb Geduld: Lincoln and the Jews
JWisdom.com Are Our Children Really Ours? with Rabbi Mordechai Becher ( 5 MINUTES)
Susan King: 'Wolf Man' reflected writer's wartime Jewish experience

Jewish World Review Jan. 3, 2006 / 3 Teves, 5766

The Wal-Mart model

By Michael Barone


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http://www.JewishWorldReview.com | The American economy continues to surge ahead, though you won't read much about it in mainstream media. Economic growth in the third quarter was 4.1 percent  —  despite Hurricane Katrina!  —  the 10th consecutive quarter with growth over 3 percent. Unemployment is 5.0 percent  —  lower than the average for the 1970s, 1980s, or 1990s. Since April 2003 the economy has created a net 5.1 million new jobs. Core inflation is only 2.1 percent, and gas prices, which surged above $3 a gallon after Katrina, are now down around $2. Productivity growth for the five-year period of 2000-2005 is 3.4 percent, the highest of any five-year period in 50 years.


This is a remarkable performance and owes something surely to the Bush tax cuts and to Alan Greenspan's stewardship at the Federal Reserve. But it also tells us something broader about the American economy. Mainstream media coverage about the economy tends to be full of bad news, especially during Republican administrations, and to focus on economic problems. But over the longer term the story of the American economy is one of success. A quarter century ago many economic commentators said that the era of low-inflation, high-job-creation economic growth was over. In the ensuing 25 years it has come to be the norm.


The negative bias of economic coverage can be seen in stories about the current No. 1 private-sector employer in America, Wal-Mart, and the No. 1 employer back in the 1970s, General Motors. The GM story is genuinely grim: The company is laying off thousands of workers and closing plants and is threatened with bankruptcy. Stories about Wal-Mart tend to focus on allegedly low wages and healthcare benefits, and to say less about the company's continual profitability and the low prices that benefit consumers. These companies are not entirely comparable; they're in different businesses. But some of the differences between them illustrate why the American economy, which seemed to have run out of gas 25 years ago, is now doing so well.


One big difference is this: General Motors' business model was designed for a static economy; Wal-Mart's for a dynamic economy. From the 1930s, GM  —  as one of only three major automakers  —  was able to pass along to consumers the high costs imposed by wages, pensions, and health benefits negotiated with the United Auto Workers. When emerging foreign competition started to make life tougher for Detroit executives in the 1970s, they tried to insulate themselves with government tariffs and domestic-content requirements. More recently, they've tried to offload their high healthcare costs onto the government. Wal-Mart, in contrast, started off with many retail competitors and has sought more, by taking on supermarkets. It competes by holding down costs and prices for consumers.


Quick reaction. Wal-Mart has been much more skilled at adapting to market conditions. Its computers keep it instantly apprised of sales, and its distribution system keeps stores stocked with items consumers want. Someone making a 3-ton car cannot adapt so quickly, but even so it still takes GM years to get new models on the market  —  and often they're not what consumers turn out to want.


Then there are employment costs. Yes, Wal-Mart does not pay high wages or provide healthcare benefits to all employees. But not all workers today want full-time jobs (they may want to be home when kids return from school) or health insurance (many are covered by a spouse's policy or Medicare). And Wal-Mart promotes from within: You can work your way up from the store floor to management ranks. GM and the UAW, in contrast, insist on a sharp line between labor and management, with all employees working full time and getting full benefits. That made sense when almost all workers were men supporting families. But it is a poor fit with a labor market in which many workers are women, teenagers, or retirees seeking extra income.


In retrospect it's not so surprising that 25 years ago, when GM was deemed the prototypical firm, experts were pessimistic about the American economy. They failed to foresee that more nimble firms like Wal-Mart would rise and would supply the amazing resilience that has enabled the American economy to thrive, as Greenspan has observed, even when hit by calamities like September 11 and Katrina.

Every weekday JewishWorldReview.com publishes what many in in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.

BARONE'S LATEST
Hard America, Soft America: Competition vs. Coddling and the Battle for the Nation's Future  

America is divided into two camps, according to U.S. News and World Reports writer and Fox commentator Michael Barone. No, not Red and Blue, though one suspects Barone may taint the two groups in the hues of the 2000 presidential election. Barone's divided America is one part Hard, one part Soft. Hard America is steeled by the competition and accountability of the free market, while Soft America is the product of public school and government largesse. Inspired by the notion that America produces incompetent 18 year olds and remarkably competent 30 year olds, Barone embarks on a breezy 162-page commentary that will spark mostly huzzahs from the right and jeers from the left. Sales help fund JWR.

JWR contributor Michael Barone is a columnist at U.S. News & World Report. Comment by clicking here.




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