The Washington Monthly has been writing about issues related to monopolies, corporate consolidation, and antitrust enforcement since at least 2001. If has often felt like a lonely quest. So it was with some considerable satisfaction that we looked in our daily issues of the Washington Post and New York Times this morning and saw editorials by Nancy Pelosi and Chuck Schumer indicating that the Democratic Party is finally getting our message. The party leaders wrote that the Democrats are going to “fight to allow regulators to break up big companies if they’re hurting consumers and to make it harder for companies to merge if it reduces competition,” and emphasized that they intend to start “cracking down on the monopolies and big corporate mergers that harm consumers, workers and competition.”
Last October, Editor in Chief Paul Glastris put together a comprehensive recap of our magazine’s greatest hits on these issues. He noted that we ran articles starting in the first year of the younger Bush’s administration by Karen Kornbluh, Nicholas Thompson and John Podesta about how telecom monopolies were crushing competition in the broadband market. In 2004, we published a piece by CNN founder Ted Turner explaining how the broadcast and entertainment industries were rapidly consolidating, making it impossible for a younger generation of media entrepreneurs to get a foothold. Here are some of the other pieces that Glastris identified:
In 2010, New America’s Barry Lynn, author of the book Cornered, and Phil Longman published a seminal Monthly cover story revealing that virtually every industry sector, from banking to beer to eyeglasses, had become similarly controlled by one or a few big corporations and that this locking up of markets is a major, under appreciated cause of the long-term slowdown in job growth. Lynn and Longman also made clear that consolidation was not some natural occurrence but the result of a deliberate strategy by the Reagan administration to all but end antitrust enforcement, a policy the next four administrations, to varying degrees, continued.
Subsequent pieces in the Washington Monthly by Lynn, Longman and others connected with New America’s Open Markets program filled out the picture. They showed how strong antitrust enforcement beginning in the latter New Deal years set the stage for four decades of strong economic growth. They explained how monopolized markets threaten unions; how growing monopoly power has warped the airline and hospital sectors; and how U.S. entrepreneurship, once thought to be America’s great competitive advantage, has in fact been in decline due to consolidation. Finally, they demonstrated how consolidation is driving the growing regional inequality of America, with half a dozen big metro areas, mostly on the coasts, gobbling up all the income growth and corporate headquarters while smaller metro areas sink into relative decline despite their best efforts to compete.
More recently, we’ve run a piece on how conservatism can make itself great again by rediscovering its historic hatred of monopolies, another linking the decline in black business ownership to reduced enforcement of anti-monopoly and fair trade laws beginning in the late 1970s, and I had a piece in the latest issue of the magazine on How to Win Rural Voters Without Losing Liberal Values that emphasized the need to reinvigorate small-town America’s economic vitality by utilizing greater anti-monopoly regulation.
Maybe our sheer persistence has finally paid off, but other factors certainly contributed. Donald Trump’s shocking strength in rural and small-town America won him an Electoral College victory, indicating a level of stress in those communities not sufficiently recognized by the Democratic party leadership. And new post-election polling came out that validates what we’ve been saying, which is not only that these issues are of concern to the American people and that they understand them better than they are often given credit for, but that there is real political potential here. In a memo from Geoff Garin of Hart Associates Polling, some of these numbers were spelled out:
As Senate and House Democrats begin to roll out their new Better Deal Economic Agenda, a review of recent public opinion polling shows that the central themes and frames that are at the heart of this agenda match closely with the experiences, values, and priorities of American voters today. Moreover, the Democratic policies related to curbing excessive corporate power that are being highlighted in the first day of the rollout have real resonance with voters and are strongly supported by a significant majority of Americans.
For example, fully 79% of voters in Senate battleground states agree that, “the rules of the economy today are rigged against average Americans, and America’s working families need a better deal.” Eighty-five percent (85%) of those who voted for Hillary Clinton agree with this statement, but so do 74% of those who voted for Donald Trump (43% of whom strongly agree). Indeed, more voters in the battleground states agree with this critique of the economy than a critique that says “the problem with the economy today is a big government that spends too much, taxes too much, and puts too many burdens on businesses.”
What’s remarkable about these numbers is that the Republicans have been hammering on excessive government spending, regulation and taxation for decades and yet the American people largely reject that in favor of a rigged system explanation for their economic problems that neither party has been hitting with any consistency or sustained broad focus. To be sure, we’ve heard some rhetoric from candidates like John Edwards, Barack Obama and Hillary Clinton, and Bernie Sanders emphasized the rigged nature of the economy while focusing more on banks and billionaires than antitrust and antimonopoly policies. The message Sanders sent is possibly still fresh, but you can see that it has resonance:
Similarly, a large majority of battleground state voters respond favorably to a statement of the premise and direction that define the Better Deal Economic Agenda, transcending partisanship even when the statement is explicitly described as coming from Democrats:
”Too many families in America today feel that the rules of the economy are rigged against them. Special interests have a strangle-hold on Washington—from the super-rich spending unlimited amounts of secret money to influence our elections, to the huge loopholes in our tax code that help corporations avoid paying taxes. The basic bargain that hard-working men and women can keep a good job, make a decent living, and provide for their families is no longer attainable for too many people. But it does not have to be this way. If the government goes back to putting working families first, ahead of special interests, we can achieve a better deal for the American people that will raise their pay, lower their expenses, and prepare them for the future.”
