Is Walmart Good for America?

Is Walmart good for America? The way Walmart does business shows the changes that the retail giant has done to the American economy. The power and influence of Walmart is impressive and changing dramatically the balance of power in the business world. Now, according to what we can see about Walmart, retailers are more powerful than the manufacturer, and the manufacturer becomes the underling who has to do the bidding of the retailer. This has causes small businesses close their doors and move away from American territory in search of cheap labor. The best example is China, which has become the largest exporter to the United States, and the leading provider of Walmart. Many American companies have moved to Chinese territory, in search of cheap labor and consequently their quality standards have declined and have adapted to the demands of giants like Walmart, influencing living standards of Americans, who consume dairy products offered by Walmart at competitive prices.

If we look only as consumers, buying at lower prices is undoubtedly a good thing. But those same consumers are also employees of Walmart and they need to have a decent wage and a standard of living according to the United States. In this regard economist Larry Michel (2004) form the Economic Policy Institute, said: "The dynamics that create lower prices at Wal-Mart and other places are also undercutting the ability of many, many workers to earn decent wages and benefits and have a stable life."

Michel, H. (2004). Retrieved from: http://www.pbs.org/wgbh/pages/frontline/press/2304.html