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Low Prices At What Cost?

At the cost of security at our nation’s ports. From the Wall Street Journal’s Washington Wire:

WAL-MART RESISTS efforts in Congress to dramatically tighten port security in wake of Dubai-ports furor. The company argues examining all containers, or even a fixed percentage of them, could impede shipping and boost costs.

But this paper from port security expert Stephen Flynn shows that shipping costs would be minimal:

The total cost of third-party compliance inspections, deploying “smart” containers, and operating a cargo scanning system such as Hong Kong’s is likely to reach $50 to $100 per container depending on the number of containers an importer has and the complexity of its supply chain. Even if the final price tag came in at $100 additional cost per container, it would raise the average price of cargo moved by, say, Wal-Mart or Target by only 0.06%. What importers and consumers are getting in return is the reduced risk of a catastrophic terrorist attack and its economic consequences. In short, such an investment would allow container security to move from the current “trust, but don’t verify” system to a more robust “trust but verify” regime. That would bring benefits to everyone but criminals and terrorists.

What are Wal-Mart’s priorities and what impact do they have on you as a consumer and a citizen?

Posted by Media Team on Friday, March 24, 2006

Click Here for a Printer-Friendly Version

COMMENTS

This goes to show that Wal-Mart, and the Walton family, cares nothing for America and only the money their family recieves and their stock prices. They only care about themsleves… by selling out America’s safety and buying more than 50% of their goods overseas.

John in Chattanooga, TN
Friday, March 24 at 11:19 AM

Sheesh, and I live near Oakland. Way to go Wal-Mart!

Hobo in Yolo, CA
Friday, March 24 at 12:28 PM

Well, the UAE would have done it cheaper. They even offered to install more detection devices.

What about the Chi-comms running the ports in CA?

Maybe Haliburton should do it! Hahahahaha!

Sooner JJ in OKC
Friday, March 24 at 12:43 PM

How do they not examine all containers?
This is a TRAGEDY!
So many news sites have shown how easy it is to get a bomb into the US?
How Dare walmart or anyone oppose our national security?
The Waltons should be ashamed of themselves!!!

Pete in Orlando, Fl
Friday, March 24 at 12:56 PM

Good point Pete. We need to stuff every possible means of getting a bomb here. Give us a proposal of how much it would cost and just what are the mechanics of doing it?

I agree, we need security.

If waiting lines in airpor security is any indication, can you imagine the line of ships going far out to sea as we examine everything?

Provide a solution. I’ll bet you could get rich and hire away all of these underpaid WM employees. Its a good business idea.

Sooner JJ in OKC
Friday, March 24 at 01:12 PM

Don’t slow down the goods coming in from China. You would be cutting off Walmarts main supplier! You don’t want to stop the flood of sweat shop goods that were made for only pennies an hour.

JM in USA
Friday, March 24 at 08:17 PM

Pete, being ashamed of yourself only happens if you give a damn, which the Waltons clearly do not.  Oh, wait, they do give a damn, about their disgusting lust for money.

Sooner JJ, if you are so against China, than why do you support Wal-Mart?  Also, I’m surprised that Haliburton ISN’T doing it.  No, their specialty is war profiteering, so I guess that they’re not interested.  No one is proposing something that ridiculous as trying to stop EVERY means of getting a bomb into the country.  That is impossible.  Besides, getting rich and exploiting something is not the goal of every person, and this is a bigger issue than someone getting rich, it affects all of us (oh, I forgot, this concept is alien to a lot of people).

JM, they will just accuse you of hating China, or something as equally ridiculous.  The trade status between the U.S. and China could be normalized, but that would make sense.  In the long run, America suffers and China suffers, but, hey, a lot of people will get rich in the process of screwing both countries, and that’s all that seems to matter.