In the red states of Indiana, Montana, Missouri, North Dakota, and West Virginia, 73% express a favorable reaction to this statement of Democratic economic thinking, as do a similar proportion of voters in the purple states of Florida, Ohio, Pennsylvania, and Wisconsin. Support for this Democratic approach withstands Republican criticisms that it would lead to bigger government, higher taxes, and more interference with free enterprise—a contention that only three in 10 voters find to be convincing.
On the specific issue of too much corporate consolidation, you may be surprised to see how strongly it polls:
National polling also shows the breadth of concern about excessive corporate power and its impacts. By two to one (67% to 33%), for example, Americans believe it is a bigger problem that “huge corporations and billionaires are using their political power to reduce competition, keep wages low, and get special tax breaks” than that “government is imposing too many job-killing regulations on businesses and taxing people too much.” Indeed, 86% of voters agree that, “our economy is increasingly dominated by a small number of very large corporations,” and most voters believe this leads to consequences that often affect them personally. Fifty-seven percent (57%) say it is true that President Trump and Republicans, “are driving up prices for consumers by allowing a few huge corporations to dominate our government and economy.”
We often get pushback from liberal-minded people that Trump voters are out of reach, motivated more by fear and hatred than economic self-interest, and too unsophisticated to respond to wonkish talk about antitrust enforcement. But these polling results indicate that they understand and that they figured out the problem with corporate dominance of the marketplace long before Pelosi and Schumer did.
Whether the strength of our arguments finally broke through or the polling numbers were too clear to be ignored, the Democratic leadership has finally gotten our message. And that is vindication enough for us, at least for now.
Booman!!!
Do you really believe that this Pelosi/Schumer attempt to co-opt the Sanders/Warren wing is serious??? After decades on the take from Wall Street and Big Corp?
Please!!!
The only way that the Dems can truly change is to get rid of these parasites.
Until then?
Just more shape-shifting.
They are still the same anti-human aliens that they have proven themselves to be over the course of their weaselly careers.
They will never change anything but their costumes.
AG
Depends on what you mean by serious.
I mean, you’re not.
But co-opt is a bit lazy in this case.
Learn might be a more respectful (to Bernie) word.
But Bernie never got this. All he got was that people were getting screwed. How and why they were getting screwed were not his areas of strength. And they still aren’t.
I’m not serious?
Just another clown?
We shall see.
Won’t we.
i think that this little dance from the DNCers will fail just as did HRC. It’s just another public/private hustle….a “wink, wink, nod nod” to the money people. They will run this game and then prop another Obama-level front man (or woman) up there…if they can find one that good at the hustle (Probably another “smooth [Ivy League hustler] with impeccable do-good credentials and vacuous-to-repressive neoliberal politics.”)… and once again cooperate in rolling the loaded electoral centrist dice.
The Dems have quite deservedly lost all trust from the working classes…including minorities…and a whole generation of millennials of all races. Only real change will win them back, and without them they will continue to fail.
Watch.
AG
P.S. You write:
What he didn’t get was how to maneuver through the corrupt maze of the Democratic party well enough to win the nomination. “How and why” people were getting screwed seems to have been presented quite clearly in his campaign. Had he been elected he would have faced the same sort of massive media resistance that Trump now faces. Different caveats and tactics, same aim…to make sure that the current corporate ownership of the U.S. government remains in total control.
So it goes, at least until a real, non-solvable-by-economic-trickery collapse happens…like the late ’20s collapse or something even worse.
Until then?
Bupkis!!!.
Bet on it.
You didn’t yell at your toddling son because he was a lousy sprinter, so…
Never mind.
Cynicism is my enemy. Thus, you are now my enemy.
The one thing you have (mostly) right is that a President Sanders would have faced institutional resistance to his very existence in the White House, and lacking enough allies or support, he would have been hobbled in Congress and assaulted in the press and from elements within the Intelligence Community.
This was high atop my reasons for believing he would not be a successful president. He got my vote only because I knew it was a vote for the convention only. He was an incomplete messenger, both because he didn’t “have what it takes” and because his message was only partially useful and accurate.
On the contrary, I believe that realism is your enemy. Thus…sadly…I suppose that yes, I am now your enemy.
It is not “cynicism” to distrust serial hustlers and liars like those who write copy for the DNC.
It’s just common sense.
The Dems have a lot to prove before they win back the disaffected voters of this country.
Myself included.
So far?
No proof.
No proof?
No votes.
Watch.
AG
you might do better by asking me what I think the obstacle are, how I assess the level of cynicism on the Democrats’ part, etc.
then you could learn about my skepticism.
but you don’t do that. you just take a shit on the kitchen floor and call it insight.
You titled this piece Dems Finally Take WaMo’s Advice.
There is little or no wiggle room in that title, Booman.
Had it been titled something like “Dems Seem To Be Taking WaMo’s Advice”…with an article beneath it minus phrases like “…the Democratic leadership has finally gotten our message”…I might have been more charitable.
