Wal-Mart Wants to Invade Cudahy…

…but Cudahy Mayor Ryan McCue is having none of it. Shortly after casting a vote against Wal-Mart, McCue became the subject of a recall effort spearheaded by two Cudahy citizens who support putting a Wal-Mart right in the heart of Cudahy.

Randy Hollenbeck of The Way I See It, a local Cudahy blog, has taken up the issue of putting a Wal-Mart in Cudahy, and among the arguments he uses to justify putting a Wal-Mart in Cudahy is as follows (emphasis mine):

Wal-Mart doesn’t affect Cudahy’s image, just like have Pick N’ Save does not. What it does do is increase the standard of living. Look up what standard living means if in doubt.

While Randy Hollenbeck would like folks to believe having a Wal-Mart in Cudahy will increase the standard of living, the opposite is true. In fact, Wal-Mart has helped employees file for public asssistance, a fact which seems to fly in the face of Randy’s argument. Now sure, I suppose some will argue, “But Zach, you linked to the AFL-CIO…that proves that this is all about unions hating Wal-Mart.” Now sure, I linked to an article on the AFL-CIO website, but here’s proof that Wal-Mart assisted employees in seeking out and applying for public assistance.

And let’s not forget that almost two thousand Wal-Mart employees here in Wisconsin receive BadgerCare, at a cost of almost 1.8 million dollars to Wisconsin taxpayers. Now while Randy Hollenbeck might not mind paying his tax dollars to foot a health insurance bill that Wal-Mart and its billions of dollars in profits should be picking up, I’m not into corporate handouts. But getting back to my main point, the fact that almost two thousand Wal-Mart employees in Wisconsin need BadgerCare just underscores my point that Wal-Mart does little to raise the standard of living, as Randy Hollenbeck asserts.

Putting aside Randy Hollenbeck’s argument about Wal-Mart raising the standard of living in Cudahy, I believe this is an issue of folks in Cudahy settling for a Wal-Mart when they could raise their expectations much, much higher. Why not seek out a development that enhances Cudahy’s reputation, instead of settling for the eleventh Wal-Mart within a twenty mile radius?

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35 thoughts on “Wal-Mart Wants to Invade Cudahy…

  1. My comment was simply this:

    I can see how Wally World really improves the quality of life for people. If you need proof, just look at all the limos parked five deep in front of each Wally World store. And that’s just the employees. The customers have even bigger limos.

  2. 2000 walmart employees in WI have Badger Care. This doesn’t mean much unless I know how many people Walmart employs in WI? What is the percentage of their workers who have badger care, vs other similar retailers? By itself the 2000 number is rather meaningless, 2000 sounds like a lot, but Walmart is the number one employer in this state, so it may only be a small percentage…

  3. Mr. Zippy – Choose what you want to hear and you will miss the truth

    If we don’t let Wal-Mart in will that make everything better? High paying jobs will come to Cudahy. I wish high pay jobs for unskilled workers were around. It is no longer the 60’s anymore, where you could drop out of high school and get a job like that. People need skills today. I am tired of people talking as if everyone that works at Wal-Mart is the sole provider for the family. Most family both people work. Many of these types of jobs supplement other income or for those still in school. Not everyone is single or unmarried with three kids.

    Just stop shopping big box stores. Okay! Be realistic…

  4. In case you don’t get the Milwaukee Journal or missed it in Wednesdays 1-23-08 business section here is the link:
    http://www.jsonline.com/story/index.aspx?id=710228

    Here is a recap:

    Wal-Mart says 93% of workers are insured

    Wal-Mart said that 79% of its work force – or almost 1.1 million full-time and part-time associates – were eligible for health benefits in its most recent enrollment period. That contrasts with 57% of workers in the retail sector.

  5. Badgercare stuff Mr. Zippy left out

    In June 2007 the state Department of Health and Family Services posted an updated list of Wisconsin employers with the largest number of employees (or their dependents) participating in BadgerCare, the state’s health insurance program for low-income working families. At the top of the list was Wal-Mart(largest Wisconsin job provider at estimated 30,000 jobs), which had 897 employees enrolled, plus an additional 776 dependents. The Department projected the annual cost to the state of those enrollees at $3.7 million. Other employers at the top of the list were McDonald’s (248 employees; 149 dependents), the non-profit healthcare provider Aurora (193; 162), and home improvement chain Menard (163; 184). The 116 employers with 15 or more employees on BadgerCare were said to cost the state a total of $23.9 million a year.

