WALMART, COLLUSION AND THE COLLAPSE OF THE FREE MARKET

Walmart plans to cut food prices and damage the already teetering grocery industry. Is this healthy competition, allowing one company, by virtue of size alone, to dominate any market to such an extent that it can destroy all its competition? Is this a free market?

Is it any surprise then that Walmart, along with SEIU and The Center for American Progress, backs the health care bill? Walgreens has already announced in Washington state that it will no longer fill new Medicaide prescriptions because it can't afford the loss in profit.

Walgreens is a pharmacy that sells other goods. Walmart, on the other hand, is a general retailer that also has a pharmacy on the premises. Walmart is happy to take a small lose on drugs because it can spread the cost around to other items due to its size.

Walmart is happy to collude with the government because this collusion will increase it market share. So I have a question. Where are all the people on the left that are always screaming about how unfair Walmart is to its workers? People like SEIU. And where are all the activists that are always screaming about Walmart destroying local economies? WHERE ARE YOU??!!

The ends justify the means.

"Wal-Mart Stores Inc will cut food prices and mount a new ad campaign over the next six weeks, a threat to other U.S. grocers that sent an industry shares index down more than 2 percent on Friday.

A Morgan Stanley analyst first reported the world's largest retailer's plan, calling it a major setback for other U.S. grocers, and the company confirmed the promotions in an email.

"While this helps address Walmart's traffic woes, we view this as a major setback for the grocery stocks, which have been rallying on hopes of a return to more rational pricing," Morgan Stanley analyst Mark Wiltamuth wrote in a note on Friday.

The Standard & Poor's Food Retail Sub-Industry Index closed down 2.2 percent.

Walmart has used aggressive pricing in grocery and other units to bring shoppers into its stores. The grocery business is particularly pressured by such pricing, as its profit margins are already low."
Reuters

"As health care reform enters the next phase, we came together at this point in the debate to add our combined voices to the momentum building behind reform. We believe the time for comprehensive reform is now. The present system is not sustainable. The status quo is not an option.

"We applaud the bipartisan efforts in Congress to craft and pass legislation.

"We are pleased that Walmart, Service Employees International Union and Center for American Progress can support three essential elements that should be included in any health care reform legislation--an employer mandate, strong efficiency provisions and a 'trigger' mechanism to ensure cost reductions."
Walmart


"Walgreens has told state officials that as of April 16, it no longer will fill prescriptions for new Medicaid patients at its 121 Washington pharmacies because it isn't being reimbursed enough by the state.

In a news release, the Deerfield, Ill.-based drugstore chain said it will continue to serve its existing Medicaid patients, but it can't take on additional losses due to reductions in the state's payments.
Walgreens had planned to stop filling Medicaid prescriptions in February at 64 of its stores in Washington, but held off while negotiations with the state Department of Social and Health Services continued.

The chain said the state reimburses it at less than its cost to break even on nearly 95 percent of brand name medications it dispenses to Medicaid patients.
"Obviously, we're disappointed that the alternatives we've suggested have failed to achieve a compromise," said Kermit Crawford, Walgreens executive vice president of pharmacy. "We intend to continue our commitment to serving our existing patients, but we simply cannot take on additional losses."
Bellingham Herald