AG
You are right that pols like Schumer are the problem. A better avatar of corporate money in centrist politics cannot be had. You are wrong that casting them out is the answer.
Its simple: The center can’t hold if it goes to war with the left. The only option is to unite against the right. But for the center-left to attract the voters, it’s going to have to embrace the anti-corporate policies and messaging that this article talks about.
So, the proof of actual movement in this direction is not lipservice like this “Better Deal”, but when national-level Dem pols explicitly cross the center-left donor class on these issues. We will have to see a real Democratic presidential candidate campaign on radically tamping down corporate and monied power and leveling the field for the little guy.
The best scenario is for this to happen internally to the party, rather than a Bernie or Trump type insurgent taking over the party. And there’s hope, because there’s lots of evidence that what happened last November points to an existential challenge to the center-left.
And trump’s success shows that party backing is still far more important than just money. It was repub pols coming home to roost that put him in the game, even if it was Comey who got him over the top. He had shit organization, poor funding, but the right message for the right people in the right places, and enough of the mainstream pols of his party to get it done.
I really think the center-left has the right pieces for a big comeback, but they need to act boldly, and opening the fight against the forces hurting small-town america is the only bold move open to them, really.
Then, there is the alignment between the problems of small-town america and of inner-city/minority america, which have many of the same solutions. This is what repubs have been succeeding at wedging apart for the last century. Healing this schism is the biggest advance the center-left, and our nation, could possibly achieve.
Gilroy has always seemed 90 degrees off axis to my way of thinking. Sometimes the lines cross, and we think the same thing, but its always headed in a different direction.
He seems to think that the major alignment in society is people with power against the powerless. And that’s an attractive idea, if your heart is filled with incoherent grievance.
But I think the alignment is between those who like to punch down and those who don’t, and those who say “f*ck your feelings” vs those who would do unto others as they would have others do. And I think this somewhat aligns with our major political parties. Democrats and (even) Dem pols are folks who tend to act altruistically; making decisions that benefit others for the greater good, even if they don’t benefit themselves immediately or directly. Ipso facto, there should be substantial numbers of “donor class” or corporate democrats who can get behind the anti-corporate politics if they see that it can benefit the party and the nation.
You write:
Yer dreamin’. Sorry, but there it is. I have no doubt that you are like that, and so still are a goodly number of other Dems. Good, college-educated, middle class people who can still afford not to “… benefit themselves immediately or directly” by their political choices. But…that is not a working majority in this system today. As far as I can see, it never has been a working majority, and even that group is shrinking rapidly as the economic system changes. The Democratic party that has won national elections has done so through the support of working class people…of all races…who simply cannot afford to be patient. FDR, JFK, Clinton I, Obama…all skewed their campaigns (honestly or not so honestly) towards the have-nots and the just-have-enough-to-survives.
Sorry.
The system has changed. If the Democratic party doesn’t change with it…in response to the new normal of “Not enough to go around” of the 99.99% and the “We got ours. With ice cream on top!!!” of the .01%, it will fail.
Yet again.
Watch.
AG
Could be.
I hope you are right.
But I think that you are not.
Too much corruption in the entire system.
Sorry…
AG
It would be nice to believe they actually meant this and would vigorously pursue such policies if given the chance, but there is entirely too much “jam tomorrow!” about that post. It’s always “jam tomorrow but somehow never jam today.” All the donor class will be apoplectic about implementing this – with possibly some exceptions. But, what do you suppose that the response of the silicon titans will be if the Democratic party starts seriously enforcing anti-trust laws?
“Oh, my Lordy! Pass the smelling salts, there’s going to be some heavy fainting out there among some donors!”
“I mean Senator, are you saying this new anti-trust initiative of yours will apply to Disney? We at Disney would be profoundly unhappy if that were to be the case.”
KABOOM! is putting it nicely.
The “jam today, jam tomorrow” is a common British political meme, especially in the Labour Party. Now that I realize it comes from Alice; that makes so much sense.
Accurate.
But also why it was so hard to get a commitment to this. Have you seen Pelosi’s district?
Maybe some people think Democrats will work to stop mergers because the Obama administration was the most aggressive in recent history on stopping mergers?
We’ve become too inured into thinking that even when leadership answers a long-overdue call it’s more powerful to criticize it than put our shoulders and minds behind it. The people are what will force action into these words.
Today is a perfect example of power. McCain is flying in which will give an emotional punch to help McConnell’s vote to move forward with his health care bill. Call Senators…push hard against this…today.
It’s a two-fer and more. If McConnell has to keep working there will be no recess and Trump won’t be able to recess appoint a new AG!
true, and needed to be said.
also, we’re aware that our opponents on the left are as powerful as the ones doing the bidding of the tech giants. the left is increasingly invested in fighting this war on terms it will lose.
Senators don’t give a crap what you want unless it’s accompanied by folding green. Preferably in an envelope, but a campaign contribution will do.
I’m a small business co-owner in Appalachia, so a couple of points.
Yes, big box stores like WalMart and Lowes has hurt our business by offering items at prices not available to us, at prices due to economy of scale. I can buy 5 at one price and they can buy 5000 at another. As a result they close or limit options in rural areas.
