Wal-Mart's Wages Too Low?

The New York Times reports today on the latest criticism of Wal-Mart's wages:

Jason Mrkwa, 27, a high school graduate who stocks frozen food at a Wal-Mart in Independence, Kansas, maintains that he is underpaid. "I make $8.53, even though every one of my evaluations has been above standard," he said. "You can't really live on this." ....

With pay that brings him about $20,000 a year, he said he could not afford a decent apartment or a vehicle better than his 1991 Dodge Dakota. "I don't see why Wal-Mart can't pay more," Mr. Mrkwa said. "Unfortunately, in the market we live in [Independence, Kansas] there just aren't many jobs available."

Wal-Mart says its full-time workers average $9.68 an hour, and with many of them working 35 hours a week, their annual pay comes to around $17,600. That is below the $19,157 poverty line for a family of four, but above the $15,219 line for a family of three....

[C]ompany executives dismiss [suggestions that they increase pay], saying they would largely wipe out Wal-Mart's profit or its price advantage over competitors. Wal-Mart had a profit margin on sales last year around 3.5 percent. If "we raised prices substantially to fund above-market wages, as some critics urge," the company argued in a recent two-page ad in The New York Review of Books, "we'd betray our commitment to tens of millions of customers, many of whom struggle to make ends meet."

Here in Bentonville, Mr. Scott pursued that theme. "If you're telling me because you're Wal-Mart and you're going to pay $12 an hour and this other retailer is going to pay $5.15 an hour, the federal minimum wage, and they're not going to provide any benefits at all and somehow the consumer is rewarded in all this, all you're doing is perpetuating the status quo," he said. "You're driving inefficiencies into the system. It doesn't make any sense."

Wal-Mart argues that, as retailing companies go, it treats its workers better than average. It says 74 percent of its employees work full time, compared with fewer than 40 percent at many other retailers. But critics note that a leading competitor, Costco, pays $16 an hour - 65 percent more than the average wage at Wal-Mart stores and 33 percent more than the $12 average at its Sam's Club stores. At Costco, 82 percent of the workers are covered by company health insurance, compared with 48 percent at Wal-Mart.

Fast Company comments:

[T]he article begs several questions. First, to what extent is anyone entitled, per se, to drive something better than a '91 Dakota? As Mrkwa observes, the labor market in Independence doesn't afford him a whole lot of options. So, is Wal-Mart therefore obliged to pay him more--or is it up to him to move someplace where he can find better work?

Finger in Wendy's Chili Likely a Hoax

Now that it appears the finger tip found recently in a bowl of Wendy's chili in the San Francisco Bay area was planted there to extort money from Wendy's, SRB hopes that any customers nationwide and especially in California who have been avoiding Wendy's will return to the restuarant chain, which (like much of the fast food restaurant industry) has long been a reliable supporter of federal Republican candidates, e.g.:

2004 election cycle
2002 election cycle
1998 election cycle

Update on the case and on the economic damage the finger scare has caused to Wendy's and it employees, some of whom have been laid off as a result of the incident:   Finger Traced to Woman Who Blamed Wendy's  AP via Guardian UK 5/14/05

Denny's Boycott over Border Patrol Treatment?

DOUGLAS, Ariz. -- Denny's has apologized to the U.S. Border Patrol for an insulting receipt given to an agent here after he had ordered a grilled chicken sandwich to go.

The receipt, meant for the cook and not the customer, was typed into a cash register by the restaurant's shift manager and inadvertently given to the agent when he went to pay for the $7.50 order. The receipt described the order as for the "Border Ass Whole."

The shift manager, who was not identified, has been fired. Officials at Denny's corporate headquarters described the manager as a "rogue" employee, adding that the nationwide restaurant chain "supports and welcomes all Border Patrol personnel and their families."

