Don't Bank On Wal-Mart

[LiviaOlivia]

TomPaine.com
Don't Bank On Wal-Mart
Jeff Milchen
April 10, 2006

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Even many staunch supporters of unfettered free markets realize Wal-Mart’s size alone demands special treatment and that existing laws are not up to the challenge presented by the company’s power. Indeed, Ben Bernanke and Alan Greenspan—the current and past chairs of the Federal Reserve—have called for Congress to “review” the ILC loophole, and several states already are weighing bills to ban out-of-state ILCs in response to the Wal-Mart threat—Iowa’s passed last week.

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But free markets in the U.S. exist only in economics textbooks. I’m testifying against allowing the Wal-Bank because I’ve seen Wal-Mart’s economic clout translate into political dominance in towns throughout the country, undermining both market competition and democracy.

In this system of corporate/state capitalism, Wal-Mart has been extracting subsidies for hundreds of its facilities, including 90 percent of its distribution centers. Wal-Mart and other giant companies wield their uncontrolled size and power to distort free markets through these subsidies, anti-competitive practices and by violating with near-impunity many laws theoretically protecting communities, workers and healthy living conditions.

In too many cases, America’s independent businesses are being out-lobbied, not out-competed, by Wal-Mart. Those who trust Wal-Mart will limit itself to a narrow range of banking activity misunderstand the nature of publicly-traded corporations, which by design are driven to grow perpetually. For a publicly-held company, there is no such thing as “big enough.”

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http://www.tompaine.com/articles/2006/04/10/dont_bank_on_walmart.php