Another factor not mentioned in this post is the increased communications options in rural areas. Options not there 20 yrs ago. Highways and Internet mean they are not limited to just what the local emporium offers; one again at very reasonable pricing.
On the plus side, being small means being agile. You can shift quickly toward an item. Also being part of the community means you can offer credit to people who don’t partake of the national credit industry. Many areas of the country are still a cash economy and if the Fed Govt had not forced bank accounts on SS receivers, a large portion of people in rural areas would not use banks.
So the emphasis against monopolies is nice. Small town businesses were hurt worst by WalMart and their tax, wage, and purchasing advantages. If the states would not supplement their profits by offering tax give aways and health/food benefits to employees; that would help. But, they aren’t the only issues facing small business. And don’t believe the GOP hype about taxes and regulations.
And…this is important…. don’t define and set programs for “small businesses” when such definitions have been jiggered to mean 500 hundred employees or less. To anyone’s mind (except the CEO of Chase) 500 employees is a Big Business.
Ridge
Biggest flaw in Pelosi/Schumer’s initial messaging is that it’s still consumer/worker-based, which makes sense because there’s numbers in that group.
But it undercuts the real message which is that this policy helps small businesses/producers directly and everyone else only indirectly.
We need to get people to think of themselves as producers rather than workers, as citizens rather than consumers.
And this won’t work if that’s not a huge part of the messaging push, over decades.
You should take a look at James Livingston’s work on consumerism, investment, and the corporate form as a rejoinder to this perspective. He’s an economic and cultural historian at Rutgers who is both iconoclastic and absolutely brilliant. In particular, he would argue that the citizen / consumer binary you are advocating makes no sense following the turn toward marginal utility in economic thought and all that followed it, including the emergence of the corporate form, Keynsiansm, and the rise of consumer spending as the basis of political subjectivity. I think he’d also argue that one of the basic political problems of our time is the way in which new wealth is directed toward investment in increasingly abstract financial mechanisms and therefore both outstrips wages and leads to massive bubbles; the problem, then, is not too much consumerism but rather not enough of it.
I don’t think it has to be an either/or situation. Yes, in principle, it would be great if everyone was a producer but you really only find that situation obtaining in a rural, subsistence, agricultural economy. I think Booman’s issue is the passivity that comes from perceiving oneself/being perceived as a consumer rather than a citizen producer. If you don’t have a real stake in the economy, why participate in the democratic political process. I think the GOP is quite happy to see a politically passive, consumerist economy because it facilitates an authoritarian takeover, which clearly is their long-term strategy. I think Booman’s point is that vigorously enforcing even existing anti-trust legislation would create new, competitive producer spaces, which would lead to more hiring (and workers are producers too, after all). Of course, the Democrats have to first take back power before they are all but exterminated and, secondly, even if they do, will the increasingly very conservative federal courts uphold enforcement actions?
Not sure about where you live, but in small town Alabama I have personally seen that people have these devices called smartphones and use them to order goods from a place called Amazon. If Walmart were to disappear tomorrow, small stores would still not be free to jack up prices. Not by much anyway.
If you can show that Walmart offers lower prices in an illegal or unfair practices manner (predatory pricing) then more power to you. I have been in Walmart in small town Alabama and it was the biggest store besides Lowes, and Publix. The prices were not noticeably different than from Chicago Suburbia. Economy of scale is not unfair. It’s just mathematics.
Walmart, Amazon, and similar modern “monopolies” (in the loose sense) mostly work by exploiting producers, not consumers. In economic jargon, they’re monopsonists rather than monopolists. Since basically everybody is both a producer and a consumer it sucks the same amount of life out of the economy, but it’s not so obvious to typical people and it’s not actionable under recent interpretations of antitrust law. (The Supreme Court ruled a monopoly is a problem only if it directly harms consumers via higher prices. )
Another tactic is exploiting information limitations of consumers. Walmart carefully studies which products people compare prices on and has low prices and flashy sales on those while keeping ordinary or even high prices on the rest. Shoppers don’t notice, because Walmart has spent billions on tricking them.
Back in the ’90s before Sears got sick (from self-inficted wounds), I read a piece in Wall Street Journal (they had real news before they jumped the shark) about easy returns. They quoted an electronics manufacturer protesting. He showed the reporter a returned remote that had obvious tooth marks (dog?) on it. The manufacturer’s exec said that he had protested the return to Sears management but was told, “Do you want your products in a thousand Sears stores coast to coast or not?” Sears and K-mart (then independent) had super-easy return policies that attracted customers. They shoved the costs onto the producers who couldn’t reciprocate because they had competitors and it was all hidden behind the Kenmore (or whatever) label.
Today, I’m sure Amazon has that power and probably Walmart does to.
LL Bean is altering their return policy for the same reasons.
Some stores are fighting cost comparison by blocking competing store links in their WiFi systems. Such as Home Depot blocking access to Lowe’s websites, Best Buy blocking Amazon, etc…
Of course this only works if you use their WiFi, which is why you are also seeing retail in store WiFi coupons.
