Wal-Mart Effect

The “Wal-Mart Effect” is the result when one business in a sense monopolizes the market forcing smaller businesses out of business or a decline in sales. The “Cybernetic Wal Mart Effect” is the effect that online shopping can do to the economy whether it is local or global. The consumer will prefer to buy their goods online as opposed to local shops and stores and as a result taking away potential revenue from its respective economy. “Cybernetic” means the purchase of goods via the Internet. Any type of purchase that is computer driven can fall under the term cybernetic. Sclove had a fear that online purchasing would without tax would have catastrophic repercussions. It was stated in his article that online companies were not legally obligated to tax the consumer. However, since Sclove’s article sales taxes have been applied to purchases made online. With all of the complexities that surround the purchasing items on line with or without tax has become a bit clearer. In the article “States Make Push for Internet Sales Tax” As a result, generally only businesses with a "physical presence" in a state -- such as a store or office building -- collect sales tax on products sent to buyers in the same state. This has become the rule of thumb more or less when it comes to purchasing merchandise online. Companies have now registered with streamline groups in order to tax all products regardless if a physical presence of the business exists in the state or not. In reference to Marketplace Fairness Act, a citizen can write to Congress to encourage them to vote for or against a measure. With this particular act you would contact your senator. The Senator who sponsored this act was Michael Enzo. I think Congress should always take the consumers best interest in consideration. It would be ideal for legislation to be fair along all socioeconomic levels. Richard Sclove expresses the “WalMart Effect” impacts our democratic values. I believe it does. I think it