The Power of Markets

In an effort to drive sales and increase profit, Wal-Mart is doing the unconscionable.  Well known for being the outlet of poorer American’s, Wal-Mart is raising prices on all basic needs products.  This, in the middle of the current economic struggle we’re going through is proof enough that Wal-Mart is evil.

Huh?  Wait?  That’s not accurate?

The real story is that Wal-Mart is looking to generate sales because of slow business, and they’re doing it by slashing prices, as companies have for generations:

NEW YORK – Wal-Mart is counting on $1 ketchup bottles and sub-$4 cases of Coke to re-ignite sales in America.

They’re one of the boldest moves the world’s largest retailer is making to turn around sluggish business at its U.S. namesake chain and win back shoppers from rivals.

In addition to making existing products cheaper, Wal-Mart is adding choice at the same time:

Wal-Mart is also restoring items like certain soups and laundry detergent it stopped carrying when it tried to declutter its stores.

The good news?  Even if you HATE Wal-Mart and will never shop there, you benefit:

The sharp cuts at U.S. stores, which came ahead of the Memorial Day holiday weekend, have already pushed rivals such as Target into price wars.

The free market; the single greatest method for yanking people out of abject poverty and into a life of relative luxury.

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