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Tuesday, February 28, 2006

Stop Hurting Wal-Mart Employees

Alan Reynolds:

A Denver Post editorial complains, "Wal-Mart pays less than 1 percent of its $265 billion annual sales for health care." But Wal-Mart's profits in 2004 were just 3.6 percent of its sales, so 1 percent of sales amounts to 28 percent of earnings. Others complain 5 percent of Wal-Mart employees are on Medicaid, but that is comparable to other large retailers and the national average of 4 percent.

Seattle Times columnist Bruce Ramsey notes Washington state's Medicaid plan "enrolls children from families of four with incomes up to $48,000 a year." No private plan can compete with a tax-financed scheme that directly costs users nothing and pays all medical bills.

The lobbying effort behind these bills comes from competing grocery chains such as Giant, Safeway and Kroger, and from labor unions that carry their baggage. When Kentucky legislators discovered their Wal-Mart bill also would apply to Kroger, they quickly exempted Kroger by making the bill apply only to firms employing more than 25,000.

Legislators who take orders (and favors) from Wal-Mart's rivals hope their meddling will raise Wal-Mart's labor costs and thus render the company less competitive. But this is a delusion. The whole burden will be borne by workers and those forced into less-desirable work (or none).

Maryland's mandate does not compel Wal-Mart to spend a dollar more on employee compensation. All it demands is that Wal-Mart pays no more than 92 percent of compensation as wages (or nonhealth benefits). Compelling Wal-Mart employees to accept a larger fraction of their pay in health insurance rather than cash is a particularly bad deal for housewives and students, usually covered under Dad's family plan. It is also a bad deal for seniors covered by Medicare.


Read the whole thing.

This war on Wal-Mart never ceases to baffle me. All the company does is make money for its investors, provide jobs for those who want them and bring down prices on products through stiff competition with other stores.

What's is so wrong about that?

Comments

Avatar for Joe Miller

Because its not socialism.  Don’t you understand that?

Joe Miller on February 28, 2006 at 07:53 am

Seattle Times columnist Bruce Ramsey notes Washington state’s Medicaid plan "enrolls children from families of four with incomes up to $48,000 a year."

Wow! That certainly puts the claims of the Marxist endorsing left into perspective.

likwidshoe on February 28, 2006 at 08:29 am
Avatar for Carlin

All you need to see in the article is where it’s from ..... Seattle.  It could just as well be from SF, NY, Boston, Providence or LA, it really doesn’t matter, none of them have any perspective on reality.

Carlin on February 28, 2006 at 09:25 am
Avatar for Steve L.

What’s is so wrong about that?

The Walmart hating unions aren’t getting credit for any of this.  That’s what’s wrong with that.  I believe that, if a non-union employer were to raise the wages he paid to his employees above the prevailing union rate for the same job, the union would still scream about it because THEY weren’t the ones responsible for getting that pay increase passed.

Steve L. on February 28, 2006 at 09:27 am
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Do any of you even know how crappy Walmart employees are paid?

I’m not saying its not caused by market forces, or that unions are needed, but the pay is pretty crappy. 

FreeRepublicans.com on February 28, 2006 at 09:38 am
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Unions suck


The war against illegal plunder has been fought since the beginning of the world. But how is… legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime. Then abolish this law without delay … If such a law is not abolished immediately it will spread, multiply and develop into a system.

Frédéric Bastiat, The Law

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Rob on February 28, 2006 at 09:38 am

FreeRepublicans.com said, Do any of you even know how crappy Walmart employees are paid?

I would imagine that crappy Walmart employees are paid the same way that good Walmart employees are paid.

I’m not saying its not caused by market forces, or that unions are needed, but the pay is pretty crappy.

"Crappy"? Compared to what? Wal-Mart employees make decent money on the jobs they are tasked to do. They pay a little better than most discount retailers.

likwidshoe on February 28, 2006 at 09:42 am
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Do any of you even know how crappy Walmart employees are paid?

It ain’t a great wage, but then nobody is forcring people to work at Wal-Mart either. 


