Step 2: Offer prices too low for any local competitor to meet.

Do you agree that this one, specific effect, lower prices when Walmart comes to town, is good for the locals?

Step 3: Employ all the competitor's laid-off workers at 1/2 their previous pay scale.

General Merchandise Stores pay nonsupervisory employees an average of $12.72 per hour. Do you have a source for the 1/2 pay scale?

Step 4: Point out that if they can't live off the Walmart wages, that the Gummint will support them.

One of the most interesting things I learned from Hubski, if I am not mistaken, is that government welfare programs put upward pressure on wages.

I don't think this is a widespread view, but I believe it is true. If there are no public benefits, workers will have to make do with whatever salary they can get. Additional public benefits make them somewhat more comfortable, so they can be somewhat more choosy about employment, and if they receive sufficiently generous public benefits, they might choose not to work at all, unless they were offered a very high salary to make it worth their while.

Or: imagine you receive a large inheritance. Now you don't need salary as much as you did before. Are you now willing to do the same job for less salary? Or are you more likely to quit, unless the boss offers a big raise to keep you around?