Nov 22, 2004
Last week, Kmart announced that it would buy Sears and merge the two operations. Only two and a half years ago, Kmart had to file for bankruptcy, claiming it had no money. New executives closed 600 stores and laid off 57,000 people.
Suddenly Kmart had enough money to swing an eleven billion dollar deal. That money came from all those jobs lost, stores closed, neighborhoods left without places to shop. Now business commentators are already predicting more stores will be closed and more workers laid off as the two corporations merge.
Edward Lampert, Kmart's "turn-around" specialist, is no retailer. He got his billions through financial dealings, not by selling the sheets or tools or clothing we all need.
The Kmart-Sears merger is another example of how capitalism works. Its only purpose is making profits for big investors, like financier Lampert and his buddies.