Generic Wal-Mart Wageslave in Michigan
Saturday, March 25 at 12:58 AM

In fact, I think that I will get rich by becoming a pimp, a crack dealer, or a hitman.  I can get extremely rich by engaging in these activities, and this means that the activities are justified.  If you don’t like it, than don’t be a prostitute or a John, don’t smoke crack, and don’t do anything that gets you murdered.  It’s that simple, I’m not a bad person, it’s just that people need to take personal responbility and not do or be involved in these things.  In fact, if one of my ho’s is holding out on me, than I will sock her in the face, and she will deserve it.  If this statement/opinion makes you sick, then maybe you should consider your own philosophies, because what I just stated isn’t that different from many of the “personal responsibility” and “freedom” arguments on this site.

Generic Wal-Mart Wageslave in Michigan
Saturday, March 25 at 01:39 AM

I’ll say this again. The uproar on just the UAE and ignoring the Chi-comms is inconsistent.

I would love to see someone’s solution to scan every container and how to make it efficient.

Sooner JJ (AKA JJ) in OKC
Saturday, March 25 at 10:07 AM

Sooner JJ:

Instead of all your “foaming at the mouth” IN FAVOR of Wal-Mart, why aren’t you writing to your legislators in Washington and requesting this be done!  This is exactly what others are trying to figure out.  Exactly when did America lose the ability to manage and run its own ports?

Here’s the China WE all know and YOU love:

A Sharp Debate Erupts in China Over Ideologies
By JOSEPH KAHN

BEIJING, March 11 — For the first time in perhaps a decade, the National People’s Congress, the Communist Party-run legislature now convened in its annual two-week session, is consumed with an ideological debate over socialism and capitalism that many assumed had been buried by China’s long streak of fast economic growth.
The controversy has forced the government to shelve a draft law to protect property rights that had been expected to win pro forma passage and highlighted the resurgent influence of a small but vocal group of socialist-leaning scholars and policy advisers. These old-style leftist thinkers have used China’s rising income gap and increasing social unrest to raise doubts about what they see as the country’s headlong pursuit of private wealth and market-driven economic development.

REFERENCE: http://www.nytimes.com/2006/03/12/international/asia/12china.html

ScrewedbyWal-Mart in Anytown, USA
Saturday, March 25 at 10:21 AM

Capitalism means freedom. If you guys think the govt can “command” an economy you are joking. Only capitalism can create jobs, wealth, and prosperity for the most. Communism (socialism, fascism, whatever your word for the day) spreads misery evenly where only the people in charge do well...and even they buy products from other countries. If you think capitalism is wrong, then you have no hope in trying to bring other countries out of poverty.

That’s great you read the NY Times. How’s Maureen Dowd and Paul Krugman doing?

Sooner JJ (AKA JJ) in OKC
Saturday, March 25 at 11:07 AM

Sorry Screwed (why would anyone identify themselves as a nomenclature like that?)

If you like the Times, try reading “The World is Flat” by Thomas Friedman. He is a great Times columnist and his book opened my eyes on global business. In fact, all of you will have a better understanding of all the jobs going to India, China, Japan, Israel, just to name a few. He talks about Wal-Mart too and presents both sides. Its an easy read too and free at the public library.

Let me know after you read it. I want to know what you think about this NYTimes best seller.

Sooner JJ (AKA JJ) in OKC
Saturday, March 25 at 11:11 AM

Speaking of importing from offshore operations:
Here is an interesting article that shows what the consumer is supporting when they shop at companies that operate like Walmart.

Wal-Mart’s Shirts of Misery from Bangladesh
http://www.agoracosmopolitan.com/home/Business/2006/03/06/01005.html

Alex in Ontario, Canada
Saturday, March 25 at 07:01 PM

JJ in OKC:

As a matter of fact, I DID read Thomas Friedman’s “The World is Flat.” Why did you assume I hadn’t?  Why do you also think I would feel obligated to “discuss” this with you?

Have you read the blog thread title?  “Low Prices at What Cost?” And why are you mentioning Maureen Dowd and Paul Krugman?  I’m sure they’re impressed that you are worried about their welfare.

I will say this...I think Thomas Friedman could learn a lot about global economics if he’d buy Paul Krugman lunch sometime.

ScrewedbyWal-Mart in Anytown, USA
Saturday, March 25 at 08:59 PM

Cool. Now read Krugman’s textbook on economics. He actually comes across as conservative! I’ll buy you both lunch.