The war against illegal plunder has been fought since the beginning of the world. But how is… legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime. Then abolish this law without delay … If such a law is not abolished immediately it will spread, multiply and develop into a system.

Frédéric Bastiat, The Law

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Rob on February 28, 2006 at 09:46 am
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$6.50/hr is pretty crappy.

Yes I worked for that all thru college doing other things, but I know people with kids and stuff and thats not enough. 

But at the same time they are working and not totally on welfare.  Those are the people we need to help.  The ones willing to work crappy jobs for crappy pay.

 You know as well as I do that there aren’t many good paying jobs in ND.  So don’t give me the "no one is forcing them to work at Walmart" argument.  Sometimes its either there, or on the government dole. 

And I will continue to use the word crappy because that defines things best. 

FreeRepublicans.com on February 28, 2006 at 09:48 am
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I must be a liberal cause I think people not on the government dole should be paid more by the multinationals that are making good money on their labors.

Capitalism can only work if the people doing the work are properly compensated. 

FreeRepublicans.com on February 28, 2006 at 09:50 am
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Capitalism demands free markets.  Wal-Mart will pay employees what they are willing to work for and not a dime more.

If Wal-Mart weren’t paying enough they wouldn’t be able to find workers. 


The war against illegal plunder has been fought since the beginning of the world. But how is… legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime. Then abolish this law without delay … If such a law is not abolished immediately it will spread, multiply and develop into a system.

Frédéric Bastiat, The Law

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Rob on February 28, 2006 at 09:53 am
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A part of me misses that idealistic anarcho-capitalist thinking I used to have.

Another part of me thinks "what was I thinking?"

Success breeds hate.  So yes, Walmart is the big target.

I have more problems with Walmart in that we are funding the Red Chinese Army.

I say we because yes, I am a hypocrite, I shop at Walmart. So sue me for being a capitalist and wanting to save money.
 

FreeRepublicans.com on February 28, 2006 at 09:57 am
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You’re not so much a capitalist as just plain confused.


The war against illegal plunder has been fought since the beginning of the world. But how is… legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime. Then abolish this law without delay … If such a law is not abolished immediately it will spread, multiply and develop into a system.

Frédéric Bastiat, The Law

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Rob on February 28, 2006 at 09:59 am
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Its like they say "if your not confused, your not paying attention."

FreeRepublicans.com on February 28, 2006 at 10:00 am
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First time I’ve heard that one.


The war against illegal plunder has been fought since the beginning of the world. But how is… legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime. Then abolish this law without delay … If such a law is not abolished immediately it will spread, multiply and develop into a system.

Frédéric Bastiat, The Law

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Rob on February 28, 2006 at 10:02 am
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How come no one is complaining about the crappy pay for the crappy jobs at Target, Costco, Kroger and other super stores and foodmarts?

I’m not sure about the other stores, but I believe Costco employees make very good wages. I think they make a few dollars more per hour than Walmart workers. I had a friend who made $9.50/hr pushing carts.

Andrew on February 28, 2006 at 10:03 am
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First time I’ve heard that one.

Must not have been paying attention. 

FreeRepublicans.com on February 28, 2006 at 10:04 am
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I had a friend who made $9.50/hr pushing carts.

Where?  That could be in a state where the minimium wage is $7+.

That could be in a state with market competition.

Lets remember ND is just NOW getting Sams Clubs west of the Valley, so things are way behind the time out here in the boonies. 

FreeRepublicans.com on February 28, 2006 at 10:05 am
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Capitalism can only work if the people doing the work are properly compensated.

 No.  Capitalism can only work if people are free to make choices about how much they negotiate the worth of their services.  If a person only values their labor at $6.50/hr then they will work for $6.50/hr. 

Government mandates on the value people place on their time skew the system and artificially induce a lack of responsibility on the individual to determine the value of their labor.  Thus we have people saying that $6.50 is "Not enough."  Who am I to determine that $1/hr is not enough for someone with little to no skill?  If they are willing to work for that, they should be allowed to.  If my kids want to work for a company that will teach them a trade, but only pay them $1/hr, why should anyone stop them.  Their choice. 

