Thursday, April 27, 2006

Shackling Wal-Mart

Jeff Milchen, the co-founder of the American Independent Business Alliance, writes about the Shackling of Wal-Mart. This is an article discussing the outcry against Wal-Mart's request to enter the banking industry. A public outcry "led to the first-ever public hearings held by the Federal Deposit Insurance Corporation for a banking application".

I think this is true:

Naturally, Wal-Mart executives complain that it’s unfair for the Target Corporation to own a bank while they cannot, and they understandably are frustrated that Target largely escapes scrutiny for operating a business that emulates Wal-Mart in almost every manner. But just as many communities rightfully control big box stores more stringently than small businesses, Wal-Mart’s power demands we control it more stringently.

People continually wonder why the uproar against Wal-Mart and not other big box stores. Maybe it's because they don't understand the enormous size, financial advantage, and political power that is wielded by Wal-Mart.

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