Of course the economics are elementary, for Wal-Mart Stores, Inc. (NYSE:WMT) and many other companies. Just last week, Wal-Mart Stores, Inc. (NYSE:WMT)’s quarterly tidings continued to echo a frightening refrain for America. Its core customers are struggling; their budgets are constrained by rising food and energy prices — in other words, necessities.
Today, there’s something shameful about companies that are crippling the American economy with pure short-term bottom-line motives. They’re ignoring the fact that they may be laying off their own customers; other companies’ layoffs also reduce their own revenues and profits.
Looking at long-term bottom lines, here and abroad
Some companies have recognized the value of employment far beyond the kind of near-term bottom-line thinking that companies like the Cisco Systems, Inc. (NASDAQ:CSCO) example applies.
Apple is currently manufacturing some Macs in the U.S. It’s also creating jobs through construction of giant solar arrays. There’s long been the theory that Apple had the kind of big money to embark on big thinking about bringing jobs back.
In a more impressive example, Whole Foods Market, Inc. (NASDAQ:WFM) manages an admirable balance between helping folks overseas and here at home. Many of its programs and products help support struggling economies across the world, helping increase many people’s fortunes and futures through programs that give them a major platform to sell their products as well as enjoy the fruits of fair trade.
However, Whole Foods Market, Inc. (NASDAQ:WFM) also carries a wide variety of what I’d call micro-local goods. Alert Whole Foods Market customers can find produce grown by small farmers located within miles, baked goods from local bakeries, and hand-made items by American artisans.
Local products aren’t simply about American pride. They also reduce costs associated with factors like transportation, as well as negative externalities that are too often passed along to the general public, like damaging environmental footprints. These are different kinds of value proposition that many investors don’t even contemplate when they look at stocks and future growth, but they’re real.
Real life, real people in America
If Americans can’t purchase, many companies’ revenues suffer. Jobless Americans aren’t good for the long-standing idea that consumer spending makes up two-thirds of our economy. Recent anemic consumer spending data doesn’t please investors. However, traders never seem to quite recognize how consumer spending relates to real life and real people.
The average American citizen can become more constrained in myriad ways, and in ripple effects. They eschew some items so that they can buy others — often basics. They may allocate more of their funds to help struggling relatives. In addition, public assistance relates to all of us, too.
Sadly, this isn’t really a sudden decision to do the right thing. In many cases, the reasons that some of these companies are moving jobs back to the U.S. is simply that China’s becoming more expensive for manufacturing.
The saddest part of this is that many companies’ managements have likely failed to understand that they have been part of the problem, not the solution, over the years since the financial crisis. Even worse, many companies may be failing at innovation. At some point, skeleton crews of workers whose morale has been beaten down likely won’t execute on the most innovative dreams.
Right now, more focus on “Made in America” items would be a boon for our struggling economy and others overseas; visionary companies that find ways to balance both are the dream we should aspire to. People can’t help others much until they can help themselves. Thankfully, more signs point to some paths home.
Check back at Fool.com for more of Alyce Lomax’s columns on environmental, social, and governance issues.
The article Made in America: More Than Just a Patriotic Concept originally appeared on Fool.com and is written by Alyce Lomax.
Alyce Lomax owns shares of Whole Foods Market. The Motley Fool recommends Apple, Cisco Systems, and Whole Foods Market. It owns shares of Apple, General Electric, and Whole Foods Market.
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