 

Seth Yantiss on February 28, 2006 at 10:10 am
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Where?  That could be in a state where the minimium wage is $7+.That could be in a state with market competition.

King of Prussia, Pennsylvania. Last time I checked the minimum wage was around $5.15, but I think it went up to $5.25 a few years ago. The wages could be due to the fact that it has been a rapidly expanding area over the past 15 years and has a higher cost of living. But still, compared to the Walmarts in the same area, the pay is much better.

Andrew on February 28, 2006 at 10:11 am
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Government mandates on the value people place on their time skew the system and artificially induce a lack of responsibility on the individual to determine the value of their labor.

I never said government mandates were need.  I was refering to a self-imposed sense of social responsibility by these corporations.

The more these corporations "screw over" their workers, the more ammo the Leftists have to push for Communistic regulation.

Call it PreEmptive Economic Policy.

Who am I to determine that $1/hr is not enough for someone with little to no skill?

Yes, I know the "minimium wage causes unemployment" argument.  I preached it for 5 years.  But as long as we do regulate wages it should be in favor of the individual.  Remember, we can always give the corporations tax breaks later.   

FreeRepublicans.com on February 28, 2006 at 10:14 am
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Free Republicans or Dustin

How much should a Checkout cashier be paid?

Joe Miller on February 28, 2006 at 10:19 am
Avatar for Seth Yantiss

But as long as we do regulate wages it should be in favor of the individual.

You can’t "regulate wages in favor of the individual". It’s not possible.  As soon as you start to "regulate" wages, you take the power for self determination from the individual and place it in the hands of politicians.  You remove the burden of self-value-determination from the individual, which REDUCES their self worth.  This is not good for the individual.  Also, if a company is wage constrained out of existence, how does this help the individual?  What if they WANTED to work for the knowledge rather than the wage?  When my kids start to work, their income will be unimportant.  The knowledge they gain will be what matters.  We (my wife and I) will still feed, clothe, shelter them...  what need do they have for high wages?  They need to develop skills and a valuation of their time.  When the Government sets the value for them, they need not discover what they are worth…

  Remember, we can always give the corporations tax breaks later.

Which will happen… When, exactly?   The cost of taxes are rolled into 3 areas...  The pay for the employee,  the cost of the goods to the consumer, and the value to the stockholder in return on investment.  I fail to see how a short term "tax break" would allow a business to absorb the cost of a mandated wage...  wages FAR outweigh the amount of taxes paid by a business.

The promise of tax breaks is hollow and can be overturned in a heartbeat… No investor is going to sink money into a corporation based upon the promise of tax breaks…

 

Seth Yantiss on February 28, 2006 at 10:29 am
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How much should a Checkout cashier be paid?

Whatever they are worth.  The problem with Walmart is they don’t hire people full time.  Only part-timers.  So the ones that want to work, can’t get the hours to make working, worth it.

 

 As soon as you start to "regulate" wages, you take the power for self determination from the individual and place it in the hands of politicians.

The regulations have been in place for 75 years now.  I am not advocating FOR regulation by no means.  But thats what we have, as such it should be responsiblly done. 

Remember, we can always give the corporations tax breaks later.

We’ve been doing it since 2000.  It’s not tricling down though.

 

FreeRepublicans.com on February 28, 2006 at 10:55 am
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Whatever they are worth.  The problem with Walmart is they don’t hire people full time.  Only part-timers.  So the ones that want to work, can’t get the hours to make working, worth it.

The several hundred thousand people Wal-Mart employs in this country sure seem to think its worth it. 


The war against illegal plunder has been fought since the beginning of the world. But how is… legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime. Then abolish this law without delay … If such a law is not abolished immediately it will spread, multiply and develop into a system.

