Wal-Mart is beginning to monopolize the lives of Americans and the American economy.
With over 9,700 stores in 28 different countries, Wal-Mart is the largest retailer in the Unites States and is slowly taking over internationally.
Wal-Mart was created in the hopes of offering the lowest prices to consumers and stocking the most-wanted merchandise. Wal-Mart manages to keep a low stock of their items and clear the shelves incredibly quicky. Their business model has become the wave of the future of America, however, Wal-Mart is stripping America of its small businesses and driving families from jobs.
Wal-Mart drives down prices for consumers, but steals away jobs from the American people while taking away the charm of an area by overrunning the local establishments with unbeatable prices.
Although providing lower prices may seem better, Wal-Mart has turned into a monopoly that can do whatever it wants. Wal-Mart has destroyed many of America’s most unique qualities as a nation by obliterating small businesses, exploiting workers and reaching a new status of low prices at an international cost.
With Wal-Mart’s dictatorship ruling consumerism in America, small businesses are suffering, which ultimately hurts the economy. Wal-Mart has grown to such large proportions that the chain is now able to dictate the pricing of their items while also negotiating with providers over an “affordable” cost for production materials.
Small businesses, on the other hand, do not have the authority or income to pull a stunt like this, and therefore, suffer from the losses. Since Wal-Mart purchases such an extensive amount of goods, manufacturers compete to please Wal-Mart, hoping to appear more appealing.
Therefore, each manufacturer is willing to lower their prices far enough so that Wal-Mart will buy their goods. Many towns in America have family-run stores, which are compromised in the face of the Wal-Mart Corporation; these small businesses cannot compete with the bargain prices Wal-Mart can afford.
Furthermore, Wal-Mart stores around the world have been using lower prices than actual market prices, causing larger corporations to also shut down. Businesses cannot defeat the power of such a large corporation, and thus, succumb to the monopolistic power of Wal-Mart.
Wal-Mart not only deleteriously affects the small businesses, but it also harmfully affects American taxpayers.
Wal-Mart’s abuse of government healthcare is damaging for America. Wal-Mart pays its employees so little that many cannot afford healthcare plans. In accordance, the healthcare package that Wal-Mart offers to its employees is so expensive that a sales associate, for example, would not be able to live off their remaining income after paying for healthcare. It is for this reason that store managers urge lower-level employees to take state aid instead. Wal-Mart purposely underpays its employees so that they qualify for state-run healthcare. Wal-Mart is not looking out for its employees.
Large factories are being driven out of American due to Wal-Mart’s franchise. Considering this corporation imports over 80 percent of its goods, Wal-Mart looked for the most efficient and cynical way to achieve their low prices.
Wal-Mart used to use American companies to produce the goods that it could then sell at the large centers. However, when bargaining for the lowest possible production prices, Wal-Mart officials determined that the cheapest labor was found outside of the United States.
It turned out that China offered the lowest possible production costs because laborers there are happy and willing to work at wages of $0.25 per hour. Even though this extortion violates any and all free trade policies, Wal-Mart, seeking the lowest prices, cannot pass up the manufacturing prices.
Competing against the Chinese factories, manufacturers in America, whom are required to abide by the minimum wage set in the United States, cannot compare to their Chinese counterpart. Therefore, Wal-Mart switched allegiance from American factories to the cheaper Chinese factories. It would be from this shift in allegiance that the jobs supplied by factory workers and the additional productivity of America has fallen.
Factories have been forced to shut down because they cannot compete with the foreign prices, and many Americans have lost their jobs as a result. Wal-Mart, by searching only for the lowest possible production rates, has caused significant damage to America’s industries.
Consumers see Wal-Mart as a great bargain and do not think twice about how these prices are achieved and who suffers.
However, the deterioration of the American factory system is a direct result of Wal-Mart’s low prices as well as small business destruction.
Surprisingly, Wal-Mart does not necessarily have the best deals, as advertised, but in fact, has created a circle of followers out of the pure convenience of the stores.
Wal-Mart is not good for America; their power over manufacturers has created a volatile environment among competitors, but has resulted in an overall loss to the Chinese factory system. Such a monopoly holds too much power over the American economy.