"Get your facts first, and then you can distort them as much as you please." (Mark Twain)
Friday, November 04, 2005
The "rock-bottom" pricing strategy used by retail giant Wal-Mart has filtered into the US economy and kept a lid on inflation, according to a study commissioned by the company and released.
The study by the economic research firm Global Insight concluded that the discounting along with other measures led to cumulative savings for consumers of 263 billion dollars between 1985 and 2004, or 895 dollars per person.
The researchers concluded that Wal-Mart had a positive impact on US employment, generating 210,000 jobs by 2004, or 0.15 percent more that would have existed without Wal-Mart.
The report also found that Wal-Mart's low pay for employees led to a 2.2 percent drop in overall wages across the economy but maintained that this was offset by falling consumer prices.
Huh? A 2.2% drop in overall wages was offset by a savings of $895 per person, spread over a period of 19 years (that's a raging $47.11 per year, if my long division is accurate)? And these are their own numbers? I'm dying for someone to explain this to me.