A classical liberal's opinion of Wal-Mart

The classical liberal, by the way, is me. The common terms conservative and liberal really only have meaning in certain issues (though most think otherwise), and socialist and libertarian don't describe me, so I am now classifying myself as a classical liberal.

I first posted this as a comment in the daily comment free-for-all at WorldMagBlog.

I personally hate Wal-Mart, and to a lesser extent, other big-box stores. And yes, I generally believe in a free market, with certain limits.

They treat their employees poorly, as I understand (though unions have major problems of their own). There is a study on this, though I haven't read it thoroughly, at dsausa.org

They use their clout to muscle into communities that don't want them, and exert excessive control over their suppliers. They forced the Vlasic Pickle company into bankruptcy. See the Fast Company magazine.

State and federal regulations of all sorts, and the insurance system, systematically harm small businesses that have trouble keeping track of them. Local governments greedy for the promise of tax revenue act the same way, even selling public property and muscling other owners out of their property through such things as zoning and eminent domain to help build a big-box store.

But the main blame for the problems of Wal-Mart falls on society. People shop at big-box stores for their low prices, and won't spend the money to buy something priced 50% higher that will last twice as long. This supports our consumerist economy, in which we buy something, use it for a short time until it stops working, and throw it away to buy a new one. Ultimately, this is less efficient than purchasing for quality.

The free market inherently supports companies that scrounge for every last cent of profit regardless of all other considerations, like Wal-Mart. Companies that care for their employees, and sell the products that best balance quality and cost, will only survive if employees value working for caring employers and buyers realize the true cost of savings. The education and the entertainment-advertising systems are largely to blame for society's current ignorance in these matters. In the name of savings, Americans shop at big-box stores, and some of us defend it by arguing that we are supporting capitalism.

Though I generally support a free market, I am not a capitalist. A classical liberal believes in few restructions on free enterprise. A pure capitalist it seems, believes that money is the ultimate measure of good. I am far more concerned about quality of life than I am about money.

In a free market, I can choose to not support businesses I dislike. This includes businesses that care more about profit than the well-being of their employees and their community/ies. In a free market, that's the only way to control rogue businesses such as Wal-Mart.