How does wal-mart destroy the economy?

Question

How does wal-mart destroy the economy?

Answer 1

huh

it builds the economy

It is the largst employer and has the largest payroll.

Wal-Mart pays more property and income taxes than anyone elseWal-Mart gives billions $$ to charity

Answer 2

By paying less and having so much clout, they have effectively lowered the pay scale for all retail workers.  Since so many of their employees are on public assistance, it means the US and state government have to effectively subsidize their employee's benefits.

Also owners of local stores usually frequent other local stores with their earnings and when they need to purchase things.  Since Wal-Mart is such a large corporation, those earnings are taken out of the local economy where they're earned.

Answer 3

plus they control a lot of the producers.

Answer 4

When large corporation try to corporate products like hardware, guns, food, clothes, etc into one place then try to hire less workers and expect more automation using self-checkout counter. This create a one size fit all for customer needs.

When they set a temporary lowest price, Walmart have a higher potential to win customer compares to small business.

Walmart are back by stock market compares to small business that can't afford high overhead for heavy marketing.

Walmart advertise through newspaper while small business are not likely to do it.

This is the reason why our US dollar is weakening because more small business is getting closed up. If you want to see high dollar value, look at UK and Japan. They have more small business compares to US.

Update: If you look at the earning from Money magazine, they were the top profit earning company. They made over trillion dollars but where do you think that trillion dollars goes? Stock trader, owner, store, future construction, and employee.

Income tax is alway the same according to the tax code. Walmart doesn't pay more on tax margin as oppose to other corporation. They do get certain deduction for donation for charities. But more likely, that large money earned from trillion dollars is being sent to the owner's pocket.

Walmart are doing nothing different than At&t. The stay remain as one company but try wholesale on variety of product.

Overall it is a yes and no, Walmart maybe bad but so is the corporation that is doing the samething.

What improve economy is a good heart from mankind and knowledge to be in position to help people providing jobs.

Walmart need to hire more workers and not act like K-Mart that went AWOL because there weren't enough employee to offer customer service.

Answer 5

You have to make a distinction between how Wal-Mart uses the available resources and how it pays the used resources.

Wal-Mart makes good use of the available resources. By bringing many different products under the same roof it uses large-scale benefits to use less resources. Which is a good thing. By buying goods where they are cheap (like in China), they allow to sell the goods cheaper. At the same time the local workforce can (should?) focus om more high tech jobs. The fact that such high tech jobs are not available is not Wal-Marts responsibility.

On the other hand, there is something wrong with how Wal Mart pays the used resources. I believe their wages are not high enough to be considered "fair" to their workforce. I'm not a big fan of unions but Wal-Mart is going too far. The money they save by using cheap resources is send to their shareholders, their top executives (and to pay corporate income taxes). The problem is that the ownership of these shares is concentraded in the hands of a small group resulting in an unequal distribution of total income and spending.

---- On a sidenote ----

It's not the unequal distribution of income that is a problem, it's the unequal distribution of expenses that is the problem. Income that is earned but not spend is always invested again. Investments results in economic growth, job creation and longterm general wealth. Income that is spend however only benefits a few and does not generate any growth at all.

History learns us that a society whereas most of the wealth is owned by a few (let say 0.1% of the population owns 80% of the wealth) will have a booming economy and everyone would benefit from it (and almost everyone will spend similar amounts), whereas a society whereas most of the wealth is owned by a small minority (let say 5% of the populations owns 80% of the wealth) has serious problems (a large group of people will live in poverty and economic growth will be low).

A society where everyone owns equals amounts of wealth (=communism) is doomed to put everyone into poverty because there will be no investments made.

Answer 6

They don't.  One reason they are ACCUSED of doing so is the vast majority of those that work there don't want unions because they are well treated and paid without one.  That doe not make union organizers happy.  They are also one of, if not the largest companies on the planet.  There is always a target on the leader in any field.

Answer 7

I dont think walmart destroys the economy, it just a business that sell things cheaper.