    So for those upset, don’t shop Wal-Mart, Meanards or eat at McDonalds or see a doctor at Aurora!

  6. The standard of living refers to the quality and quantity of goods and services available to people, and the way these goods and services are distributed within a population. It is generally measured by standards such as income inequality, poverty rate, real (i.e. inflation adjusted) income per person. Other measures such as access and quality of health care, educational standards and social rights are often used too. Examples are access to certain goods (such as number of refrigerators per 1000 people), or measures of health such as life expectancy. It is the ease by which people living in a time or place are able to satisfy their wants.

    Having a Walmart in Cudahy would by definition increase the standard of living. Walmart is not replacing jobs, but adding jobs and the availability of goods.

  7. I question Mr. Zippy13/Zackary’s count of Wal-Mart people on Badger care of 2000 – What is your source?

    “I’m not into corporate handouts. But getting back to my main point, the fact that almost two thousand Wal-Mart employees in Wisconsin need BadgerCare just underscores my point that Wal-Mart does little to raise the standard of living”

    Year 2005
    http://www.jsonline.com/story/index.aspx?id=328286

    The biggest employer of BadgerCare recipients was Wal-Mart, which had 809 of its employees

    According to the state analysis, Wal-Mart had 897 workers enrolled in BadgerCare in March and a total of 1,673 when family members are included. That’s down slightly from 904 employees and a total of 1,699 in March 2006.

    http://www.jsonline.com/story/index.aspx?id=623312

  8. Randy, I’ve linked to all the sources of my data, so please feel free to click the links in my post to get the answers to your questions.

  9. 2004 BadgerCare 1,813 employees & dependents $1.8 million 1st
    2004 Medicaid 1,952 children (incl. above) 1st
    2005 BadgerCare 1,252 workers & dependents $2.7 million 1st

    That is old data and you missed an important part – workers & dependents

  10. Randy

    What is wrong with Costco then? It has all the cheap prices of Wally World, and it treats its employees and its neighbors in a much more civil and respectful manner. Or does it baffle the mind that not everyone is as profit driven as the Waltons?

  11. There’s a lot of reasons I’m not a fan of Wal-Mart. Other than the reasons I’ve already listed, I’m not a fan of Wal-Mart because over 80 percent of Wal-Mart’s 60,000 global suppliers are based in China. I remember back to the days when Wal-Mart’s “Buy American” Program touted the fact that Wal-Mart bought American-made goods. I’m not a fan of Wal-Mart because I don’t believe a company that had 12.88 billion dollars in profits last year should ask for millions of dollars in handouts in order to build stores in cities like Chicago.

    There’s a lot of reasons not to be a fan of Wal-Mart.

  12. Costco does not want to come to Cudahy. They were asked. Wal-Mart was not the first retail they asked for it was the seventh. It was the only one that wants to build in Cudahy.

  13. K-Mart sells the same products as Wal-Mart, then if it is because they are made in China that point is moot.

    Remember:

    People hate Microsoft and Bill Gates because he is successful.

    People hate Warren Buffett of Berkshire Hathaway because he is successful! So what if his 31 Billion will be left to charity, mostly to the Gates Foundation (remember – We hate Bill Gates – he’s successful)

    People hate Wal-Mart because Wal-Mart is a successful business.

    People deserve choices!

    I don’t Hate Microsoft, Bill Gates, Warren Buffett or Wal-Mart. In fact, I’m writing this using Microsoft Word on a computer custom built buy a small local business. Yes, I have Pampered Chef products at home from one of Mr. Buffett’s companies. I wish I were as successful as any of them but I will not let my jealousy cause me to make poor decisions.

    Yes, I shop at Wal-Mart as well as many other large and small businesses. I’m not rich! I do what I can for my family and my community. I use the local tailor, to fix my kids clothes. I help a local organization that supports the needy. I shop for sales at the grocery stores. I shop at Wal-Mart to buy things at a lower price and improve my standard of living and improve my community.