R
While most everyone is both a producer and a consumer, quite a large proportion of the goods for sale in the Big Box stores are produced outside the country so the hit on producers is a lot bigger in China, Mexico, SE Asia and other developing countries than it is here EXCEPT where it can be shown that foreign production of the same goods is displacing current domestic production. While that was true in the ’70s to early ’90s, beginning with textiles and basic steel and then whole consumer manufactures, our economy has a very different structure nowadays. In addition to enforcing anti-trust, we need an activist federal government that is providing incentives to create new industries or support the further development of new critical industries, especially, in my opinion, renewable energy and energy efficiency. Needless to say, the GOP will never do this.
you’re thinking of products instead of services and retail. Think pharmacies, small grocers, hardware stores, commercial real estate outfits, commercial real estate builders, local banks, card shops, sneaker stores, the local A/V outlet, etc.
There’s a reason you still see furniture stores, and that’s because it takes up too much floor space to be worth monopolizing.
Really? You mean everyone in Ala. has a great credit rating and credit cards or they have linked their bank accounts to PayPal to pay for their online purchases. Does everyone have bank accounts? They must be flush since with tax liens, back child support, back alimony, medical bills, bankruptcies, etc…. all looking for money and bank accounts are the best way to attach it; which is why some don’t want an account. Then there is the whole “don’t trust banks thing” and “Don’t like Credit Cards, Cash Only” purchasing; which is hard to do online- unless you are into BitCoins.
Of course Amazon is looking at brick and mortar
http://fortune.com/2017/04/28/5-reasons-amazon-physical-stores/
as 90% of retail purchases are in physical stores.
While not legally predatory, Walmart’s aggressive offshore purchasing has been estimated to have eliminated 400,000 manufacturing jobs. I can to attest that the 90’s trade agreements killed textile plants in southern Va/northern NC.
http://www.epi.org/publication/the-wal-mart-effect/
Not to mention wiping out local retail within a certain blast radius. We’ve discussed the loss to civic culture that replacing local business with Corporate HQ policies. Then when all locals are gone, they close the WalMart, as they did in McDowell Co. even more trouble.
https://www.theguardian.com/us-news/2017/jul/09/what-happened-when-walmart-left.
But could go on and on and lunch hr is ending. But remember, all the box stores, Amazon, etc… only exist because of the increased ease of transportation that the goods can be easily shipped to the stores and home. Without that, the model doesn’t work as shipping costs would be too great.
R
Your last point is a very good one. The case can be made that the single most important invention that enabled globalization was the invention of the shipping container in the late 1950s. From that point on, a decentralized, domestic manufacturing base gradually disappeared.
I think the computerized logistic method is the key. Knowing when to order, where to get it, how to ship it efficiently has made the great transformation. When all done on paper, you could only reach a certain level. Once digital, then the larger ships, containers, freight flights, overseas factories accepting orders, US distribution centers, massive freight terminals, warehouses, UPS loading buildings (which I’ve worked at 3AM) …all streaming across screens. I once spoke to a sales rep about a replacement part for a item. Came from Brazil in 4 wks. Clothing items from China off eBay, about 2-3 wks.
But there are trade offs. One of our vendors went full import. Great product at good prices. Another we bought from in their town remained US made. 2008 downturn, the US maker could slow production, 4 day weeks, etc… The importer couldn’t as they designed and ordered their products 6 months to a year in advance. Went belly up. Many, many companies got caught in that bind.
WalMart, Amazon, and others are at the geo-political mercy of others outside the direct influence of their paid Congressmen.
R
R
Obviously not and I didn’t say they did. But it’s not “Green Acres” either.
A surprising number of poor people (mostly young) have smart phones. From what I see, mostly Samsung, they don’t have money to waste on iPhones.
No they don’t have credit. They have prepaid debit cards.
Why would Walmart set out to destroy competitors and then leave the area? Makes no sense unless even with economy of scale there is no market in which case those small higher cost competitors would eventually have gone under anyway.
I’m aware that my post might strike a nerve in you and I apologize for being insensitive. See my other post for a more dispassionate take: http://www.boomantribune.com/comments/2017/7/25/2958/18263/49#49
I hope you take it to heart and it gives you an idea how to use the advantages of a local agile merchant to your advantage. remember the mammals outlasted the big dinosaurs.
Wal-Marts are failing because they bankrupted their customers, including their low-level employees and they lost their competitive advantage is many markers to online shoppers.
Yes, they gutted the communities and then left them with nothing, or are about to.
The luckier communities are those where a local chain is able to lease the space from one of the Walmart outlets. That’s happened in my region in smaller towns that unceremoniously closed those towns’ Neighborhood Market outlets. Those luckier communities will still have groceries and a pharmacist nearby. The unlucky communities become essentially food deserts.
WalMart themselves have gone past their original roots to become the “discount” super store with everything. A “Hills” or Murphy Mart (from the 60’s and 70’s) on steroids. But as you say, they have depleted the local economy enough that many are staying away. Even with low prices the trip and inevitable over spending hurts their core base. I repeatedly hear customers say, “I have to go to WalMart, but I hate going there.” Its no longer fun. 3 or 4 out of 15 registers open. Shelves not stocked properly. Employees complaining about hours to each other in the isle.
