Capitalism at its Best

[Primvs Sextvs Loverlord]

H&M and Wal-Mart destroy and trash unsold goods

This week the New York Times reported a disheartening story about two of the largest retail chains. You see, instead of taking unsold items to sample sales or donating them to people in need, H&M and Wal-Mart have been throwing them out in giant trash bags. And in the case that someone may stumble on these bags and try to keep or re-sell the items, these companies have gone ahead and slashed up garments, cut off the sleeves of coats, and sliced holes in shoes so they are unwearable.

This unsettling discovery was made by graduate student Cynthia Magnus outside the back entrance of H&M on 35th street in New York City. Just a few doors down, she also found hundreds of Wal-Mart tagged items with holes made in them that were dumped by a contractor. On December 7, she spotted 20 bags of clothing outside of H&M including, "gloves with the fingers cut off, warm socks, cute patent leather Mary Jane school shoes, maybe for fourth graders, with the instep cut up with a scissor, men’s jackets, slashed across the body and the arms. The puffy fiber fill was coming out in big white cotton balls.”

The New York Times points out that one-third of the city's population is poor, which makes this behavior not only wasteful and sad, but downright irresponsible. Wal-Mart spokeswoman, Melissa Hill, acted surprised that these items were found, claiming they typically donate all unworn merchandise to charity. When reporters went around the corner from H&M to a collections drop-off for charity organization New York Cares, spokesperson Colleen Farrell said, “We’d be glad to take unworn coats, and companies often send them to us."

After several days of no response from H&M, the company made a statement today, promising to stop destroying the garments at the midtown Manhattan location. They said they will donate the items to charity. H&M spokeswoman Nicole Christie said, "It will not happen again," and that the company would make sure none of the other locations would do so either. Hopefully that's the final word.

http://shine.yahoo.com/channel/beaut...-goods-562909/


If they gave out free shirts, Jesus forbid, they would've become Socialists. Long live capitalism.

[Helm]

If they gave out free shirts, Jesus forbid, they would've become Socialists. Long live capitalism.

[Bernhardt]

This is questionable from both ethical as well as a business point of view. If the merchandise wasn´t faulty, why not export and sell it instead? After all, they had to buy that stuff from factories; destroyed unsold clothes = lost money.

[Mist and Shadow]

Atleast that didn't throw it in the middle of the parking lot, light it a blaze in front of starving/homeless people and then dance around it chanting "CAPITALISM".
My freind works at Wal-Mart, he once threw out... er... I want to say five thousand pairs of socks but he may have thrown more out. He has done this for the last two years he has worked there. It is an awful waste, regardless of what political leaning you are.

[TheTrainee]

Atleast that didn't throw it in the middle of the parking lot, light it a blaze in front of starving/homeless people and then dance around it chanting "CAPITALISM".

My freind works at Wal-Mart, he once threw out... er... I want to say five thousand pairs of socks but he may have thrown more out. He has done this for the last two years he has worked there. It is an awful waste, regardless of what political leaning you are.

I wonder why the employees just didn't, you know, "dispose" of the goods privately... secretly giving them away? Illegal--is Wal-Mart going to press that case when it would be terrible publicity? "Employee arrested/fired for stealing thousands of shirts that were ordered to be destroyed and giving them to charity."

Not giving is not the same as taking away. No one lost out here except Walmart. You could make the case that what Walmart did is morally detestable but to go from that to "capitalism is evil" is quite a stretch of logic. If Walmart had never created those shirts we'd still be in the same place.

Well... Would not social surplus be higher if they had not wasted resources on those shirts and those resources were more properly allocated?

[BNS]

Well... Would not social surplus be higher if they had not wasted resources on those shirts and those resources were more properly allocated?

Your right. Resources would have been better allocated had those shirts never been created but alas we are not perfect and thus not never at economic equilibrium, though the market is always moving in that direction.

