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.
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.