As stated in other threads, the “Dollar” stores are building and opening stores to take over the niche dry goods, sundry and light grocery business for those on fixed incomes or at the bottom of economic ladder. I went in the other day for bar soap and bottle brushes and spent $3.00. Very hard to do in a WalMart or Sam’s.
If the company did not receive such govt support, it would not have grown as it has and the economies of scale argument would be lessened.
$153 billion to subsidize profits for WalMart and McDonald’s. Think how else that money could be spent. Take it away and some of their pricing advantages go as well.
https:/www.washingtonpost.com/posteverything/wp/2015/04/15/we-are-spending-153-billion-a-year-to-su
bsidize-mcdonalds-and-walmarts-low-wage-workers?utm_term=.5af05c68fecb
R
Think about who sat on walmart’s board of directors.
“Why would Walmart set out to destroy competitors and then leave the area? Makes no sense unless even with economy of scale there is no market in which case those small higher cost competitors would eventually have gone under anyway.”
WalMart and their ilk are not natural outgrowth of market forces but politically supported constructs who follow the pattern as Standard Oil and other historical organizations which strived to remove competition in a sector or geographic area. Their pricing is based on govt support for overhead and low/no tariffs on imported goods. Remove those and the price advantage, even with economies of scale, decrease.
With the current modes of distribution and transportation; small retailers can compete at a certain level. Not the huge variety but in niche or specialty markets. And as we have seen, Dollar Store organizations are expanding into areas deemed too small or remote for WalMart, which is contracting.
I’m not offended, but while the online economy is prevalent, it is not the be all/end all. Yes we will be going online as well, but the core business will be brick an mortar and in much of America, online is not practical or desired for certain products. Nor is delivery of those products by 3rd parties usually available (at least in our area). Pushing something to the end of a trailer and onto your driveway is not the way to handle merchandise. Amazon has found its limits and if a Postman or USP driver can’t handle it, then its not a good prospect for online sales.
R
We have a local dollar store. it’s got garbage for sale. A rip-off.
Any company can import goods from overseas. In most cases there no longer is a domestic supplier. Walmart was deceptive when they claim everything was made in the USA but look at the labels in Sears and K-mart. Menard’s and Home Depot.
Much of what you say about the incestuous relationship with the government is true, but not unique.
I really don’t see the difference between Walmart and Sears, except that Walmart has goods that customers want and sears doesn’t. When I drive to the closest Walmart, I have trouble parking and the aisles are packed with customers. Those fifteen registers are all manned and have long lines. When I drive to the closest Sears, I can park in the first aisle and I wander around a huge store with no other customers or only two or three and a single bored salesperson at the checkout. They don’t even station anyone in electronics or appliances anymore.
Dollar Stores have the same vendors as WalMart, just only 2 or 3 models instead of 10. Some name brand processed food and a little dairy and you have a mini-super store.
Sears built up their business before the wide distribution of credit cards so they carried their own paper, WalMart doesn’t. Offered appliances and large ticket items on charge as well as repair and parts system. Tools still a big business.
They started to decline with the owner of KMart when he bought them. Turned the company into a real estate holding company based on the land for all the Sears and KMart stores. Would use that and cash flow to leverage other purchases. 2008 downturn wiped a lot of the value out.
R
No food but out of code junk food at the Dollar store I went to.
Times change. Business has to evolve or die. I remember two small grocery stores when I was a kid. One was only a block away and the other was two blocks away the other direction. We didn’t have a car so the short walk was important. The nearer store also offered “the bill”, informal personal credit. They served their purpose and we shopped there off and on after we got a car, but more and more we shopped at supermarkets. It wasn’t only price which, except for sale items, wasn’t significantly lower. It was wider selection.
IMHO the reaction of book stores to Amazon has been all wrong which is why they have been dying. As they were pressed, they tried to branch out into music and games, leaving less shelf space for books. Music stores and game stores ate their lunch. They tried to pull back on titles, concentrating on best sellers. Fatal mistake. Brick and Mortar can’t compete on price and that’s all they had to combat Amazon. Who can’t wait a week to get the latest Jackie Collins? I started shopping at Amazon, not for the lowest prices, but because I buy niche titles and genres. The stores that I observed lasting the longest offered specialty books and mixed new/used. The biggest SF store in Chicago went out of business and I miss them, but the neighborhood got too rough. I didn’t feel safe parking there. But it was rightly famous, not only for breadth of coverage but for the owners’ knowledge of the field. They would recommend authors and books, or discuss with you what was collectible and what wasn’t. I notice here in the suburbs that Half-Price Books seems very successful, opening new branches and having lots of customers. They specialize in used books and publishers’ remainders. Yes, you can buy used on Amazon, and I have, but I prefer to buy a used book that I can see, open and evaluate. Most importantly, SMELL. But bookstores will never be as big as they were.
Netflix, Amazon, Hulu and such have pretty much destroyed the video stores, but was that nefarious?
Auto parts stores and tire stores are going to remain because when you need a battery or a fuse or oil or a tire patched, you need it NOW, not two days from now. In the case of the tire and probably the battery, you also need someone to put it on for you.
