Wal-Mart vs The Morons

Letters to SylviaBokorComments
This morning I received the following letters, which I am re-printing here FYI.
The entire text is presented as written, unedited save for a few spelling corre
ctions---the "bares repeating" you will note is a play on words. I have added a
few comments of my own as shown.
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---Original Message -----
From: [Address Omitted]
Sent: Saturday, January 15, 2011 5:53 PM
Subject: Wal-Mart vs.The Morons
Friends:
You've probably seen this article before since it's been around for several mont
hs. However, I think it "bares repeating" as one of the most significant and imp
ortant articles ever to pass on the Internet.
I say this for the following reasons:
1. Since 90% of Americans live within 15 miles of a Wal-Mart, this means that vi
rtually every American that shops at Wal-Mart has been "given a raise", due to t
he incredibly low prices in their stores.
Due to their unbelievable distribution efficiency, their gross profit is in the
range of 10-15%--compared with 30-40% for traditional retailers. For starters, t
hey buy products at incredibly low prices (due to enormous purchasing volume) an
d then are able to sell them (at a profit) at very low mark-ups.
This is obviously the Wal-Mart business plan and it's been copied successfully b
y others as well, but without Wal-Mart leading the way and constantly improving
this model, we Americans wouldn't be getting our raises. I hope you all sent the
Walton family a "thank-you" for your yearly raise.
***[SylviaBokorComments: Last year a businessman wrote me that when he was emplo
yed by Wal-Mart, he observed the efficiency of the Walmart management that made
possible not only their ability to offer lower prices but also their role as a m
odel to other businesses, showing them how to reduce costs in order to maintain
a healthy profit margin.
My only disappointment is that after the brilliant Sam Walton died, the manageme
nt passed to individuals who did not share Sam's basic philosophy. The new manag
ement endorsed Obamacare, which in principle is an attack on all individuals---e
mployers and employees alike. ***End comment]***
2. The Walton family is incredibly generous. When I was running Educate New Mexi
co, they (without any fanfare) gave us about $500,000 a year for 5 years, in a m
atching grant to help low income kids escape lousy public schools. This money wa
s an infinitesimal percentage of their total US charity. On top of giving everyo
ne a raise they're making significant contributions to local problems.
3. This model demonstrates the tremendous power of free enterprise to create wea
lth for all while producing goods and services at a profit (surplus). Since Wal-
Mart is paying Federal corporate taxes at the 35% maximum rate, you can imagine
the checks they write every month to the US government as well as state and loca
l governments.
4. Look at other corporate successes like FedEx and UPS. Unlike the USPS, which
is hidebound, obese and living on taxpayer subsidies, these companies are consta
ntly improving their already super-efficient product to give you more for less.
If the USPS ever lost its monopoly on first-class mail it would be out of busine
ss overnight.
5. You might say, "Wal-Mart doesn't pay their employees enough and sells alot of
junk from China!" I'd reply (a.) that their wages are competitive since if they
paid too little their employees would leave for better paying jobs elsewhere an
d (b.) if the American public didn't by junk from China, Wal-Mart wouldn't sell
it. In either case Wal-Mart isn't holding a gun to anyone's head.
6. Every government agency listed in the article is a monopoly. Monopolies are c
haracterized by (a.) high costs and prices and (b.) low efficiency and quality.
That's why if we want to increase our standard of living, monopolies must be red
uced or eliminated.
***[SylviaBokorComments: In free-markets, a monopoly literally cannot exist beca
use of the off-setting principle of free-market competition. (Please see Dr. And
rew Bernstein's Capitalism Unbound for a full discussion.) What the writer here
is referring to are coercive monopolies, which can only be created and operated
by government---for instance, the Post Office. ***End comment]***
I heard an advertisement today for long-distance service to Europe for 2 cents a
minute. Compared with 40 years ago the price of long distance has fallen by a f
actor of 1000, in inflation-adjusted dollars. This is nothing more than free ent
erprise at work. Governments grow larger and produce less, and they do it with t
he surplus income of individuals and companies that could put it to far more pro
ductive uses that would create additional surpluses. A perfect local example of
this is the Rail Yard and the Rail Runner. Hundreds of millions of dollars have
been spent that aren't producing one nickel of real value for the taxpayer--only
glory and payoffs for the politicians and government officials.
