June 5, 2005

Anti-Trust in Two Easy Lessons

About a month after I began blogging at The Eclectic Econoclast, I wrote the following:

Anti-trust in 2 Easy Lessons

1. You must compete.
2. You must not win.

At least that's how too many people think of Walmart.

I was reminded of this lesson by Kevin's post several days ago, citing the investment blog, Motley Fool.

Here is more from that article:

In my humble opinion, Wal-Mart's real sin is that it has been successful. Extremely successful.

Americans seem to have an odd sort of paranoid schizophrenia with respect to wealth. On one hand, we enthusiastically pat ourselves on the back for living in a country that offers unparalleled economic opportunity. On the other hand, Americans are generally suspicious and resentful toward the wealthy or successful, and "class warfare" is a time-tested political strategy.

In some ways it's too bad that Wal-Mart can't enjoy more of its own success (though the heirs to Sam Walton's fortune don't seem overly glum). After all, Wal-Mart has built itself into a colossus principally because it has delivered what people want -- when, where, and how they want it.

I am really distressed that people would like to limit the successes of firms like Wal-Mart; the successes of these firms make consumers better off, and they typically create better jobs and better working conditions than had been available in the businesses they displace [K-Mart, anyone??]

Posted by TheEclecticEconoclast on June, 5 2005 at 08:30 PM