Why is it in times of economic peril that the slimiest, skeasiest, laziest companies prosper? It's a little thing we like to call capitalism, kids, and it's everywhere. It's the reason we have any new technology, it's the reason we can talk to Bob online in Austrailia, it's the reason that there are civil wars all over Africa, it's the reason we are wading in financial debris up to our necks right now.
A conservative, or anyone with a lot of money, will give you a lecture about how capitalism is good, and breeds competition, strives for innovation and basically encourages society to "better" itself. But the deepest problem with capitalism is - a fact that has been known since its popularization during the 1700's - that there is always a loser. When someone is winning, their economy is thriving, the citizens are happy, water is flowing, money is growing out of trees, culture is pounding, there is another country that is losing. Oftentimes, it is the Third World countries in Africa or South America, where colonialism is still deeply entrenched. It's not hard to be at the losing end of capitalism. All it takes is a blow to the financial sector to stall the system, and then selfish companies (really, you can't blame them for trying to save their own skin) cut off workers, decreasing employment, which decreases overall spending.
Spending, aka consumerism, is the key to capitalism. You spend money on the local grocery store, which puts money in Mr. Grocery's pocket, who then spends money at the local bar, putting money in Mr. Bartender's pocket, who then spends money to invest in stocks, putting money in Mr. Banker's pocket, and so on. Well that sounds good, don't you think? If everyone did that, Canada would be in a good position. Except then come multinational corporations (MNCs).
MNCs have really been around since capitalism, and is largely what sparked the whole movement to begin with. Basically, the idea is you have a company that is based in one country, but has branches in other countries. While a portion of the money earned by the company goes to wages and property costs in the branches, the majority of it feeds right back into the mothership in the home country. McDonald's is the timeless example of this kind of company. Based in the United States, there are restaurants all over the world. So Mr. Canadian consumer goes out, and instead of going to a local restaurant, he hits up Mickie D's. He pays his $8.00 for a Big Mac meal - much cheaper than a restaurant, since he doesn't have to tip for service - and goes about his business. Meanwhile, that $8.00 and the billions of dollars generated all over the world by McDonald's consumers, largely flows right into the pockets of the States. Sure, some Canadian McDonald's employees are earning minimum wages, and the owners are paying to take up space on Canadian soil, but that is all small potatoes compared to what the CEOs and execs are raking in on profits.
McDonald's and Wal-mart and probably every other MNC save money by paying their employees poorly, and through their globalized branches worldwide. McDonald's pay their workers minimum wage, and in countries like Mexico and regions of South America and the Carribbean, the minimum wage is a hell of a lot cheaper. The prices stay the same, but they pay workers in less developed countries less money, because they can. Wal-mart buys cheap products from China or Mexico, where there are few labour laws and workers are paid the bare minimum. Wal-mart then inflates the price of the cheaply made product, which they still manage to keep below their competitor's prices, and sell it all over the world. Are the workers in Mexico or China ever compensated more if their products sell better? No.
So I see this article that Wal-mart is still thriving when everyone else is faltering, and it makes me sick. It is an exploitative business, that does not give back to the countries it takes from. Okay okay, the people in those countries need those jobs, and want to work for the payment they recieve. I'm aware. But if you are First World company, you should be paying your workers First World wages - that would be a fair practise, and the only way to outsource without exploiting your own employees.
What happens in times of economic strife is people desperately need to save money. So they shop at Wal-mart and eat at McDonald's, because its cheap (because they pay Carlos in Mexico, $6.00 a DAY, maximum to work). This sickens me the most, that these companies exist for the lower classes of society. They know that people on a budget don't have an option, and that is why they can't afford to pay the extra amount to buy from local stores or restaurants.
In some of the locations in the Carribbean or Europe or South America, these companies set up shop and boast the same prices you would find in America. The locals can't afford to eat there (not that they would want to), so the McDonald's and Wal-marts end up serving mainly tourists. They pay suppliers in other parts of the world and ship the products in, pay the workers in these places insanely low wages, and still cater to a First World crowd. Does the money from the tourists go back into the said countries? Nope, it trickles right into America's pockets. Whereas, if McDonald's wasn't there, tourists may have gone and eaten at the local pub. Hotels and resorts are no different. So the tourists come and absorb the beauty and wonder that exists in these exotic places, but don't even contribute back to their economy. They are taking in all the good that these countries have to offer, and not giving back. They are basically raping the countries of, really, the only worth and value they have to Western civilization. It's awful.
I know, this is a lot of socialist mumbo jumbo, but I think if you are going to be exploiting other countries, the least you can do is own up to it. By going on vacation in Cuba (unless you actually use the country's own accomodations), by eating at McDonald's, by shopping at Wal-mart you are only adding to the economic instability. The best thing you can do for your country, is go to the local restaurants, buy local produce, shop at local grocery stores and buy locally made clothing. Just keep this in mind next time you eat a Big Mac.
-- the golden girl
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