Wal-Mart and the Economy
Wal-Mart and The Economy: Weighing The Advantages
Charles D. Calton
Central Texas College
Wal-Mart and The Economy: Weighing The Advantages Would the American economy be better off without the existence of the Wal-Mart chain? Since the beginning Wal-Mart has completely changed the whole spectrum of how the economy works. The superstore has many benefits to its consumers but also has its many disadvantages on the economy in the bigger picture. What used to be a manufacturer ran economy has now changed roles with retailers as they now have the upper hand on how the system works. The demands for low prices have driven manufactures to outsource to keep up with the competition. Growing up I never thought about the effects that Wal-Mart has on our country. I just thought that the benefit of the ability to buy most things in one place was too convenient to pass up. Wal-Mart has more than 6,000 suppliers worldwide; experts estimate that more than 80 percent are in China. Wal-Mart has pushed small business to the brink of extinction in some cases. By providing the lowest prices possible, the manufacturer has outsourced their labor to China and other Asian countries. These countries provide cheap labor for the manufacturer to keep prices competitive enough to keep their product in Wal-Mart stores and in reach of the majority of consumers. Manufacturers outsourcing work to these countries have created high unemployment numbers, reducing the standard of living for Americans. This also creates lower wages for employees in America to keep their competitive rates. But Wal-Mart is doing what it set out to do, which is to create a store that offers the lowest prices on merchandise from clothes, toys, appliances and even groceries to everyone in one place. I feel as if I have not been affected by the Wal-Mart superstore in a negative way. I believe that I have actually benefited from the low prices and convenience to buy majority of my shopping list
Charles D. Calton
Central Texas College
Wal-Mart and The Economy: Weighing The Advantages Would the American economy be better off without the existence of the Wal-Mart chain? Since the beginning Wal-Mart has completely changed the whole spectrum of how the economy works. The superstore has many benefits to its consumers but also has its many disadvantages on the economy in the bigger picture. What used to be a manufacturer ran economy has now changed roles with retailers as they now have the upper hand on how the system works. The demands for low prices have driven manufactures to outsource to keep up with the competition. Growing up I never thought about the effects that Wal-Mart has on our country. I just thought that the benefit of the ability to buy most things in one place was too convenient to pass up. Wal-Mart has more than 6,000 suppliers worldwide; experts estimate that more than 80 percent are in China. Wal-Mart has pushed small business to the brink of extinction in some cases. By providing the lowest prices possible, the manufacturer has outsourced their labor to China and other Asian countries. These countries provide cheap labor for the manufacturer to keep prices competitive enough to keep their product in Wal-Mart stores and in reach of the majority of consumers. Manufacturers outsourcing work to these countries have created high unemployment numbers, reducing the standard of living for Americans. This also creates lower wages for employees in America to keep their competitive rates. But Wal-Mart is doing what it set out to do, which is to create a store that offers the lowest prices on merchandise from clothes, toys, appliances and even groceries to everyone in one place. I feel as if I have not been affected by the Wal-Mart superstore in a negative way. I believe that I have actually benefited from the low prices and convenience to buy majority of my shopping list
References: Young, H. S. (2004, November 16). Is Wal-Mart Good For America? Retrieved Janurary 14, 2013, from PBS Frontline: http://www.pbs.org/wgbh/pages/frontline/shows/walmart/