America Quote by Steven Shaviro
““[Walmart]s largest innovation consists in getting rid of the central Fordist principle of paying the workers enough so that they can afford to buy what they manufacture. Instead, WalMart has pioneered the inverse principle: paying the workers so little that they cannot afford to shop anywhere other than at WalMart. It might even be said, not too hyperbolically, that WalMart has singlehandedly preserved the American economy from total collapse, in that their lowered prices are the only thing that has allowed millions of the “working poor” to retain the status of consumers at all, rather than falling into the “black hole” of total immiseration. WalMart is part and parcel of how the “new economy” has largely been founded upon transferring wealth from the less wealthy to the already-extremely-rich. ””
About This Quote
Wal-Mart’s pricing strategy relies on low wages that keep workers dependent on its stores, effectively shifting wealth upward while preserving consumer status for the poor.
In simple terms: Low wages keep shoppers buying at Wal‑Mart, moving wealth to the rich.
Recognize how pricing and wages shape economic power.
Themes
Mood
Type
When to use this quote
- policy analysis
- business ethics
- social advocacy
- consumer behavior
Key Concepts
Questions to Reflect On
- How does low‑wage consumption affect social mobility?
- Can alternative business models sustain both low prices and fair wages?
The model assumes low prices outweigh wage exploitation, ignoring long‑term social costs.