[Phier]

Your right. Resources would have been better allocated had those shirts never been created but alas we are not perfect and thus not never at economic equilibrium, though the market is always moving in that direction.

The issue is normally if a company like wallmart didn't pay for them to be produced NOTHING would have been produced. The workers still benefit even if they are not sold.

[BNS]

The issue is normally if a company like wallmart didn't pay for them to be produced NOTHING would have been produced. The workers still benefit even if they are not sold.

Well ideally at equilibrium the resources that where used to create those shirts would be used to alleviate the demand of other highly demanded products.

Anyways I was just trying to cover all my bases. It seems that the Left having lost the moral argument are now arguing in terms of utility. It's pretty silly and hypocritical, I know.

[Ishoss]

They should've sent it to some poor country in Africa. It's not like H&M or Wal Mart has a thriving market down there anyways...

[Primvs Sextvs Loverlord]

They should've sent it to some poor country in Africa. It's not like H&M or Wal Mart has a thriving market down there anyways...

Why go through so much trouble? In recession, every penny counts.

Wal-Mart is richer than most countries on the face of the earth. It's very existence screams unethical and its actions are deplorable. The reason it didn't distribute the clothes in the US was that it didn't want beggars and junkies wearing the same stuff that they sell for a lot of money to paying customers.

We often criticize Socialist ideals but this sort of stuff just makes me sick.

[Bwaho]

Maybe they could make a deal with a charity organization to have them come pick up the leftover clothes...?

[motiv-8]

Maybe they could make a deal with a charity organization to have them come pick up the leftover clothes...?

And wouldn't that be a tax write-off?

Maybe another reason, deep down, is that I actually feel I've done a kind act for some poor schmuck without a car out there, but that's probably my inner communism demon rearing its ugly head again.

Haha, well... Not to take away from the awesomeness of the act (I plan to do something similar), would you consider it as kind if the state confiscated your old car and gave it to some poor shmuck?

[sabaku_no_gaara]

Maybe they could make a deal with a charity organization to have them come pick up the leftover clothes...?

due to pr they probably will, during a press conference with as much media arround as possible

[RuleBritannia]

One of the examples why Socialism works under the right conditions.

[Dr. Croccer]

Disgusting. I doubt the thought of handing it to charities even crossed their minds.

[Mithie]

Wait.

Stop.

Wouldn't destroying the merchandise, bagging it, and disposing it take FAR MORE MANPOWER AND TIME than just calling, say, your local charity and have them come pick it up?

That's not even capitalism. That's just retarded.

That's why I always donate my old cars to charity when they're on the verge of death. One, I get a nifty tax deduction, and two, it's much less work for me to have someone drive it away than towing it myself to a junkyard. Maybe another reason, deep down, is that I actually feel I've done a kind act for some poor schmuck without a car out there, but that's probably my inner communism demon rearing its ugly head again.

Maybe they could make a deal with a charity organization to have them come pick up the leftover clothes...?

They usually do, if you donate in bulk.

[Mithie]

Haha, well... would you consider it as kind if the state confiscated your old car and gave it to some poor shmuck?

Depends. Do I still get a tax deduction? Will the state provide me with a new car? A shiny Lada perhaps? With a complementary bob-head Big Brother Stalin hood ornament?

[motiv-8]

Depends. Do I still get a tax deduction? Will the state provide me with a new car? A shiny Lada perhaps? With a complementary bob-head Big Brother Stalin hood ornament?

No. You get Yugo, comrade.

[JP226]

They destroy the goods because they are price makers. They don't want to flood the market and drive down the price so it's cheaper in an opportunity sense to simply remove the product. If they were say a price maker, then they would sell at cost if not give the stuff away for free.

This is why journalists need to stay as far away as possible from being allowed to report the news.

[sabaku_no_gaara]

Socialist gouverments don't confiscate your car to give to poor shmucks, they subsidise poor shmucks so they can afford a (cheap) car