2/3/2005

WE’RE ALL WAL-MART PEOPLE

Don’t ask me how, but somehow we lost our crockpot in the move last summer. I think it’s pretty good that we only lost one thing, but still, it’s a bit disconcerting to think that somehow something bigger than a breadbox just vanished from your kitchen.

We’ve made it almost five months without it, which I suppose means we could make it forever, but I missed it, so I stopped off at Wal-Mart on my way home from work to pick up a new one. Which I did, a nice 6-quart model for just under $25.

For some reason that seemed like a suspiciously low price to me, and of course the reason why is right there on the box: MADE IN CHINA. (So much for thinking I was supporting the local economy by buying a West Bend crockpot.) I started to feel bad about myself, almost like maybe I should take it back and buy a different model.

I suppose that’s what I get for consorting with the Evil Empire, the Ozarkian Sphere of Annihilation that’s taken over retailing in America. Most companies selling low-to-mid-priced consumer goods find it increasingly hard to do business unless they do business with Wal-Mart. And Wal-Mart is all about the price. They want a price that’s lower than anybody else can get–which is exactly what I want, but I digress.

Anyway, that probably explains why my West Bend crockpot only came to West Bend to be sold. Given a choice between outsourcing to meet Wal-Mart’s price goals, or going out of business, West Bend probably made the right choice. Selling 100,000 crockpots at 50 cents of profit a piece (or whatever it is) makes a company a lot more money than going under.

Still, a person just comes to resent the inevitablilty of it all. I’m afraid that pretty soon your only choices for buying crockpots will be Wal-Mart or upscale online retailers who sell high-feature, high-price models. And the main thing that means is that, for those of us who thrive on having out-of-the-mainstream tastes, our chosen lifestyles are going to grow tremendously expensive. Like the man once said, cui bono?

Just about everybody, as it turns out. I happened to be glancing through the October 1976 Reader’s Digest tonight (the fact that this was even possible should give you some idea what my basement looks like) and just beyond a laughably quaint article about Chinese cuisine was a major ad for household goods. Lo and behold, what was among the items? A Sunbeam crockpot! 5-quart capacity, just a little smaller than the one I bought tonight. Two heat settings, unlike the three on my new crockpot. And the price?

$28.

Just to give you some perspective, according to our government, consumer prices increased 131% from October 1976 to December 2004 (the latest month for which statistics are available). So that means the 1976 crockpot cost almost $65 in 2004 dollars. At Amazon.com, you can’t even buy a $65 crockpot. Conversely, my $24 2005 crockpot would have to have sold for $10.39 in 1976 to be as affordable as it is today.

More amazing was the 10-cup automatic drip coffeemaker similar to (but almost certainly not as advanced as) the $12 Black & Decker 12-cup coffeemaker on my counter today. It sold for $42, which comes out as $97.02 in today’s dollars. You can certainly spend a lot more than that on a coffeemaker today, but your $100 2005 coffeepot will do things 1976 consumers would’ve only seen in a Jetsons cartoon. And I’m sure that 1976’s $5.20 coffeemaker (my Black & Decker in 1976 bucks) was a teakettle and a jar of Taster’s Choice.

A Black & Decker 3/8″ variable-speed reversible drill was $24.99 in 1976. A new one wil run you $29.99 at Amazon.com.

Need a car? A 1977 Chevelle based at $3,885, but that’s for the Water Department’s six-cylinder with three-on-the-tree and “255″ air conditioning. $6,300 would buy you a Chevelle optioned the way a real 2005 person would’ve liked it, with such niceties as power steering and full carpeting being extra right along with the AC, tilt, cruise, power windows and locks, and rear defroster we’ve all taken for granted for over a decade. That would be about $14,553 in today’s money, which is more than you’ll pay for a 2005 Malibu, which starts at $19,825. Of course, that’s laden with all kinds of stuff that wasn’t even optional on a ‘77 Chevelle.

