Impact of Wal-Mart on the US Economy Essay -- Business Economics

Impact of Wal-Mart on the US Economy Wal-Mart has had a fundamental economic impact on the US, as well as the economies of countries that watch relations with the US. Wal-Mart is the demesnes biggest company of any kind, with 80 percentage of the households in America purchasing something from the superstore it is the nations largest retailer. Wal-Marts keep price reduction has given Americans the advantage of being able to abide 15 to 20 percent much than they previously could. (Hansen) In a world governed by globalization and greed, competition has become rigid as a result firms like Wal-Mart have utilized advanced merchandise strategies to insure that they are on the neck of competition, and are the core deciders of the market. (Ortega) However, Wal-Mart make decisions that were of a disadvantage to aspects of the economy, including the depletion on a small scale of puny Town USA. Wal-Mart has been of a great advantage to the US economy, being the worlds largest private employer thus providing more jobs. Wal-Mart is currently employing 1.5 million which equals to the nation of 12 states. In addition, Wal-Mart has caused the lowering of prices of competitors known as the Wal-Mart effect, this rescue Americans approximately $100 billion in 2002. (Hansen) On a little degree, this caused an individual American to save 15 to 20 percent of their income on necessities, allowing the surplus to be utilized in a fashion that allows an consumption which fulfills a specific luxury to the individual, for example a car etc.. From my heyday of view, this allows the less advantaged to be able to purchase beyond necessities, and causing more money to spread through the market rather than the recycl... ...al-Marts methods to retentiveness these prices down have been immoral. In addition, they have taken advantage of townspeople resources for example, subsidies, employee benefits and exploitation of cheap labor. Even though they have surp assed significantly in attracting customers all over the nation, they failed to do so ethically. This has created losses to competitors, and the battle for reach is an ongoing one. Therefore, I believe that Wal-Mart has become an economical disaster to competitors and the US as a whole. This is collectable to the exporting of huge amounts of funds to Asian countries, which in turn reduced the funds in the US due to continuous import costs. Works CitedHansen, Brian. Big-Box Stores. Are They Good For America? 14 (2004). 14 Mar 2005 <www.libraries.psu.edu/cqresearcher.Ortega, Bob. Ban the Bargains. The Wall Street journal 11 Oct 1994.