Hot pizza from Amazon? Cold beer? I think not. Restaurants will stay and so will supermarkets, although supermarkets will lose some staple business. They are fighting back with in-store hot food and even wine and beer (Mariano’s [Kroger] in Bloomingdale IL). Samples are always good before buying and do you want cold milk delivered by Amazon? Milk delivery is another dead horse and buggy business.
Back to the main point, do Dems really want a Luddite agenda? “We’ll kill Walmart and Amazon so you can only shop at the country store”?
If the Dems want votes, they need to go after Comcast, Verizon, Apple, Goldman Sachs, airlines, utilities, and Facebook.
and Google, which is like their parents at this point.
There aren’t currently any votes in restraining Google. Per modern practice, they exploit sellers, and pretty much only people in the advertising business hate them. Someday they will be a huge problem, but not yet.
The listed companies are ones that actually do use monopoly power to extract higher prices from consumers (and/or saddle them with lousy service) and they are widely hated. There are actually votes in going after them, today.
not sure people hate Apple or Facebook
I wasn’t going to nitpick the list. Apple has fans that really like it and nonfans that look down on it, but not many haters because you don’t have to buy Apple if you don’t want to. Facebook does have a lot of people who hate it (including me) because of its privacy policies, intrusiveness, copyright issues, etc.
I agree with all the negatives but you’re not getting people to get on board with gutting either company or breaking them etc.
Apple is slowly going to make itself irrelevant again if it can’t find a way to be innovative and not just marginally improving their phones
The problem most people have with FB is privacy but that’s true with any social media company. Plus it’s a free service to nearly everyone so it will be hard to show harm.
I know you weren’t really including these 2 in your list, just piggybacking on someone else’s list but we’re going to have problems breaking up any of the bigger companies for a variety of reasons each one of them different.
It sounds nice but I don’t think it will work.
It’s better than nothing.
And that is about all it is.
I do not regard it as a serious attempt to address exploding inequality – from a policy perspective arguing that it is is rather nonsensical
It’s kind of funny. There is all this talk about the mystery of winning back rural voters.
Bernie wins by 14, and when you look at the cross-tabs he wins back all of the voters under 30 that Clinton lost, and most of the downscale Dems Clinton lost.
Make no mistake – Bernie represents a challenge aimed straight at the timidity of Democratic Politics and policy.
The New Deal nonsense – really nothing more in slogan and in substance that Michael Dukakis’s 1988 campaign is pathetic.
A few economists think income inequality is one of three major,issues holding back growth in GDP. ( the others are exports and fiscal policy) I suppose there are plenty of folks out there already know that and they have no idea what some economist thinks. It is an issue that needs to be fully addressed.
What is the difference between the advice offered to the Democrats by the Washington Monthly and Hillary Clinton’s position on the anti-trust issue in 2016?
Issues did not matter in 2016. Isn’t that the real problem? Why should we think anyone will pay any attention to issues in 2020? Between Trump’s nonsense and Bernie’s unworkable “aspirational” plans, there was very little campaigning that was reality based in 2016.
Politics didn’t cease functioning in 2016. The Dems were slaughtered in the “whose side are you on” question by a New York billionaire with no religion or ethics.
I don’t think politics ceased functioning in 2016 either, but I fear that it has changed forever. There are no longer any norms about telling the truth. Politicians clearly can be rewarded for lies, endlessly repeated.
I do not believe the Dems were slaughtered on any message because they were not slaughtered in this election. In fact if the circumstances were reversed – and the Republicans had won the popular vote – we would still be arguing about who should be president. (Which reminds me. Why isn’t getting rid of the electoral college a Democratic priority? Not only would it be more democratic, it would open up the system to more political parties.)
The premise behind your argument – that the Democrats lost because their message was unappealing to rural Americans – is, to me, dubious. I think the problem is that the message was not heard. I actually saw Clinton give an excellent speech on this very topic.
I suppose it is fair to blame the candidate for the failure to break through and simply move on. But the winning strategy in 2016 will be the Republican strategy in 2020 whether Trump or Cruz or Rubio is the candidate. The new way to win elections is to produce wall to wall noise, noise that crowds out any Democratic message. That is the point to the noise.
I’m not disagreeing on the issue here. I applauded Clinton for announcing this as a priority in 2016. But if a campaign issue falls in the forest with no one around, does it make a sound? I don’t think the message matters very much if no one can hear it through the noise.
I’m also not trying to be defeatist here. I’m trying to figure out how to take the good ideas Democrats do have and get through to people who only watch Fox news. To me breaking through the bubble – not the particular message – is the problem.
There’s a certain cacophony to “foreigners are going to kill you” that is hard to match, that’s true.
But Trump won over many Obama voters with a message on trade and jobs that wasn’t matched by anything as appealing on the Democratic side. To win or at least compete in these areas, we need candidates who have a toolbox filled with ideas that are clearly aimed at winning the “I’m on your side” argument.
And you can’t do that by telling them that their way of life is dead and they need retraining and a college education, and plenty of food stamps and subsidized health care.
You can’t convince them that soaking the rich will benefit them, even if you convince them that you’ll actually do it.
You have to acknowledge that they want to be able to compete again in their own communities with their existing skill sets.
