Is Wal-Mart Good For the Economy?
Posted: November 26th, 2008 | Author: admin | Filed under: Uncategorized | 8 Comments »
Make no mistake about it Wal-Mart changes prices in the global economy. Forcing suppliers to reduce prices every year and keeping selling, general and administrative costs at an unheard of 17.5% of sales gives the retail giant the opportunity to charge customers the lowest possible price. “Save Money. Live Better” is Wal-Mart’s new slogan as it has attempted to recreate it’s image. Is Wal-Mart really helping Americans to live better by saving money?
Many people do not realize that Wal-Mart’s biggest competition, Target, makes as much money in an entire year as Wal-Mart makes before St. Patricks Day. There is no true competition for Wal-Mart which gives the corporation to chance to name their price for goods. Any supplier that says no to Wal-Mart risks losing their largest customer. If they say yes to Wal-Mart, they can expect to make less than 5% profit on their products as Wal-Mart wants the price lowered every single year even even with the increase of inflation.
Everyone has an opinion about Wal-Mart; some love it, some hate it, but regardless, it is the largest retailer in the world and greatly affects the global economy. Even if you hate Wal-Mart, they still price the goods in which you buy. If there was no Wal-Mart, you could expect that every basic staple would be at least 10% higher in price. Overall, this saves every person money, but is that good for America? There are MANY issues that Wal-Mart has as far as treating employees, but that is not the premise of this article. The question is solely based on the economical effects of Wal-Mart. So, is Wal-Mart good for the economy?
[...] Is Wal-Mart Good For the Economy? “Save Money. Live Better” is Wal-Mart’s new slogan as it has attempted to recreate it’s image. Is Wal-Mart really helping Americans to live better by saving money? Many people do not realize that Wal-Mart’s biggest competition, Target, … [...]
Aside from possibly becoming a cartel similar to OPEC and possibly being in a position to affect prices in the other direction, I don’t know how it can be advantageous in the big picture, to encourage and contribute to the financial crisis by excluding local workers from participating in the creation and frankly the selling of their products.
Shouldn’t those job opportunities go to the people who need them at home? Not to mention that the retail wage is so low that no one single mother could raise a cat, let alone a couple of kids…
Worst of all they are completely exploiting the workers in the developing countries! My question: Why does anyone shop there ever?? Believe me if Wal Mart was boycotted, they would change their practices and still keep their prices down.
No blaming the company from me, just the people who continue to support such horrible practices – that actually hurt them!
Wal Mart is a danger to American way of life one day they will control everything it will be bad for our way of life they will control prices and wages with slave labor sounds like Corporate Communism to me
Worst of all they are completely exploiting the workers in the developing countries! My question: Why does anyone shop there ever?? Believe me if Wal Mart was boycotted, they would change their practices and still keep their prices down.
How do you know that they are being exploited? I know that’s the general assumption but have you ever been to a developing country? If the per capita income is 1.00 a day and Wal-Mart pays 2.00 a day is that exploitation? If you ever travel to sub Saharan Africa (I have) you will quickly realize that the best thing that a company could do is put a sweat shop there. There is NOTHING there. Literally.
I think that a lot of people so against globalization would have a little more going on upstairs. After all if you don’t let the rest of the world in to supply our goods aren’t you keeping them down? Seems to be very hypocritical.
For the record I do agree with Joe Plumber above who says that Wal-Mart is danger to America although I don’t envision quite the dark future he does.
There is no critical thinking anymore regarding this issue.
[...] Is Wal-Mart Good For the Economy? [...]
[...] The search links back one of my original posts back in November asking “Is Wal-Mart Good for the Economy?“ [...]
[...] The search links back one of my original posts back in November asking “Is Wal-Mart Good for the Economy?“ [...]
Point blank.. the Retail Giant takes away jobs. Maybe we are slowly on the way to living like the chinese… maybe we should get a hearty appetite ready for RICE. Globalization takes away from America being America…