Wal-Fail (Effects of Walmart on the Economy)

Topics: Small business, Sam Walton, Wal-Mart: The High Cost of Low Price Pages: 2 (602 words) Published: May 26, 2013
Wal-Mart does not benefit the American economy. It is a privately owned business that was established in 1962 by Mr. Sam Walton in Bentonville, Arkansas. Walton opened Wal-Mart as a one-stop shop providing services at unbeatably low prices. Wal-Mart has opened many stores, and its development dominating most parts of the American society. Arguments have been raised on the implications of these low prices to the U.S economy and its communities. Film maker Robert Greenwald highlights the impacts of Wal-Mart on small American societies in the film, "Wal-Mart: The high cost of low price." Greenwald has covered different aspects of Wal-Mart in the film like increasing government spending, eliminating small business and abuse of workers. According to Greenwald, overreliance on Wal-Mart has negatively impacted the American economy and society, both locally and internationally. The film makes use of firsthand information from interviews conducted by Greenwald on individuals that have faced the impact of Wal-Mart’s reign. Since its establishment, Watson had promised customers and workers great services by offering goods at low prices. According to the film, Wal-Mart has established its retail business in local areas where large retailers are not available to avoid competition. As a result, they drew attention of many small community consumers because of their cheaper prices and variety of differentiated products. This has caused havoc to small business, which have been wiped out because they lack the potential to compete with this retail giant. Lack of competition has enabled Wal-Mart to dominate its business at low prices because they have captured all customers (Fishman 23). The film captures employees from Wal-Mart who are denied most of their rights. They are dissatisfied with the mechanisms of operation at Wal-Mart like low wages. As a result, they have been forced to rely on programs funded by the government like Medicaid because their...
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