This is all very well IF they mean it and it isn’t just “Let’s come up with a neat slogan to convince the dumb schmucks to vote for us.” i.e. become the (D) version of Donald Trump. We saw that with Clinton promising to oppose the trade treaty that she negotiated when it didn’t poll well. A candidate has to have some bottom or they will stain the whole party.
The FIRST change is to renounce ALL corporate and PAC cash. Sanders showed that sufficient cash can be raised from individual contributions albeit not as much as from the 0.1% Screw the professional media consultants and campaign professionals that don’t care if they win or lose as long as they get paid. A whore is more skilled but you are better off sleeping with your wife.
Instead of keeping the riff-raff out, encourage volunteers. Emulate Upton Sinclair and EPIC. Despite his defeat, Sinclair’s vote total was the twice as large as the vote total of any Democratic candidate in California history to that point. In addition, two dozen candidates running on the EPIC platform were elected to the state legislature, including Culbert Olson, who became Governor four years later.
But Trump won over many Obama voters with a message on trade and jobs that wasn’t matched by anything as appealing on the Democratic side. To win or at least compete in these areas, we need candidates who have a toolbox filled with ideas that are clearly aimed at winning the “I’m on your side” argument.
No doubt. But Trump won those voters by promising to bring those jobs back. He promised to make tomorrow look just like yesterday. There was no competing with that message. Even voters who could be forced to acknowledge that nobody was going to start building steel mills again would say, “At least he is going to try to bring yesterday back.”
Plus, many of those Obama voters will express disappointment in Trump today, but no regrets for their vote. Hillary – not Trump – was obviously the corrupt one who belonged in jail. Up was down in the 2016 election.
The good news is that most people saw through the nonsense. The bad news is that a sizable minority plus voter suppression plus gerrymandering plus the electoral college = Where we are today.
What you’re missing is that we’re pitching a throwback set of policies, too. And it’s aimed at bringing back a way of life that won’t be the same exactly due to globalization and automation, but will actually make it possible for regional outposts to compete again the way they used to.
It’s been that way forever. Since ancient Greece at least.
’16 brought such a high volume of messaging from the Breitbart crowd, spread by the Russian bots that none of us could actually hear the word ‘policy’ much less focus on it. HRC probably brought more policies to the table than any candidate in my lifetime but no one was able to look at them because the airwaves were screaming about the guy with no policies.
I doubt we’ll be able to shut off the GOP noise machines but at least we know it’s coming and can take the next year to headline how the Dems’ proposals will translate for small businesses (and I mean small, none of this 500 employee bull puckey).
The main problem is indeed how the Republican noise machine, with the collusion of the media, excludes any discussion of policy from public discourse. That said, my one substantial criticism of Hillary is that she didn’t use the very limited time she had to communicate with the public (in the debates and her ads) to bring up substantive policy issues, because that was the only time she’d ever get them noticed. This current push shows me the Democrats have figured that out, and we’ll do better in the future as a result.
Basically my answer to “why did people move against us on bread-and-butter issues” is that those issues were never discussed and non-politics-junkies just weren’t aware how much worse the Republicans are. If the Democrats do nothing more than bang the drum on what they already propose we’ll pull a lot of them back.
“…you may be surprised to see how strongly it polls”. Um, no I am not. Sane gun control laws poll strongly as well. In fact almost all of Bernie’s agenda polled well. Populism has been neglected for so long that people have given up hope. And as we’ve seen they’re willing to elect anyone that pays (or pretends to pay) attention to them.
Glad to see this glimmer of hope.
Is is just me, or does it seem like there are people out there who don’t seem to like the fact that they got what they’ve clamoring for out of the DNC?
You’re observing the “Nothing is ever good enough!” crowd in action.
This is a good idea. But I suspect we will need to refine it. As someone noted, unless it harms the consumer in some way, there is no anti trust violation. So Amazon, Walmart and big box stores with low prices are not outside the law per se. And most people like them, which may be the bigger problem. My wife just bought a baby’s car seat for a baby shower in one click on Amazon and it appeared at the front door a few days later, no fuss, no muss.
On the other hand Amazon is taking apart the competition like recently Kroger and Best Buy with mere announcements. They already got into Penneys and Macy’s business and shopping malls. But people like them for low prices and convenience. Same might be said about other large chain stores. And people like FB and Apple, high prices and all.
But there is plenty to go after like the big national banks and investment houses ala Sanders and media giants like Sinclair and
Comcast and Verizon. So I think we need to decide how far we take it. Will Amazon be exempted or are they fair game? Is Wall Street off the table, or CNN? If we don’t plan this out them other guys will take us all apart, for some hair brained idea.
I also am not at all thinking this is even close to what we must offer. With all the shit on health care, one could say the time for single payer, Medicare for all has arrived,and we should go for it along with things like income inequality and education debt.
I don’t have any doubt people understand the problem with monopoly in their lives.
My objection is that I don’t think it will actually work, even if we’re able to break up all the big players (which to me seems unlikely).
Also, assuming that people get it and that we can do it and it will actually fix the problem. Will it change votes? I think that’s an open question to, given that the only person to actively run on it didn’t win the primary.