Sooner JJ (AKA JJ) in OKC
Sunday, March 26 at 12:26 AM

Will the REAL Sooner JJ in OKC please stand up?

So...are you siding more with the views of Krugman or Friedman?  You can’t have it both ways!  Are you a conservative Republican who espouses and champions Capitalism and a means of bringing “Democracy” to the world?  If so, why are you such a fan of Friedman?  He’s NO conservative?

My point is that Krugman gets it...and Friedman, although an entertaining and excellent journalist, missed the mark with his “flat earth” theory.  Yeah, sure Sooner JJ...it’s on the NY Times Best Seller list, that’s nice.

My suggestion when it comes to Friedman’s book is to read it only if you need to be a part of the “dinner party conversations.” For my money, I’d go with “‘One World Democracy” by Jerry Tetalman.

ScrewedbyWal-Mart in Anytown, USA
Sunday, March 26 at 10:44 AM

No problem Screwed. Krugman writes liberal opinions in the NYTimes, then writes a textbook with a conservative spin of economics. I am still scratching my head here.

The “both ways” cliche is so old. Common sense tells you to examine all sides even the nutcases like Krugman, Dowd, and Ann Coulter. I’ll check Tetalman’s book out.

What mark did Friedman miss? I thought he reported well that free trade and globalism actually insources more jobs than outsources. Friedman is pretty good, but the ultimate master of economics is Thomas Sowell. Now there is a guy who did not need civil rights or other government preferences to make it in life. He did it in the midst of good old fashion 1950s racism. Try “Basic Ecnomics”. This is an easy read.

There you have it screwed. Not only will I have it “both ways” in your opinion, but any way you want. So why the name “Screwedby”? Is this name going to define you?

Sooner JJ (AKA JJ) in OKC
Sunday, March 26 at 11:12 AM

Well Sooner JJ...I won’t give you an argument on Ann Coulter.  I think the Radical Right is even embarrassed by her.  She’s a bit too shrill for most people.

Mareen Dowd on the other hand is great!  She’s a babe!  I know I just might have offended her “feminist side” with that remark, but what the heck...anyone that calls George W “Bubble Boy” or Donald Rumsfeld “rummy” gets my vote.  I love her wit and writing style!

If you think Krugman is a liberal...what does that make Friedman?  He sure is NO Conservative.  Also...when you refer to our “trade” policies in this country...you should put it in quotation marks.  “Free Trade” is a myth.  NAFTA and CAFTA were both a bill of goods sold to the public.  Neither one of these crappy “trade” bills should have been passed.

ScrewedbyWal-Mart in Anytown, USA
Sunday, March 26 at 03:03 PM

Any way you want it. That’s the way you need it. Anyway you want it. I couldn’t help but interject with a Journey reference ;-)

Wondersnevercease in
Sunday, March 26 at 05:25 PM

Free Wal-Mart movies at tramlaw.info

Rick in Bentonville, AR
Sunday, March 26 at 06:57 PM

FREE MOVIE OFFER!

Thanks Rick.  Anyone that’s interested, should take you up on the offer for a free copy of Wal-Mart: The High Cost of Low Price, and when they are done with it...pass it around their neighborhood and community...sorta like a chain letter that never ends.

www.tramlaw.info

ScrewedbyWal-Mart in Anytown, USA
Sunday, March 26 at 10:54 PM

This blog represents a common tactic by WMW. They combine two different stories as if they are connected. The WSJ article talks about a proposal to increase port security. Walmart questioned the value of that proposal. If you are intending to spend a lot of money, you want to know whether it is effective. There is no point in spending the money if the measures are not effective. Then WMW throws in another proposal which Walmart was not considering. This other proposal by Stephen Flynn has some serious flaws.

