Walmart Nation

Walmart has grown to be one of the largest and most successful companies in American History. This company has taken control of global markets, and has established itself as one of the greatest and most profitable of its kind, but exactly how does Walmart operate and affect the American Economy? We may think that Walmart has little effect on us, but in reality, this company has caused turmoil in our job market as well as the gradual elimination of small business.

Outsourcing

Walmart obtains many of its products from foreign countries in an effort to maintain low prices and avoid fair wages. Due to their extraordinary negotiating power with suppliers, they are able to obtain their goods for extremely low prices; prices that can only be obtained through outsourcing to foreign countries like China. These low prices come at a cost. Chinese manufacturing companies support unfair working hours and conditions as well as unimaginably low pay. It is estimated that Walmart purchased over 18 billion dollars worth of goods from China, leading to approximately 1.5 million jobs lost in the United States. Nearly 60% of Walmart merchandise is imported. There are reports of teenagers in Bangladesh working 80 hours a week at 14 cents per hour for Beximco, a Walmart supplier. People fail to think of those less fortunate when it comes to shopping or their daily routine, and this needs to change in an effort to help humanity. Supporting a company like this creates global problems in less fortunate countries. Not only that, but a loss in the availability of jobs in the American market. Walmart has become a beacon of evil in these areas.

Elimination of Small Business

Walmart has been accused of predatory pricing, which simply means, intentionally selling a product at a lower price in order to drive the competition out of business. Small business drives the American economy by providing jobs for over half the nation's work force. American entrepreneurs are able to develop very creative ideas, while having extremely high productivity. Small business creates jobs. Unlike Walmart, they have no restrictions on wages, and are able to pay their employees more. When shopping at Walmart, you are centralizing capital to very few and select people who operate the company. In order to maximize profits, the owners of Walmart have to save money, and in order to save money, they poorly compensate their employees in the forms of wages and benefits. Small businesses must operate at high efficiency and produce the highest quality products to stay in business. Not only that, they provide the majority of the jobs in America as well as supporting the local economy. They are the foundation of the American economy and should be supported by the American public as such.

Walmart has established itself as a socially destructive company that weakens the local economies it finds itself in. By outsourcing jobs to foreign countries, Walmart contributes to elimination of local employment, while endorsing the treacherous working conditions found in their factories across the globe. In addition to this, Walmart eliminates small businesses through predatory pricing. This company puts cinder blocks on the entrepreneurs of America, denying the benefits they contribute to our economy.

More by this Author


Comments 27 comments

BobbiRant profile image

BobbiRant 6 years ago from New York

Right on! Love this and I have the WalMart DVD too very interesting stuff. Bad giants, all of em, but Americans and the world wants cheap stuff and then blame leaders for sending their jobs away. They did it to themselves. Good hub.


thedaybreak profile image

thedaybreak 6 years ago from UK

This is a great article. However, I get really disturbed when I hear about these things. It made me sad to hear that there are people in Bangladesh working so many hours a week for so little money. I can't imagine how the people responsible for this sleep at night.


passthejelly profile image

passthejelly 6 years ago from Lakewood Colorado Author

Hi thedaybreak,

I agree. These companies really have no empathy for the people in these less fortunate countries. We must be smart shoppers in order to help prevent this from happening.


ripplemaker profile image

ripplemaker 6 years ago from Cebu, Philippines

Ripplemaker is here to joyfully inform you of your Hubnuggets nomination. Wooohoooo follow this link from Walmart to the Hubnuggets: http://hubpages.com/hubnuggets6/hub/Red-Carpet-Hub... Be sure to vote okay? Enjoy...


Denise Handlon profile image

Denise Handlon 6 years ago from North Carolina

Well written points made regarding the 'negative' side of this company. There are even more points to make about the co's stand on particular preferences and biases which I won't mention. Congratulations on your hubnugget nomination.


Amie Warren 6 years ago

Very good points. Also, they force their American suppliers to give them such low prices that they are forced to outsource their own products overseas, mostly to China. I have stopped buying clothing at WalMart because it is such low quality, even the name brands. I will pay more at department stores and name brand outlets, and have less before I will support them.


passthejelly profile image

passthejelly 6 years ago from Lakewood Colorado Author

Hi Amie,

I agree. People are so worried about low prices that they don't take into account the social effects and quality. Thanks for the comment.


eveliens profile image

eveliens 6 years ago from SK

I actually live in Northwest Arkansas and Wal-mart pretty much employs everyone in the area. I have to be very careful what I say, which is a strain when I understand the destructive mechanics Wal-mart has overall. But it has done wonders for this area, which I guess is the silver lining. Congrats on the nomination.


passthejelly profile image

passthejelly 6 years ago from Lakewood Colorado Author

Hi eleliens,

Thanks for the comment. I hope you were able to see some of the important cons to Walmart, and thank you the congratulations!


bayoulady profile image

bayoulady 6 years ago from Northern Louisiana,USA

I don't like that I have to do it, but I shop at Target,Walmart, and big chain sweat shop stores because of my very limited retirement income.

Great work!

Congrats on your hubnugget nomination!


passthejelly profile image

passthejelly 6 years ago from Lakewood Colorado Author

Hi bayoulady,

I don't blame you. There aren't a lot of choices on where to get your products these days. Thanks for reading.


klarawieck 6 years ago

This is so important! Thanks for writing about it. I will email your hub to all my friends. Congrats on the nomination. I hope you win! :)


passthejelly profile image

passthejelly 6 years ago from Lakewood Colorado Author

Hi klarawieck,

Thank you so much for your support. It is great that you are as interested in this topic as I am.