    As far as China Products: I prefer to buy American made when it makes financial sense. I’m not hurting the Chinese when I buy their products. The cost of living in China is between 1/10th to 1/4 that of Australia, North America and Europe (Source: http://www.china-tesol.com). In China, a Big Mac or 1/4 Pounder cost about 6.00 RMB (US $0.75) (Source: http://www.china-tesol.com). They don’t have to earn as much as we do, most people in the world do not earn as much or live as well as we do! Do you want to give that up? When I save money at Wal-Mart, I increase my bank account, buy more things (imported or domestic) increasing my family’s standard of living or I spend that extra money at a local restaurant or some other type of entertainment or even a Farmer’s Market, increasing that proprietor’s and their employee’s quality of living!

    As far as, “Wal-Mart busts attempts to unionize” . . . YES. . . OK . . . Well, what do you think they suppose to do? What is the purpose of a Board of Directors, “The primary responsibility of the board of directors is to protect the shareholders’ assets and ensure they receive a decent return on their investment” (Source: http://beginnersinvest.about.com/cs/a/aa2203a.htm). As I remember it, in my Econ 101 course it was “The primary responsibility of the board of directors is to protect the shareholders’ investment and maximize return on their investment”. I guess they even Econ has gone PC! They are correct, they should try to keep out the unions if it keeps prices down and increases shareholder’s equity. I know, It sounds cold . . . unless you are a share holder and if you have any mutual funds, you probably are! All, the poor employees can always go to work somewhere else. I know, you are going to say all the good jobs will be gone. If you look around, you will find many better jobs that have popped up around due to the new Wal-Marts. I have small business customers who have fought to keep their doors open until Wal-Mart arrived. Afterwards the added traffic to the area has saved their businesses. Look around southern Wisconsin at the Wal-Marts and all the businesses that they have attracted i.e. Watertown, Wis Dells, Onalaska, Lacrosse, Delafield and Pewaukee stores and you will see the same!

    People deserve choices!

  14. Why is Wal-Mart okay for Delafield, Pewaukee, Germantown, Mukwonago, Muskego, and Franklin’s image? Do you think the Mayor of those cities feels the same as Mayor McCue? Has McCue even talked to his counterparts? By the way, all of those cities have higher income levels then Cudahy! Is that not what we are trying to achieve? Maybe having a Wal-Mart and increasing the standard of living has something to do with it.

    http://www.jsonline.com/story/index.aspx?id=647387

    It’s a win for the city,” said Mayor Ryan McCue. “Either we get a good retail development with Continental Properties, or we get the land back.”

    Isn’t Wal-Mart good retail development, since they are the number one retail in the world? Is there something above being number one? As originally proposed, IcePort was to have been an anchor for LakePort Village, a larger commercial and retail development. Again the Zoning Issue!

  15. First it was that Wal-Mart pushes out small business. Then because Wal-Mart finds products outside the U.S. I love how people let the manufactures off and it is the big bad Wal-Mart that is at fault. Is this all about items only sold at Wal-Mart?

    But, to their credit, they have developed an extremely efficient supply chain structure, one that has become a model for other businesses, and this has propelled them to the number one retailer in the world. That sounds like someone admiring Wal-Mart, doesn’t it? Understand that idealism is not always concordant with business realities. Is Wal-Mart a Monopoly? Is this not Capitalism? Everyone except the government is in business to make money. Is it fair for store to charge customers $1.99 for a can of cat food, where another store sells it for $2.99? Ask people living way up north how much things cost when your nearest store is 80 miles away.

    History lesson –

    Migration of manufacturing jobs from the U.S. to China and other East Asian countries. That is what is happening from the 1990’s to today. Anyone remember the 80’s Mexico was all the rage. Automakers moved down there in droves. Remember the 70’s, it was Taiwan and Hong Kong. Remember the 60’s it was Japan. Anyone see a business cycle? Manufacturing jobs move to where the employee cost is the cheapest, then move on to the next. You can ship in cheap raw goods from anywhere, but labor costs are different. Would you like to know once the standard of living increases in China and workers get paid more where the companies will move to? To the countries in Africa which are less developed. As I dust off my economics book that is all because of “comparative advantage.” Is a Ford car made in Mexico American or is a Toyota car made in Tennessee American? Are both or neither? What about Toyota’s business practices where just last year a man died at a plant after working over 48 hours straight with no breaks? Does it matter?

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