Stephen Flynn may be an expert on port security, but his mathematical abilities are deficient. The article by Flynne has some serious errors. He stated that an increase of $100 would only increase the total cost of shipping of a container by .06%. .06% is equal to .0006. In order for the increase in cost to be .06% or .0006, the total cost of shipping a container would have to be $166,666. The value of the contents of the container averages only $60,000. I seriously doubt that the cost of shipping is equal to 278% of the value of the goods. Take for example a relatively high value item such as a 27” TV which might Walmart might buy for $150. A container will hold about 5000 cubic feet. Each TV requires about 8 cubic feet. The container can hold about 600 TVs. The value of the 600 TVs would be $90,000. The total shipping costs, according to the article would be $166,666. That TV would have to sell for nearly $450. The cost of the TV would be $278 even if the supplier gave it away and there were no further marketing costs. In short, WMW used a source with serious credibility either intentionally or unintentionally. It is my guess that WMW was smart enough to catch the error, but elected to use it anyway because it supported their proposal. It reminds me of the efforts by CBS to discredit President Bush by using forged documents.

If WMW believes that the .06% is correct, I would like to see their breakdown of the costs.

It is interesting that the system being proposed by Flynne is produced by the port in Hong Kong CHINA.

Paul moving in MS
Monday, March 27 at 12:07 PM

I can see Nancy Pelosi now: But if it could save just one life, it is worth it!

WMW cannot calculate any costs. They will not admit what WAGE would be sufficient. I keep asking. How much do you want? $10, $15, $30 per hour? How much health care do you want? $3 per hour more, $5 per hour more?

THEY ONLY WANT THE ISSUE. Damn the cost; they cannot calculate, just assume WM can afford it because they have too much of a profit.

Sooner JJ in OKC
Monday, March 27 at 12:53 PM

What I’d like to know is who in their right mind would just give away their name and address to that posted website. www.tramlaw.info You are just asking for spam/junk mail. It doesn’t appear to be registered by an organization but rather a private citizen.

Just when I think the union can’t possibly lose any more credibility I stumble upon this link while researching the Wal-mart film

http://quarantinewalmart.com/

These people dress up in hazmat suits “quarantining” Wal-mart managers within a conference area. Never mind the fact that it is illegal to prevent entry or exit from a building.

This demonstration brought to you by the good folks of the Ruckus Society in cooperation with ACORN.

http://quarantinewalmart.com/

You know what folks I think I’ve changed by position on health care. Goodness knows these chuckleheads could use some quality employer sponsored psychiatric care. ;-)

Discovered that Mr Greenwald distributes his film to churches . As far as I am concerned, on the basis of this action alone, Mr Greewald has lost all credibility. Nothwithstanding the credibility of the film itself. Mr Greenwald is utelizing religious channels to further his own interests.

More nonsense I found on Greewalds site:

“After allowing Campaign for America’s Future to reserve a billboard less than a mile from Wal-Mart’s World HQ, Clear Channel has refused to accept the ad, censoring the catch phrase voted on 13,000 times. Help protect our freedom of speech by demanding Cear Channel accept the billboard. (12/15)”

What these chuckleheads don’t seem to realize is that Clear Channel is a business, which as with most businesses reserves the right to refuse service to anyone for any reason provided that no racial/sexual/religious bias is the cause for said refusal. You do have freedom of speech in the capacity that you may create and display various slogans, however freedom of speech does not entail that a for profit company must facilitate the display of your slogans. The participants involved have no legal justification to demand that clear channel exhibit the offending add.

Mr Greenwald also apparently supports unsolicited spam. as evidenced by this quote

“GARTH BROOKS’ new music is only available at Wal-Mart. He is now spokesinger #1 for the company, even doing photo ops at stores. We’re pretty sure he’s a good guy, so send an email and encourage him to use his newfound influence to fix Wal-Mart. You’ve sent hundreds of emails, so they shut down the email address!! So email garth@walmartmovie.com and we’ll make sure he gets it. Sponsored by Young Progressive Majority.”

Greenwald’s sole interest is in “greenbacks” and the ironic thing is that he is doing exactly what he claims that Wal-mart does : exploiting people for his own gain.  A pity the union hasn’t wised up to this con. ;-)

Wondersnevercease in
Monday, March 27 at 04:38 PM

JJ - you nailed it!!!  To hell with what it will cost…

Do any of the WMWers have anything to say about the Flynne proposal credibilty issue?  As has been shown in the past on this blog, whenever WMW is shown to be FOS or supporting someone who is FOS, it gets real quiet!!

