Indiana

Walmart's Low Prices Bear a High Cost for America

For untold millions, Walmart is not simply a place to shop, but the place. Considering that the quintessential big-box retailer claims to, and often does, offer just about every conventional item necessary for the family at an affordable price, this should be none too surprising.

However, at what cost does this convenience come, and in the grander scheme of things, is what Walmart has to offer really convenience at all? The company’s ownership would most definitely say so, as would throngs of eager consumers. Many economists, social scientists, and former employees, though, have a strikingly different opinion. While one can choose to believe whichever side of the argument he or she likes best, where do the facts lie?

First and foremost, it should be known that every single American taxpayer is essentially footing the bill for Walmart’s mere existence.

According to Reuters, this is because, as a study published last year by the City University of New York’s Hunter College Center for Community Planning showed, company employees receive inadequate health insurance coverage and in turn are left with few other options than to apply for public assistance. Beyond providing a lack of medical benefits, Walmart’s presence in most regions, says the study, "Depresses area wages....pushes out more retail jobs than it creates, and results in more retail vacancies."

A Brief History of Securitization

Or....

Shadow Bankers Gone Wild

 

 

Preamble

Recently the New York Times published yet another article expressing surprise at the previous existence of securitized financial instruments prior to the last several decades. Securitized financial instruments, or actually securitization, has been around for at least several centuries, and whenever it becomes widely used a Great Depression, or economic meltdown, ensues.

This is the foundation for that bandied about term, “shadow banking.” Without securitization, there would be no such capability. With securitization, the process for creating debt-financed billionaires and multi-millionaires reaches critical mass.

Unfortunately, so to does the dramatic increase in unemployment and poverty.

Those so-called “experts” or “pundits” who continue misleading the populace with extravagant claims as to the recent origins of the securitization process have done a major disservice to society. This brief blog will attempt to rectify this situation.