Denny's slam raises ire of Border Patrol  Washington Times 4/17/05

The Border Patrol union applauded the firing, as does Shop Right Blog. SRB does not presume to endorse or oppose any particular boycott, but the nationwide boycott of Denny's restaurants that Friends of the Border Patrol has called for based on these facts seems to us overbroad because this incident relates to only one franchised unit and perhaps only to one "rogue" employee, as Denny's corporate asserts.

Update 4/20/05:  Friends of the Border Patrol is now involved with an effort to clone the Minuteman Project on the California-Mexico border.  Group plans civilian patrols along border San Diego Union-Tribune 4/19/05

Residents fleeing blue county Los Angeles for "redder" pastures

As reported yesterday in the Los Angeles Daily News (People leaving county in droves),

The exodus of Los Angeles County residents to surrounding counties and nearby states accelerated significantly during the past year, driving the largest population shift in the nation, according to new U.S. Census Bureau figures released Thursday.  The figures show 115,434 more residents left the county last year than newcomers arrived.  But the overall population still increased with 98,184 new immigrants arriving from foreign countries and 94,675 more births than deaths....

With few exceptions (the most conservative area of Los Angeles County, the San Fernando Valley -- which was outvoted by the rest of the County in its bid to succeed from Los Angeles a few year ago -- bucked the trend, as did once solidly-conservative Orange County, which also lost residents and is steadily becoming more Democratic due in large part to immigration), residents of blue county Los Angeles are fleeing to lower-tax, lower-crime outlying red counties of California such as Kern County, San Bernardino and Riverside counties, as well as to nearby "red" states such as Nevada, Arizona, and Colorado.

The article cites the influence of housing prices, traffic congestion, and new jobs as the primary motivating factors, however Shop Right notes that:

1. housing is more affordable where property tax rates are lower and where a greater proportion of one's income remains available to be applied toward a mortgage payment rather than being sucked up by high income and sales tax rates and fees;
2. Los Angeles' mostly liberal politicians have chosen to emphasize spending on public transportation, instead of facing the reality that most Angelenos must drive, and that double-decking congested freeways with express lanes would not only be cheaper than subway construction, but more beneficial to the average commuter;
3. the jobs are moving to the so-called exurbs and beyond because the business regulatory and tax environment there is more favorable.

We can't help but wonder if the imminent election of ultra-liberal Antonio Villaraigosa as LA's mayor will accelerate this exodus?

Similar trends are underway across the nation on a macro/state level, as each new U.S. Census shows eastern, mostly blue states losing population, if not on an absolute basis, at least relative to the faster growth of the mostly red West and South.  With declining population comes waning electoral influence.  Notable also are the micro/county level population declines in overtaxed cities controlled by liberals including Detroit, Chicago, and San Francisco.

See also:
Jobs moving out of state: Cost, complex regulations cited by firms  San Francisco Chronicle 2/24/04
Chip off the old block  CNET News.com 5/18/04 (Cypress Semiconductor CEO T.J. Rodgers on California's business climate)
Livingston fastest-growing county, with 2.6% jump  Ann Arbor News 4/22/05 (Livingston County {MI}); Maricopa {AZ}, Flagler {FL} among fastest growing counties in nation)

[Updated 4/23/05]

Pengiun Editors Leery of Anti-Hillary Book

Drudge reports that some staffers at Penguin Books are not happy that the publishing company that brought us John Kerry's plan for America and Al Franken's screed is set to publish a book penned by liberal Ed Klein but highly critical of New York Senator and 2008 Democratic presidential front-runner Hillary Clinton.

Haloscan commenting and trackback have been added to this blog.

Gas Prices Highest Ever?

(And Why Blue Staters Pay More at the Pump)

Are prices at U.S. gas pumps at all-time highs? The mainstream media (MSM) headlines would have one believe so:

Gas Costs Hit Record High, More Hikes Seen AP 3/21/05
Record-high gas prices seen rising further MSNBC 3/21/05
State gas prices hit all-time high Seattle Post-Intelligencer 4/7/05

All of which has had the left screaming that this 'record-high' is 'Bush's fault' and somehow proves the war in Iraq was a 'war for oil', at the behest of oil companies, which have favored Republican candidates in their political contributions for decades.

