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Walmart's Impact On The Local Economy Essay

405 Words2 Pages

Walmart can change local economies in many ways from store losses to tax payers. One Walmart store can decrease the community’s economic output over 20 years by an estimated $13 million. There will be fewer small businesses in the area .Walmart affects the economies also by low pay to employees. Walmart doesn’t pay its workers well and taxpayers re picking up the tab, Because if Walmart saves money by not paying workers a living wage, those workers turn to your government aid programs. “Wal-mart store openings kill three local jobs for every two they create by reducing retail employment by an average of 2.7% in every country they enter.” Wal-Mart’s entry into a new market does not increase overall retail activity or employment opportunities. Research from Chicago shoes retail employment did not increase in …show more content…

After a single Walmart opened in Chicago in 2006, eighty-two of the 306 small businesses in the surrounding neighborhood had gone out of business by March 2008 Median louse hold income declined by 1.85% nationally and 4.1% in New York City in 2009. This decline will be exacerbated by low paying Walmart jobs. Wal-Mart’s average annual pay of $20,774 is below the federal poverty level for a family of four. A Wal-mart spokesperson publicly acknowledged in2004 that, “more than two thirds of our people… are not trying to support a family. That’s who our jobs are designed for.” Wal-mart has thousands of associates who qualify for Medicaid and other publicity subsided care, leaving taxpayers to foot the bill. For instance in Ohio Walmart has more associates and associate dependents on medicated than any other employer, costing taxpayers $44.8 million in 2009. “According to estimates, Wal-mart likely avoided paying $245 million in taxes 2008 by paying rent to itself and deducting that rent from its taxable income.” Wal-mart has admitted a failure to pay $2.95 billion in taxes for fiscal year

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Olsson’s article “Up Against Walt-Mart” is an investigative reporting. Wal-Mart say “We Sell for Less” and “Everyday Low Prices”. Wal-Mart managers push the employees to the limit; they just want to see how much they can get away with without having to hire someone else. The company is the world’s largest retailer, with 4220 billion in sales, and nation’s largest private employer, with 3,372 stores and more than 1 billion hourly workers. Its annual revenues account for 2 percent of America’s entire domestic products.

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Workers are asked to help after hours and are not being paid overtime. “Americans can’t live on Walmart paycheck” (Olsson 608). Even to this day workers are being paid the minimum and are forced to get a second job because it does not support them and their needs. “Walton paid his first clerks 50 to 60 cents an hour substantially below minimum wage at the time” (Olsson 611). This shows that Walmart has paid their workers at a low wage since the company’s beginning and has not improved.

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Many corporations move to the mandate of a global capitalistic economy, and over the past quarter-century, several large multi-store retailers have experienced considerable growth. Wal-Mart is one of the leading industry giants with a presence in scores of markets that virtually all other vendors cannot compete. In a 2003 New York Times article “Ideas & Trends: Discount Nation: Is Wal-Mart Good for America?” Columnist Steve Lohrdec reported that “Wal-Mart points the way to a grim Darwinian world of bankrupt competitors, low wages, inadequate health benefits, jobs lost to imports and destroyed downtowns and rural areas across America.”

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Consumers that access a variety of choices at one stop. Walmart tends to bring competition and low prices. From the video Frontline, “Is Wal-Mart Good for America,” Alan Tonelson, U.S. Business & Industry Council claims that “the lowest prices have to lead to the lowest wages and to job loss and to lower living standards.” Building Walmart supercenter as many positive and negative effect. Every day Walmart setting new standard giving customer low prices and found thousand of different item under on roof.

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This makes all the small business goes down due to price structure. For example, if Walmart and a small store is all around the corner, any customer would still choose to go to Walmart because it is larger, it has a variety of choices to choose from, it has more lanes to pay which saves less time, it has a huge parking lot, and it is cost in a cheaper price. All of these are reasons of why people should choose Walmart rather than small businesses. Another cons about Walmart is that it’s been too diverse. They invested so much companies throughout other countries such as Mexico, Brazil, United Kingdom, and China.

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