Wal-Mart’s Gas Problem

The way they fight them tooth and nail, you’d think Wal-Mart believes its eventual downfall could come at the hands of unions. But could there be another force at work, something evil that lives deep within the bowels of our planet, a nightmare that keeps Wal-Mart up at night clutching its pillows and sweating in its cheap Sam’s Club bed?

Expensive oil?

Admit it...you thought I was going the science fiction route. A vicious Balrog from Lord of the Rings that lives beneath the Earth’s crust and breathes fire. I guess you could make the leap to oil - it too has a black heart and is flammable, after all. And in his new book $20 Per Gallon, Christopher Steiner imagines an everyday world in which the price of gasoline (and oil) continues to rise (and rise...and rise some more), and the immediate impact that would have on our lives. The Oregonian has a sample:

$6/gallon: We will finally kill the SUV, allowing Los Angeles to emerge from smog and saving 15,600 lives a year from deadly auto crashes, since people will be driving far less. At the same time, revenues from gas taxes will plunge, causing roads and bridges to crumble, leading to higher tolls.
$14: “Wal-Mart killed by high cost of global transport. Mom-and-pop retailers return to Main Street. U.S. Factories revive.” The bad? “With driving cut in half and asphalt costs soaring, even toll roads shut down.”
$20: Mass biking and transit, including the nationwide high-speed rail network that will supposedly happen at $18 a gallon. Plus, 90 percent of Americans will live in cities. “The bad,” according to Steiner’s prediction is nuclear power will power everything, including cargo ships and polyester will be “too expensive for clothes.”

Steiner notes that as oil and gas prices rise, business models like Wal-Mart’s (heavy on cheap overseas imports, reliant on a driving/mobile consumer) will become progressively more unsustainable. Could we see companies like Wal-Mart lobbying against raising the Federal gas tax or a tax on miles driven? Could future rises in costs be behind Wal-Mart’s attempts to move into more urban areas? Check out an interview with Steiner on Michigan NPR after the jump, and then share your thoughts.

Posted by Corey Himrod on Thursday, June 11, 2009

Click Here for a Printer-Friendly Version