Impacts of Wal-Mart on American Society and Economy
Wal-Mart – one of the most successful multinational companies based in United States. Since its establishment in 1962, Wal-Mart has been the epitome of a successful public corporation. Tagged as the “Giant Retailer”, Wal-Mart boasts itself for being able to offer the cheapest products in the market plus great number of stores all over the United States. The Giant Retailer topped the prestigious Fortune 500 Largest Publicly Traded U. S. Companies from 2001 to 2005 and in terms of revenue in 2008.
These only suggest how large is the scope of Wal-Mart’s operation in the domestic market of United States. Furthermore, Wal-Mart has been regarded as one of the top contributors of United States’ domestic production and so with its GDP. With the said large size of Wal-Mart, it employs workers roughly equal to 2 million by the first quarter of 2008 in the United States alone. In other words, the existence of Wal-Mart in the market provides stability for the labor sector of the United States since it offers tremendous amount of job opportunities to American pool of workers.
Members of the manufacturing industry rely much on Wal-Mart as it serve as the main distribution channel of most manufacturing businesses in
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Despite of the above achievements and importance of Wal-Mart to various sectors of the United States, many are claiming of mismanagement that happens inside the floors of Wal-Mart. Human Rights violations, workers that receives salaries less than the minimum wage rate, failure to provide employment benefits, and other controversies regarding the management process of Wal-Mart each emerges one after the other into the retail industry and media (Armour 1). Though Wal-Mart provides gains to the U.
S. economy in a form of providing job opportunities in the labor market as well as market for manufacturing businesses, still, many are claiming that Wal-Mart performs unfair market competition and causes market inefficiencies by abusing its market power over its competitors which oftentimes leads for small retailers to shut down their operations. All of this issue, alongside with the benefits that Wal-Mart offers to the U. S. economy will be tackled later on as the discussion progress.