What Impact Does Walmart Have On The Economy Essay

Introduction
The juggernaut retailer Walmart has been in the limelight many times for its dominance in the retail market. While critics of the firm are quick to attack the business for its deep discount prices and market pressure, Walmart continues to be a driving force for the American economy . The question that opponents and proponents often revert back to is what kind of impact is Walmart having upon the economy of the United States. Opponents often attack Walmart about the job loss that has arisen through its lifetime, while propoents of the retailer focus on the stimulating effect that Walmart has upon the nation. Though there are arguments to be made from both sides, this paper will assert that Walmart provides the nation with economic
This business model was redefined by Sam Walton during his initial Walmart launch in 1962, in which Walton would reduce his prices significantly and buy more goods in high volume . This enabled Walton to be more competitive in the retail market, and helped fuel the success of Walmart. When China and the United States struck a trade agreement in the late 1990s, Walmart was able to increase its margin’s further by buying lower costs good. As Chinese suppliers became the main source of goods for Walmart, American suppliers suffered from the transitions. Many of the current critiques of Walmart are targeted at the jobs lost to Chinese competition. Critics states that the losses have impacted the United States economy and manufacturing industry; as well say implying that Walmart has favored its profits over keeping American’s in work . The following analysis will demonstrate how Walmart has actually benefited the economy; and how the losses that have occurred have been offset by the gains Walmart has given to the
GDP is constructed of consumer spending, investment of capital by business, government spending, and net exports. The largest component of GDP is consumer spending. This is where Walmart contributes heavily to the United States GDP. Walmart brought in over 421 million dollars alone in 2010, and if that revenue was a GDP in itself, Walmart would have the 23rd highest GDP in the world . The strength of Walmart’s market comes from over 100 million consumers who spend upwards of $4000 a year in Walmart alone. This alone offsets the other argument that Walmart decrease the net exports of the country. True, Walmart’s exports have increase to 27 billion dollars annually, but the revenue that Walmart generates easily pushes GDP forward instead becoming a