[Cialug] OT: Deep packet inspection meets 'Net neutrality, CALEA

[Jeff Davis]

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Brandon Griffis wrote:
> Your statement, though obviously sarcastic, is more true than you seem
> to know.  Walmart is a great example of this.  Kmart went bankrupt and
> there are few of them left.  Target is usually only in the slightly more
> populated towns.  But where Walmart is the most vicious is when the town
> has local/smaller stores.  Walmart comes in, undercuts everyone and
> takes a loss at that store for 5-8 years.  Then when all the other
> businesses go backrupt they jack up their prices and in many cases
> destroy the town.  Not to mention the job loss and lack of full time
> insured positions.

Walmart is a corporation with share holders and the goal is to earn money.
Walmart isn't in the business of destroying towns, in fact it would not
be in walmart's interest NOT to destroy a town.  Apparently everyone in those
towns you cite is fickle enough that they only look to the lowest price.
(I've noticed that often times the lowest price isn't a brand you recognize.)
So if the towns people don't shop at the other smaller businesses, I'd
suggest that perhaps it is the fault of those towns people that they
no longer have any choice but Walmart.  As opposed to your theory that
Walmart destroyed the town.

Given the situation you describe above. Let's say there are two grocery
stores in town, and walmart moves in and 'puts them out of business.'
Then your 5-8 years go by and walmart jacks up the prices because they
are the only game in town now.  They are trying to recoup that loss
they took by raising current prices.  Now an environment exists
where someone can open or re-open one or more grocery stores again
and likely do very well against the higher walmart prices.

The problems come when we get sitautions where government says
stupid things like "No new grocery stores."
Then when the walmart comes and the other two stores close.
Now you're just left with one choice.

This reminds me of some conversations I've had with people who
complain about U.S. manufacturing being moved overseas, while
those same people think nothing about shopping at all the $1
stores whose inventory very rarely states "Made in the USA."

- -Jeff




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