Wal-Mart: Good or Bad? The largest corporation in America with $378,799 million in revenues and employing 2,055,000 employees, Wal-Mart has become one of the greatest success stories in American history, but also one of the most controversial stories since Standard Oil (Fortune). But with all big business comes critics. Today’s critics suggest Wal-Mart unfairly uses it power of size, which is goliath, to exploit employees and impoverish nations, ruin competition, and place undue pressure on the government. However, one item most critics fail to mention is that Wal-Mart creates consumer welfare. Throughout this paper, I will analyze each criticism of Wal-Mart and sufficiently cite evidence proving the greater good that is realized with …show more content…
However, this could not be more wrong. First off, all of the employees in other nations who flock to Wal-Mart’s factories have the choice to do so. Even though the wages paid in third world nations is inconceivable in United States, those wages will still increase the employee’s income, which in turn increases the employee’s standard of living. The increases in standards of living will lead to economic innovations and increased productivity/efficiency. This process of evolving mirrors that same steps that the United States went through in its early beginnings as well. Secondly, critics want Wal-Mart to enforce labor laws in its overseas factories that are consistent with United States. However, Vedder refutes this demand stating, “We have no more right to expect Wal-Mart to enforce Chinese labor laws than the Chinese have the right to enforce ours” (Vedder). Clearly, this criticism is without reason and impossible. In addition, the regulations and laws in third world countries are not kept up to date as well as in America, not everyone has a birth certificate or passport proving their age. It is unreasonable to assume that Wal-Mart would be able to verify the ages of every single employee in Indonesia or China. (Vedder) Wal-Mart is a Burden on Governments Critics, also, attempt to darken Wal-Mart’s public image by stating that they do not
This article is written using an enlightened self-interest approach. The author describes Wal-Mart behaving in a way that increases its own benefits, with the outcome of their actions being the most important consideration. An example of this is the author’s notion that Wal-Mart’s low prices are due to “the exploitation of its workers” (McLachlan, 2009, pg. 289), “systematic use of ‘maquiladoras’ in conditions of extreme exploitation” (McLachlan, 2009, pg. 289), and Wal-Mart’s threat to move production to China to obtain lower prices. In this article, the author implies that Wal-Mart’s actions demonstrate that they are not concerned with finding the most ethical behaviour; they are merely interested in the action(s) that most closely achieve their goal to remain the “biggest chain of direct sales to the consumer in North America”. (McLachlan, 2009, pg. 289)
On the other hand, Sebastian Mallaby cares for the customer and the profits of the company, rather than the worker and their working conditions and wages. He suggests that Wal-Mart actually saves people money and is “a progressive story” (620). Their discount on food alone increases the welfare of the shoppers by fifty billion dollars a year. If you were to count all of Wal-Mart’s products into that same estimate, it would increase ten times. “This is very good news for poor and middle class families,” says Mallaby, because in this situation the customer really comes first. Even though the workers are not treated the best, they still have an advantage over the shoppers. They have less pay, but receive discounts on all of Wal-Mart’s merchandise whenever they shop there, which should be a plus for them. Compared to most companies Wal-Mart
In 1962, Wal-Mart opened their first store in Rogers, Arkansas. In 1970, Wal-Mart's first distribution center and home office in Bentonville, Ark. open and Wal-Mart went public on the New York Stock Exchange. Just nine years from that, Wal-Mart's annual sales exceeded one billion dollars. In 1988, Wal-Mart super centers opened across the country. In a merely three years from that, Wal-Mart opened their own store in Mexico City, Mexico; making Wal-Mart an international corporation. Not even sixty years has past, and yet, Wal-Mart is over-powering our country.
Wal-Mart, the multi-billion company and the second largest employer in the world, is the most controversial corporation in the world. Wal-Mart is a global powerhouse and affects many people around the world. Wal-Mart is constantly getting attacked from unions, human rights groups, small towns and small businesses. Wal-Mart is accused of treating their workers poorly and driving small businesses out of business. But however these accusations are false or over exaggerated. Wal-Mart offers families and low income people quality products. Also, they pay their workers competitive wages and treat them with respect. Wal-Mart opens their stores in rural and under developed areas. Wal-Mart improves the lives of the people who live rural area and
Some may claim a Walmarts’ arrival in a community is helpful to improve the growth and development in the community, but others tell a different story. Many claim that a Walmart is great way to create new jobs in the community. They are partially right, between construction and development, plenty of jobs are created. Also, about 300 retail jobs are created based on the amount needed to run a Walmart super center twenty fours a day, seven days a week. However, Kenneth Stone, a professor of economics at Iowa State University, conducted a study in which two Super Walmart centers in two different states were evaluated. The study lasted about two years and showed that for every one job Walmart had created, 1.4 jobs were lost in local communities (Davidson 1). Walmarts’ low prices come with additional costs that we are
Its size, power, and low prices are what make Walmart so helpful to America. So why do some people think that Walmart is so bad for the American people? Many people believe that this is a true debate. Everyone has his or her own point of view. If you think about it, is Walmart really good for America? Walmart has made many changes since it was first opened in 1962, by Sam Walton. By August 31, 2014 there were 11,095, retail Walmart stores and there were 642 Sam's Club's. After going over all the facts, Walmart is good for America.
