Ideas and trends
Wal-Mart has been accused of making FAO Schwartz stores, its first victim to go down, they say that it is due to the advancement of Wal-Mart into the toy business which FAO Schwartz stores, have been selling. They also say that it will turn America into the Darwinian world of low wages, bankrupt competitors, poor health services, poor down towns and rural areas in America as well as loss of jobs due to imports. However, Robert B.
Reich, a professor of social and economic policy at the Brandeis University and the former labor secretary said that Wal-Mart if the most logical end point and the future of an economy whose aim is to get the best deal out of its operations. Other supporters say that Wal-Mart is an economic virtue rather than a vice because it forces efficiency of suppliers while the gains of the act being passed and felt by the customer at a low cost.
Economists continue to say that lower prices for basic goods that are provided by Wal-Mart such as food and clothes are of the greatest benefit especially to people who have low living standards in the United States. Analysts continue to say that the cost of grocery has reduced at an average of 10 to % in the areas where Wal-Mart has ventured.
Economists such as Michael Fox further say that the greatest thing that has ever occurred to the low income earners in the United States is Wal-Mart because it helps them to stretch their dollar to get things they would otherwise afford in normal circumstances. Many analysts regard the operations of Wal-Mart Company as the simplest way in the inevitable drive to making the economy more efficient and friendly to the people of the United States. They say that the company is very tough and totally honest and straight forward with its dealings with vendors.
The federal bureaus of intelligence as well as the state regulators have increasingly scrutinized the growing power of Wal-Mart, but so long as the company keeps its low prices on its products, they will eventually be reluctant to act on anything else apart from the prosecutions related to employment infractions in the company. (Lohr F6). It can also be said that Wal-Mart has helped other countries such as China. This is because China has become the cheapest and the most reliable plat form in the country.
It has been able to source 25 billion dollars on imports annually which means that the country has been able to make large productions. Wal-Mart has also led to job creations in the country therefore improving its economic status as well as improving the living standards if its people. (Smith p11). It would therefore be concluded that Wal-Mart is of great importance to the United States citizens as well as its economy since it brings more advantages than disadvantages to people.
Though the company has been criticized, all the arguments against it have been out weighed by its use in the economy. Many other countries that have low employment vacancies have gained job opportunities through Wal-Mart, people with low incomes and living standards are able to spend their money economically by shopping in Wal-Mart, it has improved the economy of the country and its people by offering job opportunities and deriving large incomes which is good for the growth of the country.
Biesada Alex. Wal-mart stores, Inc, retrieved on October, 13, 2006. Dow Jones, is Wal-Mart good for America? The wall street journal, Saturday December, 3, 2005. Lohr Steve, Ideas and trends: discount nation is Wal-Mart good for America? New York Times, Late edition, December 7 2003. Smith Hedrick, is Wal-Mart good for America? The Washington post, November 2004. Thomas Sowell, is Wal-Mart good for America, capital magazine? 9th December, 2003, http://www. pbs. org/wgbh/pages/frontline/shows/walmart/