To MSNBC's credit, for those who read beyond the headline of the above story, its subhead is, "But adjusted for inflation, nowhere near highest ever", and MSNBC then goes on to point out in a graph that, in constant dollars -- the only valid comparison, a gallon of gas cost more from the late 1970s through the mid-1980s. Looking further back, the below official U.S. government data show that the price of gasoline is not at historically high levels; it's at historically average levels, as this chart indicates (nominal price / real [inflation adjusted] price):



The U.S. Dept. of Energy's Energy Information Administration goes on to predict that the real constant-dollar price of gas will fall in 2006, although its nominal price will rise, due to inflation.

In short, gas-price hysteria generated in part by sensational MSM news headlines, and in part by pandering politicians, isn't justified. Especially when one also recalls that:

• Each gallon of gas includes an average of 44 cents in federal, state, and local taxes, a far cry from "what [Democrat] Franklin D. Roosevelt had in mind when he asked Congress in 1932 to impose a one cent per gallon federal excise tax on gasoline as a 'temporary' revenue measure designed to offset shrinking income tax receipts as the economy moved into depression". To the extent gas prices have increased, it is mostly due to increased taxation.

  * Senator John Kerry, of course, once suggested a 50 cent per gallon additional federal gas tax, which would have cost the average family $600 per year; he also voted for Clinton/Gore's 1993 4.3 cpg federal gasoline tax increase.

• In comparison to Europe, where gas typically sell for 3 to 4 times as much, U.S. prices are cheap. Crude oil is the same price worldwide, so the difference can be found in the tax rate: In the United States, roughly 31% of the price of gas goes to taxes; in Europe, as much as 78%. Taxes also account for much of the regional variation in gas prices. Why do blue state drivers in California pay more than red staters in Utah? Greater environmental regulation and higher taxes.

  * One Peoria, Illinois gas retailer details -- and updates on a regular basis -- the impact of taxes on their gas prices here (and notes the generally lower taxes on gas sold in neighboring red and "purple" states).

• President Bush and the Republican Congress have approved drilling in the Alaska's Arctic National Wildlife Reserve (ANWR), which, despite all controversies regarding how much oil is there (only drilling will answer this question definitively), at least can't help but increase supply and reduce our reliance on imported oil. Plus, those closest to its impact, Alaskans and Eskimos, support opening a small portion of ANWR to energy development.
  
  
• The removal of Saddam Hussein from power in Iraq will likely help to stabilize this oil-producing region, reducing uncertainty of supply and smoothing, if not reducing, prices:

  A single event - such as a strategically placed bomb in Iraq or Saudi Arabia, or sabotage at a U.S. refinery - could spark global shortages.... The potential for scarcity drives up the price of oil.
  

  Today's high gas prices have many roots Knight-Ridder 4/7/05
  
  
• Increased demand from growing economies in Asia and a maze of state-by-state regulations also play roles in gas prices (Newsweek 4/18/05).

[Updated 4/11/05]

Wal-Mart Fights Back Against Negative Press

Wal-Mart Stores [WMT], always a lightning rod for criticism as the world's largest retailer, especially from unions and the political left, recently undertook a campaign to restore its image, AP reports:

Wal-Mart stepped up its campaign against negative publicity, calling the company's low-price model "good for America" and accusing opponents of protecting inefficient practices that cost consumers.

Addressing about 50 journalists gathered this week at the company's media conference - its first ever such event - Chief Executive Lee Scott defended Wal-Mart's wages and health care plans, criticized by labor groups as inadequate, and said that the company is able to save customers big money as it drives costs from its system.

"Innovation and competition tend to change the status quo," said Scott, speaking Tuesday at a hotel in Rogers, a few miles from Wal-Mart Stores Inc.'s Bentonville headquarters.