Walmart is the world's largest company by revenue (approximately four hundred and eighty billion dollars) and the largest private employer in the world with two point three million employees. Walmart is also one of the world's most valuable companies by market value, and is also the largest grocery retailer in the U.S. “One Nation Under Walmart” is a case about how Walmart has taken over the retail business and the effects of their market domination. The case also shows statistics of how much percentage Walmart is of many suppliers’ sales. According to the case Walmart has a 30% market share of all household items. Twenty-eight percent of Dial’s business and twenty-four percent of Del Monte’s business go through Walmart stores. It is also worth noting that Walmart imports ten percent of all United States imports from China. The case states that Walmart is able to offer cheaper prices because they put so much pressure on their suppliers to lower their prices. The case, “One Nation Under Walmart”, explains the problems that some people have with the massive retailer. One of these problems is how Walmart has forced numerous local businesses to close their doors through their extremely competitive pricing. They are able to purchase bulk goods at such low prices and thus pass the savings onto customers. As a result of these lew costs, rivals are driven out of business which results in a loss of jobs. Jobs are vital to the success of a community and with Walmart causing job
Wal-Mart founded in 1962 by Sam Walton is now the largest American retail corporation. With thousands of chains of stores and warehouses Wal-Mart monopolized the American retail industry. In addition, Wal-Mart is the second largest retail corporation in the world employing of two million employees world-wide. As one of the most valuable corporations in the world Wal-Mart continues to improve their sales annually while offering some of the lowest prices available. Wal-Mart’s famous low price guarantee, come at a high expense of the environment, the small businesses, education, the rights and safety of the consumer, but most importantly their employees. Although Wal-Mart has plays a dominate role in American economy, this “American”
Wal-Mart, a "Big-Box Retailer" employs more than 2.1 million associates worldwide and has two-thousand seven-hundred stores in the United States with many more in Argentina, Brazil, Canada, Central America, Chile, China, Germany, Japan, Korea, India, Mexico, Puerto Rico, and the United Kingdom, making Wal-Mart the largest retailer in the world. "Wal-Mart accounts for upward of 30 percent of U.S. sales, and plans to more than double its sales within the next five years" (Lynn 29-36). Why is Wal-Mart so successful, and is Wal-Mart actually bad for America?
Wal-Mart, the largest retail companies in the world (Farfan), plays a crucial role in American economics. No matter, I am at home or on campus, even when I was traveling in other states in America, there is always a Wal-Mart market nearby my location. Due to the super big market power Wal-Mart has, and people’s negative impression of large enterprises, there is always a debate about whether Wal-Mart is good for America or not. Some people believe Wal-Mart makes the small retailers fail, and its workers have low wages and benefits; while others argue that Wal-Mart creates more jobs to the local, provides lower prices to consumers, and encourage American economic growth. Inspired by an article about whether Wal-Mart is a monopoly I read in my economics class, I am curious about the economic impact of Wal-Mart.
Wal-Mart is now the largest grocer, largest retailer, largest corporation in the world. "If Wal-Mart was a nation, it would have a bigger economy than 80 percent of the world's countries"(Singer and Mason). About "138 million people go to one of Wal-Mart's 5,000 stores in the United States and nine other countries", and purchase more than $300 billion every year (Singer and Mason). With a 1.6 million global workforce, Wal-Mart has become the biggest private employer "in the United States, as well as in Mexico and Canada"(Singer and Mason). "Wal-Mart already has 11 percent of all U.S. Grocery store sales," and "by 2013 that figure is likely to rise to 21 percent"(Singer and
“Up Against Wal-Mart” by Karen Olsson, a senior editor at Texas Monthly and who’s article appeared in Mother Jones, introduces her article through the perspective of a Wal-Mart worker. She focuses on the negatives of Wal-Mart by telling the real life struggles of different Wal-Mart employees. “Progressive Wal-Mart. Really.” by Sebastian Mallaby, a columnist for the Washington Post, focuses his article on what Wal-Mart critics say and attempts to defend Wal-Mart by comparing Wal-Mart to other retailers. Even though Karen Olsson and Sebastian Mallaby both examine the negative effects of Wal-Mart, Olsson berates Wal-Mart’s unfair treatment towards employees and the unlivable wages that the world’s largest retailer provides while Mallaby
Wal-Mart represents the sickness of capitalism at its almost fully evolved state. As Jim Hightower said, "Why single out Wal-Mart? Because it's a hog. Despite the homespun image it cultivates in its ads, it operates with an arrogance and avarice that would make Enron blush and John D. Rockefeller envious. It's the world's biggest retail corporation and America's largest private employer; Sam Robson Walton, a member of the ruling family, is one of the richest people on earth. Wal-Mart and the Waltons got to the top the old-fashioned way: by roughing people up. Their low, low prices are the product of two ruthless commandments: Extract the last penny possible from human toil and squeeze the last
Whether it's a brand new 59” LCD widescreen television or merely a pack of gum, each purchase you make from a Walmart store inadvertently results in a higher price paid; both within your community as well as the greater world around you. Relying entirely upon you-the ever consuming scavenger – to fuel the bustling utopia of the manufacturing industry, exists Walmart. More importantly, Walmart relies upon the oblivion towards matters outside of our own lives that we as society generally project. However, by looking past our own greed in a world full of price cuts and sales, we can expose Walmart for what it truly is; an entirely corrupt corporation feeding off of countries' vulnerabilities and reaping the benefits.
 Illustrates low prices and at the same time, not portray a cheap image to consumer.