How Does Walmart Affect The Economy
Whenever we think of Wal-Mart, what do we picture it as? Do we picture it as a community store where people love to shop at, or do we think of it as a store that has some crazy aspects to it? Whenever I think of Wal-Mart, I consider it as a store where lots of people love to shop at, and where sometimes, every once in a while, you look to see some crazy person. Wal-Mart has some causes for why it is here in our community, but there are some negative effects on the economy. Some causes and effects are locations, wages, buying power, local businesses, and jobs.
To begin with, Wal-Mart’s location can help to increase property value. Some people may say that a Wal-Mart close to a housing development may decrease the value of the homes, but research …show more content…
Due to the fact that Wal-Mart purchases large amounts of retail from manufacturers in China, many manufacturing jobs are lost in America. Due to Wal-Mart's importing of manufactured goods from China, "a study done showed that from 2001 - 2006, over 400,000 U.S. manufacturing jobs were lost" (Tabuchi). Also, in many cases, Wal-Mart may have lower quality products. For instance, let's say that there were only two other countries that had jeans factories. Wal-Mart can then tell them a certain price to sell the jeans at, or make them out of lower quality fabric. That is what happens due to Wal-Mart's buying …show more content…
If a new Wal-Mart opens near locally - owned businesses, then the local businesses may have a decrease in overall sales. According to The Economic Collapse, "a study of small and rural local businesses showed lost sales ranging from -17.2% to -61.4%, ranging to a total dollar loss of $2.46 billion" (The Economic Collapse). Also, whenever sales at local businesses drops, then employment drops as well. According to Mitchell, "whenever local businesses close their doors, that causes for 300 full - time jobs to be lost" (Mitchell).
To conclude, a new Wal-Mart may cause for people to lose jobs. Whenever people lose their jobs, it causes for a lower work rate. According to Neumark, “each Wal-Mart employee replaces approximately 1.4 retail workers, which represents a 2.7 percent reduction in average retail employment” (Neumark). Also, whenever Wal-Mart arrives in a new town, it causes for fluctuations in jobs. According to de Blasio, “Wal-Mart store openings kill three local jobs for every two they create” (de
To begin with, Wal-Mart’s location can help to increase property value. Some people may say that a Wal-Mart close to a housing development may decrease the value of the homes, but research …show more content…
Due to the fact that Wal-Mart purchases large amounts of retail from manufacturers in China, many manufacturing jobs are lost in America. Due to Wal-Mart's importing of manufactured goods from China, "a study done showed that from 2001 - 2006, over 400,000 U.S. manufacturing jobs were lost" (Tabuchi). Also, in many cases, Wal-Mart may have lower quality products. For instance, let's say that there were only two other countries that had jeans factories. Wal-Mart can then tell them a certain price to sell the jeans at, or make them out of lower quality fabric. That is what happens due to Wal-Mart's buying …show more content…
If a new Wal-Mart opens near locally - owned businesses, then the local businesses may have a decrease in overall sales. According to The Economic Collapse, "a study of small and rural local businesses showed lost sales ranging from -17.2% to -61.4%, ranging to a total dollar loss of $2.46 billion" (The Economic Collapse). Also, whenever sales at local businesses drops, then employment drops as well. According to Mitchell, "whenever local businesses close their doors, that causes for 300 full - time jobs to be lost" (Mitchell).
To conclude, a new Wal-Mart may cause for people to lose jobs. Whenever people lose their jobs, it causes for a lower work rate. According to Neumark, “each Wal-Mart employee replaces approximately 1.4 retail workers, which represents a 2.7 percent reduction in average retail employment” (Neumark). Also, whenever Wal-Mart arrives in a new town, it causes for fluctuations in jobs. According to de Blasio, “Wal-Mart store openings kill three local jobs for every two they create” (de