IS WAL-MART GOOD FOR THE ECONOMY?

Is Wal-Mart Good for the Economy?

Is Wal-Mart Good for the Economy?

Introduction

As an exampe Wal-Mart, seems clear that its model of low prices brings more options choice to clients, which is why so lots of people select to shop there. While it is broadly (or maybe not so broadly) supposed that Wal-Mart wipes out different sorts of vacancies and depresses salaries, "the findings recommend the opposite: company growth, employment and total income were somewhat better in Wal-Mart counties. According to a Pew examination cited by the report, 25% of US citizens believe the company is worse for the economy, and 32% had an unfavorable idea about it. (Gogoi, Pallavi, 2007)

Good for the Economy

Up till now, Wal-Mart accounts for almost 7-8 % of retail and food business in the america .--7.5% if one indcut auto sales, according to the report. Among those living near a Wal-Mart, the Pew investigation found 84% said it was a nice place to shop. 5 out of 8 US shopped at the stores in 2005. Nearly 98% of the americas population lives within 16 miles of a Wal-Mart store, and two-thirds of every retailers are situated within 6-7 miles of one, the Fed's report accounted. I nfact Wal-Mart is a boon to every local financial system conomy benefits outweigh its disadvantages. Economist Brink Lindsey of the Cato Institute sees it another way. "I think Wal-Mart is good for America," he says. "Wal-Mart is doing what the American economy is all about, which is producing things consumers want to buy … offering consumers a wide range of goods at rock-bottom prices. It is meeting the market test." This is little consolation to the unemployed workers back in Circleville, Ohio. Steve Ratcliff, a long-time worker at the Thomson plant puts it simply: "If you want these low prices, then you go buy your products from Wal-Mart. But what does that actually do for this country? It's putting people out of work. And it's lowering our standard of living. That's the bottom line." (Gogoi, Pallavi, 2007)

Ironically, for Ratcliff and his former colleagues, there are new jobs coming to town. In a patch of farmland right next to the vacant Thomson plant, Wal-Mart has broken ground on one of its new Supercenters. But the Wal-Mart jobs will represent a steep cut in pay from the $15 to $16 an hour workers made at Thomson, and a far cry from the pension, health care, and job security benefits that have long been the norm in manufacturing. How has Wal-Mart been successful at changing how we do business in America? Ultimately, what, if any, are the repercussions of the revolutionary retail model that Wal-Mart has been known for? Most importantly, are the lower prices we are accustomed to paying, going to cost us tenfold down the road? These questions are being fiercely debated and investigated by economists and the business community. Not only have there been studies done by these sectors, but Wal-Mart, in an ...