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Zoning Laws and Cronyism

The Wall Street Journal reports:

” … in scores of cases, large supermarket chains including Supervalu Inc., Safeway Inc. and Ahold NV have retained Saint Consulting to block Wal-Mart, according to hundreds of pages of Saint documents reviewed by The Wall Street Journal and interviews with former employees.

Saint has jokingly called its staff the “Wal-Mart killers.” ….

Supermarkets that have funded campaigns to stop Wal-Mart are concerned about having to match the retailing giant’s low prices lest they lose market share.”

In the most recent case, Supervalu, which operates nine Jewel-Osco grocery stores in the Chicago suburbs has hired Saint Consulting to block the construction of a single Wal-Mart supercenter.

Instead of revamping their own systems so they can compete with the retail giant, it’s more effective for Supervalu to block the store and retain their grocery monopoly.  Clearly they have no concern for their own customers.  Supervalu’s philosophy is simple, if they can’t beat a competitor’s prices, they strangle it with bureaucratic red tape.  Meanwhile the customer’s are left picking up the tab.

But not all of the blame belongs with the corporation.  In the end, they’re just doing what any business would do: attempting to maintain market dominance.  Their actions would be impossible without the local government.  Zoning law is like a plague ravaging our nation.  It represents the greatest deterioration of private property rights I can think of.  It asserts that while you may “own” property, you must ask the government’s permission to use it.  The same goes for building permits.  Theoretically, these permits and codes exist to keep us safe.  In reality, they’re abused by groups like Saint Consulting to keep the competition at bay.

Furthermore, Saint is only delaying the inevitable.  Eventually, a Wal-Mart, or some other competing store, will enter the area.  Crony Capitalism can’t keep the competition out forever.  But even if it could, the higher cost of living associated with Jewel-Osco’s cronyism will eventually cause wealth to leave the area for greener pastures.  Either way, without innovation this grocer will become the next buggy whip manufacturer.

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  • on Wal*Mart’s China web page!

    “Wal-Mart China persists in local procurement which provides more job opportunities, supports local manufacture industry and promotes local economy. So far, 95% of merchandising sold at Wal-Mart China store are local products by which Wal-Mart has established business relations with nearly 20,000 suppliers. At Wal-Mart, we treat suppliers as partners and would like to develop with them. In 2008 Wal-Mart won the Supplier Satisfaction published by Business Information of Shanghai for five consecutive years.”

    5% foreign in China…..

    That does not support American exports and American jobs…..

    Fifteen cargo ships pollute as much as 760 million automobiles.

    Remember what Lance Winslow wrote in that article “The Flow of Trade in a Global Economy”….dang! better yet…just take the time and read this ….”Now let us look at Wal-Mart again; you buy a product there, 6% goes to the employees, 10-18% is profit to the company, 25% goes to other costs and 50% goes to re-stock or the cost of goods sold. Of the 50% about 20-25% goes to China, a guess, but you get the point. Now then, how long will it take at 433 Billion dollars at year for China to have all of our money, leaving no money flow for us to circulate? At a 17 Trillion dollar economy less than 40-years minus the 1/6 they buy from us. Some say that if we keep putting money into our economy, it would take forever, but if we do not then eventually all the money flow will go. If China buys our debt then eventually they own us, no need to worry about a war, they are buying America, due in part to our own mismanaged trade, so whose fault is that? Not necessarily China, as they are doing what’s in the best interests, and we should make sure that trade is not only free, but fair too.”

    Also, think for a moment about George Washington….yes the man that is on the US dollar bill…. “Washington had been reelected unanimously in 1792. His decision not to seek a third term established a tradition that is now embedded in the 22d Amendment of the Constitution.”

    Take the time to read his farewell address after only eight years of serving his country and than ask yourself this….How do you think George feels being sent overseas in return for all that foreign so-call cheap items and being left in a foreign bank because the American worker doesn’t make anything for the foreigners to buy. Cheap items didn’t make this great union of 57…oops! 50 states the greatest place on the face of this Earth…..the American worker (union and non-union) did.