Ipeoney profile image

Ipeoney 6 years ago from USA

Nice Walmart hub, and Congrats to you.


passthejelly profile image

passthejelly 6 years ago from Lakewood Colorado Author

Hi Ipeoney,

Thanks for the comment and the congratulations. :)


fetty profile image

fetty 6 years ago from South Jersey

Very well written hub that truly points out how this giant of capitalism has used unfair, labor and marketing practices to help put America out of work. Yet, that very low paid or unemployed person feels the need to shop there because of the very economics they are immersed in. Congratulations on your nomination, too!


passthejelly profile image

passthejelly 6 years ago from Lakewood Colorado Author

Hi fetty,

I completely agree. This is a never ending cycle that traps people in to poverty partly do to some of their shopping decisions.


FeniqueS profile image

FeniqueS 6 years ago from Home

I loved this, excellently written.and so very true. They also treat their employees here like trash. I have shops there from time to time. They Do Not Pay overtime. I've seen them fire people for clocking out 2min late. And it was a manager adding on more work before the persons shift ended. They are not the same Walton that I use to watch...These are the hearless Waltons. They must have come from the other side of the Mountain. Its no wonder, so many are out of work.


passthejelly profile image

passthejelly 6 years ago from Lakewood Colorado Author

Hi FeniqueS,

Thanks for the comment. Most department stores are very callous to their employes and they do not have that person touch you find in small businesses. Its a wonder what people have to go through to make mimimum wage.


Alternative Prime profile image

Alternative Prime 6 years ago from > California

Hi Passthejelly,

Congratulations on an excellent Hub. Walmart I think is in a very difficult situation, probably a no win for them. They built their brand solely on the 'cheapest' price in town and how does a company guarantee the lowest price? They need to cut expenses somewhere to live up to that reputation and that's the downside. The upside is they do indeed provide the same merchandise as their competitors and it is at a lower price. So I guess if Walmart didn't exist the general public would be praying for a similar company to enter the market place. It's a tough situation for any business to be in.

Great Hub & Info

Alternative Prime


passthejelly profile image

passthejelly 6 years ago from Lakewood Colorado Author

Hi Alternative Prime,

You are completely right. That is an excellent point about the expenses. These price cuts surely lead to outsourcing and wage slashing. Walmart has been very successful, but they've done so with some really nasty tactics.


Stanley_19802 profile image

Stanley_19802 6 years ago

Hello,

I live in Northern California. The Walmart here just recently upgraded to a super walmart beginning of the year adding a food section. I thought I would be saving some money (I am on disability), but I didn't save on food items. Food items are almost a dollar more than the local food stores charge. I shop for food at a store called Winco. Not only does Winco have more brand choices for food, but they have decent prices. Walmart seems only good prices for clothing (that yes isn't the best quality), pet needs and non food items like that. When it comes to food, I ONLY shop at Winco. I gladly will drive where I need to, to get to Winco. For the same money I would spend at Walmart, I can get double the food at the same price at Winco. Just my two cents. Congrats on the nomination. Very informative hub.

-Stanley


passthejelly profile image

passthejelly 6 years ago from Lakewood Colorado Author

Hi Stanley,

Thats where Walmart sets its teeth in you. They "grantee" low prices but in reality, most of there products on sale are well above competition. Also, most of their clothes are barely wearable. They might be 30% cheaper but you have to replace them twice as often. I am glad you found a good alternative to get your groceries.


PWalker281 6 years ago

Great, informative hub and congrats on your nomination. It's really hard to NOT shop at Walmart because of their prices, but next time the urge hits me to spend my money there, I'll remember this hub. Thanks!


passthejelly profile image

passthejelly 6 years ago from Lakewood Colorado Author

Hi PWalker281,

Thanks for the comment. I know that it is kind of hard not to shop at Walmart and I hope you were enlightened by this article.


Make  Money profile image

Make Money 6 years ago from Ontario

Very important hub passthejelly. A couple of weeks ago a friend sent me an e-mail about the Emma Maersk. The Emma Maersk, part of a Danish shipping line is a monster container ship that transports goods across the Pacific from China to California in just 5 days. Commissioned by Walmart the Emma Maersk holds an incredible 15,000 containers and has a crew of just 13 people. The command bridge is higher than a 10-story building and has 11 cargo crane rigs that can operate simultaneously unloading the entire ship in less than two hours. 91% of Walmart products are made in China. With the speed of travel and quick unloading time of these container ships Chinese grocery produce could eventually replace North American farm produce too if people keep buying from Walmart.

Now for the clincher. A recent documentary in late March, 2010 on the History Channel noted that all of these containers are shipped back to China, EMPTY. Yep, that's right. North America sends nothing back on these ships. That's not good for the future of the US.


wayneboogie profile image

wayneboogie 2 years ago from Lakeview, North Carolina

i've been around long enough to know everything that glitters aint gold or even electroplated. ive only heard it from one source, when those ships return overseas, they go back empty.. do the math

    Sign in or sign up and post using a HubPages Network account.

    0 of 8192 characters used
    Post Comment

    No HTML is allowed in comments, but URLs will be hyperlinked. Comments are not for promoting your articles or other sites.


    Click to Rate This Article
    working