We had a chance to watch the PBS/Frontline documentary on Walmart last night.  Wow, was that eye opening!  I had no idea that Walmart is bigger than Microsoft, IBM, HP, Dell, and Cisco put together.

And I also had no idea that Walmart is responsible for exporting thousands (or possibly millions) of our jobs to China.  Their constant demands for lower prices have driven US companies out of business because they can't compete with the low prices from China.  Walmart admits that they buy over $15 Billion dollars worth of Chinese imports every year.  Most analysts think the number is much higher.

According to Frontline "For several years, Wal-Mart has been the single largest U.S. importer of Chinese consumer goods, surpassing the trade volume of entire countries, such as Germany and Russia. Global sourcing is now fully integrated into the company's operations -- giving Wal-Mart enormous leverage worldwide. Foreign products account for nearly all of Wal-Mart's trumpeted low opening price point goods."

And when American companies try to defend themselves against unfair Chinese trade practices, does Walmart help out?  Well, not quite. Walmart recently sided with China, and testified on behalf of them, in a federal anti dumping case that argued that China was breaching its trade agreements.

Together, Walmart and China are dominating the US economy.  As our trade imbalance reaches epic proportions ($150 Billion with China this year), and our higher paying skilled labor jobs are exported, China continues to artificially limit the value of its currency.  By keeping the Yuan at a fixed price against the dollar, China and Walmart will continue to drive down prices, feed the trade imbalance, export jobs, and disrupt our economy.

In principle, free trade is great, as long as it's fair.  But when a communist country fixes their currency prices in order to prevent an even playing field for global commerce, we need to take action to preserve our jobs and communities. 

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