    You can’t have a strong country without having a strong currency and you can’t have a strong currency unless you keep it floating around within your 50 states. This is why the store with the star in the name puts 95% China made items in their stores in China….to keep their “yuan” in their country helping the nice people there. And with only 5% left for all the other 182 country’s that make stuff including the United States of America….that doesn’t produce very many jobs outside of China.

    Being an old person myself and knowing how it was back in the 40’s, 50’s and 60’s in this union of 50 states….I look at George each time I pull him out of my billfold and make a promise to send him out for items made in America so after floating around helping each hand he touches just maybe one day he will shake mine again.

  • It takes $9 billion a year in hidden taxes from all American taxpayers to clean the fish from ballast tanks of ships.

    Think about that the next time you buy a foreign item.

    The American consumer didn’t move Wal*Mart’s Global Procurement Offices to Hong Kong and than to China years ago….the corporate people in Bentonville, AR did.

    And Sam Walton didn’t take the hyphen out of the name and replace it with a big single STAR.

  • on Wal*Mart's China web page!

    “Wal-Mart China persists in local procurement which provides more job opportunities, supports local manufacture industry and promotes local economy. So far, 95% of merchandising sold at Wal-Mart China store are local products by which Wal-Mart has established business relations with nearly 20,000 suppliers. At Wal-Mart, we treat suppliers as partners and would like to develop with them. In 2008 Wal-Mart won the Supplier Satisfaction published by Business Information of Shanghai for five consecutive years.”

    5% foreign in China…..

    That does not support American exports and American jobs…..

    Fifteen cargo ships pollute as much as 760 million automobiles.

    Remember what Lance Winslow wrote in that article “The Flow of Trade in a Global Economy”….dang! better yet…just take the time and read this ….”Now let us look at Wal-Mart again; you buy a product there, 6% goes to the employees, 10-18% is profit to the company, 25% goes to other costs and 50% goes to re-stock or the cost of goods sold. Of the 50% about 20-25% goes to China, a guess, but you get the point. Now then, how long will it take at 433 Billion dollars at year for China to have all of our money, leaving no money flow for us to circulate? At a 17 Trillion dollar economy less than 40-years minus the 1/6 they buy from us. Some say that if we keep putting money into our economy, it would take forever, but if we do not then eventually all the money flow will go. If China buys our debt then eventually they own us, no need to worry about a war, they are buying America, due in part to our own mismanaged trade, so whose fault is that? Not necessarily China, as they are doing what's in the best interests, and we should make sure that trade is not only free, but fair too.”

    Also, think for a moment about George Washington….yes the man that is on the US dollar bill…. “Washington had been reelected unanimously in 1792. His decision not to seek a third term established a tradition that is now embedded in the 22d Amendment of the Constitution.”

    Take the time to read his farewell address after only eight years of serving his country and than ask yourself this….How do you think George feels being sent overseas in return for all that foreign so-call cheap items and being left in a foreign bank because the American worker doesn't make anything for the foreigners to buy. Cheap items didn't make this great union of 57…oops! 50 states the greatest place on the face of this Earth…..the American worker (union and non-union) did.

    You can't have a strong country without having a strong currency and you can't have a strong currency unless you keep it floating around within your 50 states. This is why the store with the star in the name puts 95% China made items in their stores in China….to keep their “yuan” in their country helping the nice people there. And with only 5% left for all the other 182 country's that make stuff including the United States of America….that doesn't produce very many jobs outside of China.

    Being an old person myself and knowing how it was back in the 40's, 50's and 60's in this union of 50 states….I look at George each time I pull him out of my billfold and make a promise to send him out for items made in America so after floating around helping each hand he touches just maybe one day he will shake mine again.

  • It takes $9 billion a year in hidden taxes from all American taxpayers to clean the fish from ballast tanks of ships.

    Think about that the next time you buy a foreign item.

    The American consumer didn't move Wal*Mart's Global Procurement Offices to Hong Kong and than to China years ago….the corporate people in Bentonville, AR did.

    And Sam Walton didn't take the hyphen out of the name and replace it with a big single STAR.