Frédéric Bastiat, The Law

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Rob on February 28, 2006 at 11:02 am
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Hey, Docdave, don’t include Costco in with the others.  They pay for health insurance for their workers and their wages are double Wal-Mart’s.  Also their CEO only makes $350,000 a year.  Costco should be held up as the poster child for companies that treat their employees well, good wages, good benefits.  I shop at Costco on a regular basis, their prices are competetive with Wal-Mart and they have a good corporate citizen attitude to their employees and their company is growing.  There is very little turnover at Costco, because the workers like working there.

puzzlefeet on February 28, 2006 at 11:30 am
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Puzzle, Costco doesn’t have near Wal-Mart’s market share.  Wonder why that is?  Probably because their prices aren’t as competitive with Wal-Mart’s as you let on.

And the reason they’re not as competitive?  Maybe because they’re paying their workers too much. 


The war against illegal plunder has been fought since the beginning of the world. But how is… legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime. Then abolish this law without delay … If such a law is not abolished immediately it will spread, multiply and develop into a system.

Frédéric Bastiat, The Law

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Rob on February 28, 2006 at 11:46 am
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They pay for health insurance for their workers and their wages are double Wal-Mart’s.  Also their CEO only makes $350,000 a year.  Costco should be held up as the poster child for companies that treat their employees well, good wages, good benefits. 

 Somehow, this was done without legislation??????   How can it be?

I shop at Costco on a regular basis, their prices are competitive with Wal-Mart and they have a good corporate citizen attitude to their employees and their company is growing.

Proving that consumers have an impact.  Rally behind your support of Costco!  Bravo!  This is the way the market SHOULD work!

There is very little turnover at Costco, because the workers like working there.

I try to avoid Wal-Mart.  I don’t like the stores, a lot of the employees, the clientele, or the parking.  The Market will determine the success of the model.  Don’t like Wal-Mart? Don’t go there.  Don’t like their pay or benefits?  Don’t work there.

Seth Yantiss on February 28, 2006 at 11:49 am
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Wonder why that is?

Walmart pushes ‘loss leaders’ more.  IE, the whole gas situation.

By being the biggest, the can dominate by losing money in some areas.

It’s smart business, but its what caused Sherman Anti-Trust in the first place.  

FreeRepublicans.com on February 28, 2006 at 11:50 am
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Anti-trust legislation is meant to protect the competition, not the public.

a.  If they’re losing money, protect them.

b.  If they’re still losing subsidize them.

c.  If they are making money tax them.

d.  If they are still making money regulate them.

e.  Return to first line. 

 

 

The.Whistler on February 28, 2006 at 11:53 am
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With all this talk about people not being able to live on what Walmart pays or that the jobs are crappy, I have to note that some researchers recently announced that there are 3 things that the average person can do to not be poor:

1.  Graduate from high school.

2.  Not have kids before you get married.

3.  Not marry before age 20.

Their research showed that the vast majority of people on welfare fell into one or more of those three categories.  People want to whine and moan and complain about Walmart, but how many of their problems are actually caused by those factors above?

Steve L. on February 28, 2006 at 12:01 pm

FreeRepublicans.com said, We’ve been doing it since 2000.  It’s not tricling down though.

Explain that.

likwidshoe on February 28, 2006 at 12:06 pm
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Wonder why that is?

Walmart pushes ‘loss leaders’ more.  IE, the whole gas situation.

By being the biggest, the can dominate by losing money in some areas.

It’s smart business, but its what caused Sherman Anti-Trust in the first place.  

FreeRepublicans.com on February 28, 2006 at 12:14 pm
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Sorry

FreeRepublicans.com on February 28, 2006 at 12:15 pm
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The lefties hate WalMart because it gives the lie to the socialists myths. 