Michael D. in Connecticut
Monday, March 27 at 04:38 PM

I looked at that http://quarantinewalmart.com/ site.

This has to be a fraud. Pro-Wal Mart people did this site as a joke. Anti-WM people can’t be serious. Almost as if some student took FrontPage or OpenOffice, sloppily slapped a couple of web pages together, and saved it to a cheap ISP.

Oh geeze! I’m glad you showed us this Michael D. Now I can leave work knowing I laughed.

Sooner JJ in OKC
Monday, March 27 at 05:42 PM

Gee Wondersnevercease...you seem to have a problem if Robert Greenwald utilizes “religious channels” to “further his interests,” but I don’t hear you voicing the same concern with the Radical Religious Right and the Republicans who have hijacked one of the world’s 3 great religions (Christianity) to further their interests and agenda.

ScrewedbyWal-Mart in Anytown, USA
Monday, March 27 at 06:18 PM

Unfortunately (or fortunately depending on what side of the coin you are on) this appears to be a legitimate site which is sponsoerd by The Ruckus Society http://www.ruckus.org/ in association with ACORN (Association of Community Organizations for Reform Now) http://acorn.org/

The following is an arcticle which details their shenanigans.

http://www.democracyinaction.org/dia/organizations/ruckus/blastContent.jsp?email_blast_KEY=1023082

Excerpts below:

.."we headed off. “Do not panic!” blared the bullhorn, as 100 people in hooded hazmat suits, dust masks, and rubber gloves, descended on Bartle Hall. “Walmart has been classified by the Worker Health Bureau as a threat to public health and will be placed under strict quarantine until said offenses — among them poverty wages, lack of health care, gender discrimination — are remedied...” continued the bullhorn.”

“… The wrapper teams wove yellow caution tape (we had 5 rolls of 1000 feet each) in and out of the pillars around the front entrance, around nearby parking meters, even around some of the waiting busses and through the door handles of the main conference entryway. The warning teams paraded loudly outside the buldings advising the public of the global contagion of Wal-Mart-itis. Quarantine notices were posted about the perimeter.

What followed then was a cat and mouse game where Wal-Mart security tried to usher the Managers out various back and side doors as we tried to extened our quarantine perimeter to contain them, chasing down the empty busses as they tried to skirt around us.

The dramatic confrontation occured around 5pm, when several hundred Managers appeared in the main lobby. The containment crew got all riled up, pushing their large bright red “health hazard” signs up against the plate-glass walls and chanting “Quarantine Walmart.”

Eventually, a police cordon was set up and Managers were ushered through the crowd to the waiting busses. As they passed through the angry crowd of hazmat-suited activists, they tried to not make eye contact and were clearly rattled. Our bullhorn sounded: “Would all Walmart Managers please proceed to the decontamination station...so you can be served with a notice of quarantine and be brought in line with ethical business practices...” If one of those Managers didn’t confront their conscience that Sunday, it was because they didn’t have one.

As I stated before, I recant my position on health care. Clearly these folks are in dire need of employer provided psychiatric care ;-)

Wondersnevercease in
Monday, March 27 at 06:27 PM

I saw Xanadu...only because ONJ was so hot!

SNL could not do a better skit...nice props, hazmat suits. Yea, I wonder who was in charge of getting the equipment.

Come on anti-WMers, give us something of substance.

Sooner JJ (AKA JJ) in OKC
Monday, March 27 at 11:23 PM

Sooner,

Hey man, you need to go to college man. That’s where you’ll learn that evil corporations like Wal-Mart want to enslave and exploit us all. You see, anti-Walmart people get it, because they really care about the environment and stuff. You should read a book about how bad Wal-Mart and capitalism really are, then you’ll understand, ok?

Anybody who eats meat is a murderer!

Anti-WalMarter in CA
Saturday, April 01 at 12:51 AM

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