Alice Walton Says: Let Them Eat Cake
So, what would you do if you were, along with your mommy, the richest woman in the world, but your workers either can't afford health insurance or have to pay through the nose to get pathetic insurance and, as a matter of policy, your CEO tells the world that your company doesn't expect its pay to allow workers to provide for their families? Simple answer: if you're Alice Walton you buy a painting for more than $35 million. I mean, that's the reaction of a normal human being, isn't it?
Yes, the tale of the Walton family seems to get even stranger. Buried down in the metro section of the New York Times today is the news that dear Alice--who is tied with dear Mother for the 13th spot on Forbes magazine's list of the wealthiest people in the world with a mere $18 billion--bought an Asher B. Durand painting called "Kindred Spirits"(hey, don't feel bad, I had no idea who this Asher person was either). The painting will be displaced in the Walton's museum which will open in 2009 in Bentonville.
Oddly, even The New York Times seemed to have caught some spiritual vibe that these Waltons are very twisted--this very same day Paul Krugman has a column entitled "Always Low Wages. Always." His column compares General Motors to Wal-Mart. Krugman points out that Wal-Mart is now the "widely emulated business icon," replacing GM, which just had its bonds downgraded to junk status.
His thought is not a new one: GM workers could attain a middle-class life style on the wages and benefits the company provided in return for the sweat of the people who turned out their cars; Wal-Mart workers don't have anywhere near that security. Not everyone is doing poorly at Wal-Mart, Krugman writes: "In 1968, the head of General Motors received about $4 million in today's dollars - and that was considered extravagant. But last year Scott Lee Jr., Wal-Mart's chief executive, was paid $17.5 million. That is, every two weeks Mr. Lee was paid about as much as his average employee will earn in a lifetime."
By the way, Krugman's column forgets to mention that it was the labor movement that brought good benefits to GM workers, not some good-citizen impulse by GM. Before GM was unionized , an auto job was a pretty crappy thing to have, as were other industrial jobs. Krugman's conclusion that "there's no easy way to reverse that change" is only half right: the political and legal climate does make it impossible for workers to unionize but, what he neglects to say is that there is a straightforward path to middle-class jobs: if there was mass unionization, Wal-Mart and other low-paying jobs would turn from the pre-GM type slave-wage jobs into work that provides a more sane and economically-viable standard of living.
Anyway, back to our heroine. So, while Alice is splurging on art--a splurge made possible by the cash earned for her by her poorly-paid workers--most of her workers can't even pay for health insurance. In this context, I also can't help but note the ironic title of the painting--would any Wal-Mart worker, all of whom collectively help finance Alice's artistic dabbling, see her as a kindred spirit? Doubt it.
Comments
The fact that some are very rich and some are very poor is neither shocking nor new. What is shockingly new is that the broad American middle class and the *opportunity* for Americans to become "middle class" is disappearing.
Some, like Krugman, have called this a new "Guilded Age" conjuring an image of the post-War Between the States era of industrial expansion, crony capitalism, unbridled "trusts", corruption and gross excesses of American "captains of industry". The essential issue to recall is that unlike the 1800s and early 1900s, this new "Guilded Age" of the ultra-rich like the Waltons comes at the *expense* of an existing American middle class. (A broad middle class did not exist in the 1800s and early 1900s; it was a post WW2 creation.)
How is this accomplished? Well, the poor pay and benefits characteristic of Wal-Mart directly affects its employees but the widening orders for goods from low-wage Third World nations place middle class American workers and domestic producers of goods in a downward tailspin. Wal-Mart, by itself, is responsible for a significant part of the deficit in trade with China. Widening numbers of Americans are being hit by outsourcing-related job losses.
Eventually, even the low prices at Wal-Mart will be too high for the unemployed, underemployed and low-wage service workers. Wal-Mart and companies like it can only profit for so long from paying Third World wages and charging American prices. See, for example, Paul Craig Roberts recent CounterPunch article, "America is Losing: More Phony Jobs Hype" at http://counterpunch.org/roberts05122005.html
I think that ultimately, crisis born of global labor arbitrage (the export of American jobs to low-wage nations and the import of low-wage foreign workers) will be the force for change. It's reasonable and lawful for American workers to unionise but the overall downward slide in wages is part of the downward slide of the entire national employment situation.
We all know what eventually befell Marie Antoinette. The Waltons and other money-mad corporate leaders would do well to keep this lesson from history in mind...
And let's not forget that great friend of the working man, Senator Ted Kennedy, who with his pal Senator John McCain just proposed an amnesty bill for illegal aliens that will further depress wages in indusrties ranging from hotel/restaurant through agriculture and on to building trades. With friends like these, who needs enemies?
Good call on Krugman neglecting to note that it was the labor movement responsible for GM's policies, not GM. I thought the same thing when I read it. A typical misrepresentation when it comes to the benefits of unionization, to organized as well as unorganized workers.
I would like to have a relashionship with Alice Walton, can i get his adress to contact here!!
Be blessed!
What difference does it make what she spends her money on.Do you think that you can make her feel bad.She doesn't have anything to do with Wal-Mart's wages.She opted out along time ago.She raises horses here in Texas.
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It is very sad what has happened. That is why we have GM XEmployee. A free job posting board where hopefully unemployed autoworkers from any company can find the job they need. There also articles to help write a resume’ and go on interviews.
How much money did you give to charity last year? How productive have you and your family been in your lifetimes? Do you bring inexpensive goods to millions of people around the world? Please stop spreading the anti-Walmart hatred!
My friendships with Mrs Alice L.Walton. I excuce much near you because my English is not also correct to be able to express you what I have at the bottom of the heart and which I would wish you only synchro-transmitter for me. I am a 41 year old African who was likely to make higher studies and in the time which is ainé of a family of 17 children of which the 3/4 did not know this chance and those which fleurés the success finished their studies in the primary classes by the lack of financial means. However, me which, not only recovered the chance of all the remainder never knew the delight the success but them-aussi.Pour that, I would wish that you financially help me to assemble a company of trade of coffee and of cocoa in my country which is coast-in Ivoire in the African continent precisely in Africa occidentale.Je am titular of a master of science in management of logistics, transport and purchases. I wish you good reception and that god help you to help me. Thank you.
Oh, goodness, I suppose there really are enough ingorant people to keep Wal-Mart fearmongering afloat, after all. Where does WM buy their whips and chains, by the way? They must get a good deal, being the low-cost leader that they are.
Mrs Alice L. Walton, have you ever reflected on the love and trust the Almihty God has for you and in you? Sincerely being what you are and more especially with that kind heart, you need to thank Him. MAny people would one time get where you're but can never have the giving heart you have for the needy. God Bless you.
I would like to have the address of Alice Walton, so that we can have some communications.
God bless you.