Not only does that argument vastly oversimplify the economic effects of Wal-Mart's obsession with providing its customers with low prices, it misses out on the fact that in some communities, Wal-Mart hires people who would be otherwise unemployed or unemployable:

The Service Employees International Union (SEIU) sent a letter to the Congressional Black Caucus saying the group was giving Wal-Mart "an opportunity to fashion a false image as a friend of African Americans and of working people generally." Cong. Albert Wynn (D-MD), chairman of the CBC's PAC, told Roll Call that the caucus cannot brush aside the interests of businesses like Wal-Mart that employ thousands of black Americans and help fuel the economy in minority communities. Therein lies the Democrats' problem. While one constituency is hurt by Wal-Mart (organized labor) another benefits (the African-American community).

The strong ties between some of Wal-Mart's strongest critics and Democratic party raises the issue of whether there is a political, as well as an economic, agenda at work:

Two of the newer watchdog groups seeking to dethrone the retail giant are WakeUpWalmart.com and WalMartWatch.com. The latter group is a joint project of The Center for Community & Corporate Ethics (a 501c(3) organization) and Five Stones, Inc., which takes its name from the story of David and Goliath. In I Samuel 17:40, David chose five smooth stones from a nearby stream as he prepared to battle the giant. The goal of Wal-Mart Watch is to coordinate Wal-Mart's critics. The Center's board of directors is a list of Democratic officials including Service Employees International Union President Andrew Stern, Judy Lichtman, founder of the National Partnership for Women and Families, Common Cause President and CEO Chellie Pingree, Sierra Club Executive Director Carl Pope, and Roger Wilkins of George Mason University. Pollster and strategist Ed Goeas of the Tarrance Group is the lone Republican. Former Democratic Senatorial Campaign Committee executive director Andy Grossman is also the executive director for Wal-Mart Watch.

And while the media coverage of the last few years has always framed Wal-Mart as Goliath and its critics and David, Gonzales astutely questions this conventional wisdom:

But who is David and who is Goliath in the retail battle? In the Biblical narrative, Goliath instigated the fight, emerging from the Philistine camp daily to patronize and challenge the Israelite army. Finally, after 40 days, David confronted Goliath because no one else would. Today, Wal-Mart's critics grasp the David profile simply because of Wal-Mart's size, but they also seem to be the ones picking the fight.

Whether or not Wal-Mart is David or Goliath, one things is clear, they have the potential to marshal formidable eocnomic and human resources to protect their interests, resources that are, as Gonzales astutley points out, highly concentrated in the Red States:

The discrepancy between the number of Wal-Mart stores in Republican areas compared to Democratic areas is significant. In the 31 states won by George W. Bush in the 2004 election, there are 2,455 Wal-Mart entities, including 1,404 Supercenters, 691 Discount stores, and 360 Sam's Clubs. In the 19 states won by John Kerry, there are 1,131 Wal-Mart entities (272 Supercenters, 669 Discount stores, and 190 Sam's Clubs), overall less than half the stores in the Bush states.

There are over 355,000 Wal-Mart employees in the Blue states, one-third of the 931,979 employees in the Red states. Wal-Mart's critics may see these as potential voters to be gained, but they are also a potential backlash if they lose their jobs altogether.

Wal-Mart's pattern of political donations do nothing to lessen the partisan overtones of the conflict:

If current trends continue, Wal-Mart will expand its political contributions, to the detriment of the Democratic Party. Since its inception in 1982, Wal-Mart's PAC has given 80% of its money to Republican candidates and committees to the tune of $3.1 million compared to only $758,000 to the Democrats. Back in the 1998 election cycle, Wal-Mart Stores Inc. PAC for Responsible Government dished out only $181,750 in contributions. In 2000, it almost tripled that to $576,050. Wal-Mart doubled their total again with $1,280,500 in 2002 and chipped in $2,178,000 in the 2004 election cycle. At the current pace, Wal-Mart could top $4 million in contributions in this mid-term cycle.

The problem for the Democrats and labor unions attacking Wal-Mart is that the company maintains a very good reputation, both as a retailer and an employer, in states where the Democrats have to make inroads in order to win the next national election. Picking a fight with the nation's biggest employer and biggest retailer may not be the wisest course of action. Winning that fight will require a lot more than five smooth stones from a nearby stream.

Also on this blog:

The Political Dimensions of the War on Wal-Mart and Five Forces Analysis of Wal-Mart and The Economic Impact of Wal-Mart and The Empire Strikes Back or the entire Wal-Mart series

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