My point in all of this is that, while we certainly know that many things have grown unfathomably more expensive since 1976, there’s an awful lot of stuff which has grown cheaper, everyday stuff that we all take for granted. So when you’re shaking your fist at the big-box retailers, remember–without their clout, you’d probably have to spend $60 for a crockpot and $100 for a coffeemaker. Say what you will, the price for the trappings of a middle-class life is less than it used to be.

Posted by Mark @ 12:07 am | | Permalink
This post is filed under: General

11 Comments

  1. Actually, you can find a $100 crock pot, it’s just that they’re called slow cookers once you cross the $40 price point.

    http://www.amazon.com/exec/obidos/tg/detail/-/B0001XASX0/qid=1107422459/sr=8-4/ref=pd_bbs_4/104-2023328-5219952?v=glance&s=home-garden&n=507846

    Comment by dw — 2/3/2005 @ 3:22 am

  2. I’m a little confused about this statement: “That would be about $14,553 in today’s money, which is more than you’ll pay for a 2005 Malibu, which starts at $19,825.”

    Is this the New Math I used to hear so much about?

    Comment by Harry — 2/3/2005 @ 9:09 am

  3. Mark - good post as always….here’s a somewhat related article from Reason exploring this:
    http://reason.com/9808/fe.cox.shtml

    Comment by Jon — 2/3/2005 @ 9:09 am

  4. Here’s a very interesting and related article from Reason - adding time to the equation:
    http://reason.com/9808/fe.cox.shtml

    Comment by Jon — 2/3/2005 @ 9:29 am

  5. Harry, I’ve always been told that less is more. I guess that’s what I get for blogging after midnight.

    Comment by Mark Hasty — 2/3/2005 @ 10:15 am

  6. dw, it’s nice to see that a $100 crockpot can burn food just as well as a $15 one can, according to the customer reviews.

    Comment by Mark Hasty — 2/3/2005 @ 10:26 am

  7. Real wages, folks. At some point, the loss of all those union manufacturing jobs is going to mean that the average Joe American, after inflation, will be making *less* than he did in 1976. In some ways, when you factor in the cost of things like education and health care (and the corresponding loss of benefits, which are not included in “median income”), he already is.

    Comment by Dave — 2/4/2005 @ 12:50 am

  8. It’d be nice if more people could afford to avoid Wal-Mart. However, on Nov. 2, 2004, the nation’s voters ensured four more years of over-reliance on Wal-Mart and the like. Because here’s the thing: most people’s incomes are not rising at the same rates as (1) gasoline at the pumps or (2) prescription drugs. When people continue to pay for those - they are necessities for many people - and they reserve their right to keep on depositing the same amount from every paycheck as savings in a child’s college fund, or any other fund, the less money people will have to spend on food/clothing/electronics/tires - the types of things they can get at W-M and other big discount chains often at much lower prices than from small businesses.
    I’ll get off my box now.

    Comment by Paul — 2/4/2005 @ 11:14 pm

  9. And on Nov. 2, 2004, the nation’s voters ensured another four years of consumer over-reliance on Wal-Mart and the like.
    Because with rising costs for fuel and health care - and a President who doesn’t seem to get that most people’s incomes haven’t been rising proportionately - and because every person has a right to continue saving the same amount for their children’s education (or their own) every week, that means more people are coming up with less and less income to spend on food/clothing/electronics/tires/whatever - items they can often purchase at W-M and other big chain discount stores at much lower prices than possible from small businesses.
    And yet, most people I meet who would classify themselves as “small business” owners have vocally expressed support for our two-term President.
    It’s a crazy world.

    Comment by Paul — 2/4/2005 @ 11:27 pm

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    Mark Hasty thinks about Wal-Mart and its very microeconomic effects: My point in all of this is that, while we…

    Trackback by The American Mind — 2/5/2005 @ 8:45 pm

  11. What a Crockpot Can Inspire
    Mark Hasty thinks about Wal-Mart and its very microeconomic effects: My point in all of this is that, while we…

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