This Company Needs a New Business Model!

from http://www.truth-out.org/ August 3, 2011:

The world power companies are winning.

Let's imagine a company, say a global corporation like Wal-Mart.

Let's suppose that this behemoth retailer sells - among other consumer goods manufactured outside of the US - shirts made in China to unemployed textile workers in North Carolina whose factories were closed and whose jobs were moved overseas. After all, they can only afford to shop at this retailer because the prices are cheap, even though they are committing self-cannibalization by buying goods that they used to get paid to make, but now are made in foreign lands at great profit to the retailer.

Let's suppose that this retailer - again like Wal-Mart - has been showing flat sales at its stores open more than one year in America (the financial measurement of success for retailers) because consumer demand has stagnated due to unemployment and low wages. As a result, this global colossus of wealth accelerates its opening of stores around the world, where there is more opportunity for increasing sales and profits. It sees its future not in the United States, but abroad.

Let's suppose that this retailer pays minimum wage and relies on government subsidies for Medicaid for its workers in some states and even food stamps and other federal and state programs. Let's say this company also gets tax breaks and other incentives from local governments to open stores, at the taxpayer's expense.

Let's suppose that this corporation is among the wealthiest in the world, but employs a team of union busters to ensure that many of its employees are paid the lowest possible legal wages in the United States.

Let's suppose that the family that owns this retailer - again like Wal-Mart - benefits from tax cuts for the rich that could significantly help balance the budget - and the members of this family are among the wealthiest in the world.

Let's suppose that, due to campaign contributions to politicians and to its own virtual state department to nations such as China and India, this corporation's loyalties are to its own enrichment and not to the best interests of the United States or its workers.

Let's suppose that this company is not like Wal-Mart, but is Wal-Mart.

Because it is.

Mark Karlin
Editor, BuzzFlash at Truthout