All of this is related to my original post about increasing the Federal debt cei
ling. My point is that money spent by government often goes to Bridges to Nowher
e and as such is wasted. It's far better to "throw down the gauntlet" regarding
the debt ceiling, reduce taxes on families and companies, and let us spend the m
oney on enterprises that will create future profits.
Your arguments not withstanding.
Cheers.
John
-----Original Message-----
Date: Fri, 14 Jan 2011 16:48:07 -0500
From: [Name & Address omitted]
Subject: Wal-Mart vs. The Morons
Wal-Mart vs. The Morons
Please give this a few minutes of your time. I hope that you'll find it interest
ing, or at least thought provoking!
1. Americans spend $36,000,000 at Wal-Mart every hour of every day.
2. This works out to $20,928 profit every minute!
3. Wal-Mart will sell more from January 1 to St. Patrick's Day (March 17th) than
Target sells all year.
4. Wal-Mart is bigger than Home Depot + Kroger + Target + Sears + Costco + K-Mar
t combined.
5. Wal-Mart employs 1.6 million people and is the largest private Employer, and
most speak English.
6. Wal-Mart is the largest company in the history of the World.
7. Wal-Mart now sells more food than Kroger & Safeway combined, and keep in mind
 they did this in only 15 years.
8. During this same period, 31 supermarket chains sought bankruptcy.
9. Wal-Mart now sells more food than any other store in the world.
10. Wal-Mart has approx 3,900 stores in the USA of which 1,906 are Super Centers
; this is 1,000 more than it had 5 Years ago.
11. This year 7.2 billion different purchasing experiences will occur At a Wal-M
art store. (Earth's population is approximately 6.5 Billion.).
12. 90% of all Americans live within 15 miles of a Wal-Mart.
You may think that I am complaining, but I am really laying the ground work for
suggesting that MAYBE we should hire the guys who run
Wal-Mart to Fix the economy. This should be read and understood by all Americans
Democrats, Republicans, EVERYONE!!
To: President Obama and all 535 voting members of the Legislature, it is now off
icial you are ALL corrupt morons:
***[Sylvia Bokor Comments: This is not true. Some officials are corrupt. Some ar
e not. Some are non-thinking, but none are literally or figuratively morons. The
re is a deeper, more insidious cause of the destructive point of view outlined i
n this letter, i.e, an anti-man philosophy---especially noticeable in Environmen
talists' policies.
***End comment]***
* The U.S. Post Service was established in 1775. You have had 234 years to get i
t right and it is broke.
* Social Security was established in 1935. You have had 74 years to get it right
and it is broke.
* Fannie Mae was established in 1938. You have had 71 years to get it right and
it is broke.
* War on Poverty started in 1964. You have had 45 years to get it right; $1 tril
lion of our money is confiscated each year and transferred to "the poor" and the
y only want more.
* Medicare and Medicaid were established in 1965. You have had 44 years to get i
t right and they are broke.
* Freddie Mac was established in 1970. You have had 39 years to get it right and
it is broke.
* The Department of Energy was created in 1977 to lessen our dependence on forei
gn oil. It has ballooned to 16,000 employees with a budget of $24 billion a year
and we import more oil than ever before.
You had 32 years to get it right and it is an abysmal failure.
You have FAILED in every "government service" you have shoved down our throats w
hile overspending our tax dollars AND YOU WANT AMERICANS TO
BELIEVE YOU CAN BE TRUSTED WITH A GOVERNMENT-RUN HEALTH CARE SYSTEM??
Folks, keep this circulating. It is very well stated. Maybe it will end up in th
e e-mails of some of our "duly elected' and their staff (they never read anythin
g) will clue them in on how Americans feel.
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***[Sylvia Bokor Comments: For those interested in the actual foundations of cap
italism, I strongly recommend Dr. Andrew Bernstein's Capitalism Unbound: The Inc
ontestable Moral Case for Individual Rights. ***End comment]***
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