Is Wal-Mart bad for the Economy?
Wal-Mart is the largest employer in the United States, and the largest public corporation by revenue. While the argument can be made that the United States’ largest employer cannot possibly be bad for the economy, Wal-Mart’s habit of dominating markets and use of less-than-honest labor and business practices has contributed to the steady decline of the traditional American small business. Wal-Mart’s conundrum with the economy is that it provides premium services and goods at a price well below that of any competitor. The size and scope of the company’s operations allows for them to put pressure on the companies that produce these goods. Wal-Mart often uses outsourced labor and imported goods as a means of keeping the price tag well below that of their competitors, and this in turn fuels a major problem with the economy. These companies that have built their entire name and reputation around a quality product that people are willing to pay a premium for are now forced to remove that premium in order to deal with the largest retailer. Wal-Mart continues to profit and grow while its producers continue to suffer. You have to either play the game their way or suffer the consequences. While the end consumer benefits greatly from this practice, at what cost to the entire economic system? While the country deals with the worst economic downturn in years, Wal-Mart continues to thrive. Its business model is predicated upon greed. Not greed in the sense of attempting to gain and control all the money it possibly can, but rather all the business it possibly can. You can’t be a successful business these days without dealing with Wal-Mart. Their reach is simply too vast. They’ve become an unstoppable juggernaut of low prices and large quantities. If you want your product reaching a national audience you must put it on Wal-Mart’s shelves, and to do that you have to compromise what you’ve worked so hard to build: your image and standards....
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