The two-day conference is part of a stepped-up public relations campaign begun last year to burnish Wal-Mart's image and counter views that the world's largest retailer - and nation's biggest private employer - skimps on wages and benefits while filling America's suburbs with boxy warehouses and acres of parking lots. On Tuesday, company spokeswoman Mona Williams urged reporters to clear their minds of previous articles about the company and "start with a clean slate."

See also Wal-Mart Settles Illegal Immigrant Case for $11M Fox News, 3/19/05

According to opensecrets.org, Wal-Mart was the top campaign contributor in 2004 in the Retail Sales industry, and gave 80% of its overall contributions to Republicans.

[Updated 4/8/05]

Gore and Google Team Up for New TV Network

Former Vice President Al Gore is launching a new San Francisco-based cable television network.  Realizing that nothing says young, hip, and cutting edge like inventor of the Internet Al Gore, the network, dubbed "Current" and debuting August 2005, will target the 18-34 demo.  Current's news programming will tap into Google Zeitgeist search engine data to identify hot topics.  UPI via Washington Times; Vote on the net's chances of success here.

Michelle Malkin has coverage, as well as prior commentary on Google's lop-sided campaign contributions to Democrats and its apparent liberal bias in choice of Google News sources.  Additional blogosphere posts on -- and cumulative anecdotal evidence of -- Google's alleged biases can be found at little green footballs (a/k/a LGF), Riehl World View, Jeff the Baptist, Les Jones, Conservative Outpost, GOP Bloggers, The Jawa Report, Indy Media Watch, Conservative Life, Hennessy’s View, JackLewis.Net, Myopic Zeal, Bookworm Room, Generation Why?, The Wayne Review, Desert Rat Ramblings, Libertarian Man of Mystery, Hundred Percenter, Protein Wisdom Thunder and Roses, Say Uncle, Wuzzadem, Gus Van Horn, Think Sink, Lifelike Pundits, Blogs for Bush, and Roger L. Simon.

Newsmax notes that, although "Al Gore swears his new network won't be a bastion of liberal programming... his big financial backers are all liberal, including one of the backers to the ultra-liberal Air America radio network."

During the 2004 election cycle, Google [GOOG]'s employees made 99% of their contributions to Democrats, according to opensecrets.org data, which is obtained from government sources.  Google's campaign contributions are the most one-sided of any of the top 20 computer/Internet companies.  The tech industry overall favored Dems by 53%.

(Yes, for the record, this blog is, at least for the time-being, "powered" by Blogger, which is both owned by Google and free. Yahoo's blog service, Yahoo 360° launches soon, and Microsoft's, MSN Spaces is in its infancy.  Both are also free.)

[Updated 4/9/05, 4/14/05, 4/16/05]

Shop Right Blog Mission Statement and Welcome

Or, why do I care about another blog?

We know what you're thinking:  Oh, boy, yet another blog, just what the world needs!  And we agree, so this is not yet another weblog covering the American political scene.  Rather, it will narrowly focus -- with the occasional digression, we're sure! -- on corporate money and activism in politics.  As such, Shop Right Blog, the official blog of our conservative shopping directory, ShopRight.org, will rely heavily on the invaluable data made public by the non-partisan, non-profit Center for Responsive Politics on its Website www.opensecrets.org, which in turn is culled from government sources, primarily the Federal Election Commission.

We hope that by bookmarking us and reading us from time to time, you, as a conservative and/or Republican and/or traditional and/or libertarian(?) consumer will be better equipped to make decisions with your money, to vote with your wallet, for businesses that support your values and causes.  That certainly is our mission.  Your input via email (blog - @ - shopright . o r g) or posted comments is welcome and appreciated in helping us achieve it.  Obscene or off-topic posts, comment spam, or non-substantive (even if complementary, e.g., "Nice blog" [Exception: Comments to this post only.]) posts are subject to swift deletion, in our sole discretion.

If you still aren't sure what we're trying to accomplish here, then pick a couple of posts and read them to see what we're all about, thanks!

Shop Right Blog: Following the Money...