The Triumph of Hope Over Self-Interest

Wojtek Sokolowski sokol at jhu.edu
Mon Jan 13 09:32:10 PST 2003


Justin:
> Without necessarily signing omnto a labor aristocracy
> theory, isn't it possivle that it;s true that most
> American workers benefit in some sense from
> superexploitation of Third World workers? Where do
> those low prices in Wal-Mart come from?

Low Wal-mart or Dollar Tree & Co prices can be construed as evidence of superexploitation of the middle class. Merchandise that you buy in these fine shopping establishements does not differ that much in quality from what you get in more upscale stores such as Nordsrtom or Macy's but they cost only a fraction of the Nortdstrom's or Macy's prices. Since it is unlikely that Wal-Mart subsidizes the low prices of the goods its sells, it is fair to conclude that the cost of production of Wal-Mart and Nordstrom goods is not that far apart. What mostly middle class Nordstrom or Macy's customers are paying is a huge markup pocketed by retailers and distributors (or rather their top brass).

Stated differently, Wal-mart's prices are determined by the cost of manufacturing them, while Macy's prices are determined by the gullibility of the US middle class bamboozled by marketers.

Wojtek



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