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Sunday, October 18, 2009

A Thought About Big-Box Retailers

To the extent that discounters make themselves able to discount by paying lower wages rather than by real efficiencies, they hire your neighbors to to do jobs for less than the going rate, then offer to split the saving with you. You take yours in in lower prices. They take theirs in greater profit. Or they hire you for less and offer to split the saving with your neighbors. So for you and your neighbors it evens out--minus the greater profit taken in each case.

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