The Wal-Mart economy.

The economic research firm Global Insight, in a study commissioned by Wal-Mart, concludes that the "rock-bottom" pricing approach used by the retail chain "has filtered into the U.S. economy and kept a lid on inflation," reported a November 4 wire service story. "The report also found that Wal-Mart's low pay for employees led to a 2.2 percent drop in overall wages across the economy but maintained that this was offset by falling consumer prices."

During the period 1985-2004, Wal-Mart's pricing strategy led to a 9.1 percent decline in food prices, a 4.2 percent decline in prices of other goods, and a 3.1 percent decline in over all consumer prices. "Consumers earned less in nominal dollars, but their income bought them more in the economy with Wal-Mart because of real disposable income gains," the study asserts.

In a related story, a survey conducted by Forbes Asia found "that there are now 10 billionaires in China compared with three a year ago," reported BBC News on November 4. "The combined wealth of China's 100 richest people now exceeds $41 billion, the survey found, compared with $29 billion a year ago.

"Brisk economic growth and a huge appetite among foreigners for Chinese investments helped propel the wealth of China's richest people in the past 12 months," observes Forbes Asia. Much of that economic growth, of course, reflects the emergence of Wal-Mart as America's retail outlet for Chinese goods manufactured at below-rock-bottom prices.