Free: The Sherman Anti-Trust Act was about Trusts.  WalMart isn’t a trust;  it’s a very successful legal business in competition with a lot of other businesses.  It’s crime is to be winning the competition. 

robert108 on February 28, 2006 at 12:31 pm
Avatar for Andrew

<i>Puzzle, Costco doesn’t have near Wal-Mart’s market share.  Wonder why that is?  Probably because their prices aren’t as competitive with Wal-Mart’s as you let on.</i>

Actually, Costco’s prices are competitive, but it’s not fair to compare the stores. Costco sells goods in large quantities, more like Sam’s Club than Walmart. In my area, Costco has actually taken away much of Sam’s Club business and has pretty much dominated the market. The place is always packed (people even wait in crowds outside the store on Saturdays before opening time).

Andrew on February 28, 2006 at 01:14 pm
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Well great, maybe if Costco keeps succeeding Wal-Mart will adopt some more of their business practices.


The war against illegal plunder has been fought since the beginning of the world. But how is… legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime. Then abolish this law without delay … If such a law is not abolished immediately it will spread, multiply and develop into a system.

Frédéric Bastiat, The Law

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Rob on February 28, 2006 at 01:17 pm
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Compare Costco vs. Walmart stock price over time. COST,WMT are the symbols. Over the last two years, Walmart has trended down roughly 25% while Costco’s went up about the same amount.

Employee attrition, a chronic problem for Walmart, is almost non-existant at Costco. Read the report here: http://www.boston.com/business/articles/2004/07/25/rivalry_between_wal_mart_costco_also_extends_to_national_politics/

The money quote from Costco CEO: "Sinegal makes no apologies for Costco’s policies, saying higher wages reduce employee turnover, which lowers training costs. ‘’I’m not a social engineer," he said in an interview. ‘’Paying good wages is simply good business." "

I agree. Paying a living wage is a real family value that actually affects people’s lives!

mcair on February 28, 2006 at 01:39 pm
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Surely you’re on to something.   I can hardly wait to shop in Mcair and FreeRepub’s store.  Since you know all about how to run other people’s companies surely you’re willing to invest your own money.

The.Whistler on February 28, 2006 at 01:53 pm
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Surely you’re on to something.   I can hardly wait to shop in Mcair and FreeRepub’s store.  Since you know all about how to run other people’s companies surely you’re willing to invest your own money.

It’s fascinating, don’t you think, that a market-driven company can make a decent profit for their shareholders, delight their customers and take care of their employees.

Costco rocks!

mcair on February 28, 2006 at 02:18 pm
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Rob: Good point.  I happen to know that Costco’s business model is fairly different from WalMart’s, and one will undoubtedly win out over the other in the long run.

mcair: Both companies would be doing even better if they didn’t have to act as health care providers at all. 

robert108 on February 28, 2006 at 02:56 pm
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It’s fascinating, don’t you think, that a market-driven company can make a decent profit for their shareholders, delight their customers and take care of their employees.

They may be.  What I doubt is that you have a clue about what you’re talking about.

By the way Walmart is paying probably over 5 BILLION dollars in taxes between income, excise and property taxes.  I hear they are paying a 1.5 Billion in Health care costs.  I don’t hear the libs saying the government should take a cut so a private business can pay their employees more.

 

 

The Whistler on February 28, 2006 at 03:11 pm

mcair says, I agree. Paying a living wage is a real family value that actually affects people’s lives!

What is a "living wage" and who determines it? Why did you say that you agree when the Costco CEO never mentioned this concept called a "living wage"? Think that maybe the sky high taxes affects the ability to earn a "living wage"?

likwidshoe on February 28, 2006 at 03:36 pm
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Right on Steve L:

1.  Graduate from high school.

2.  Not have kids before you get married.

3.  Not marry before age 20.

 

Seth Yantiss on February 28, 2006 at 05:48 pm
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STOP HATING ON WALMART AND GO GET 3 TIMES AS MUCH GROCERY AND PRODUCT FOR A $100 BUCKS THAN YOU WOULD AT ANY STORE ON EARTH.  I LOVE THE PRICES, AND SO DO YOU LYING FUCKING BASTARDS… YOU KNOW YOU WERE SHOPPING AT WALMART THE OTHER FUCKING DAY!!!! HATERS!!!!

Walmart Lover 4 Life on April 13, 2006 at 05:55 pm
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