Wal-Mart
Mega-retailers give consumers what they want at low prices. Major corporations like Wal-Mart and Target are booming with profit because of this seemingly simple equation, but is the end result beneficial for the economy? The individual who is shopping at these convenient all-you-ever-need stores would agree that yes, the prices are low and the products are good enough for their simple wants. However, the truth is that companies like Wal-Mart ultimately reduce competition, leaving our economy with fewer jobs in the U.S., a decrease in innovation and the many closings of small businesses. When a Wal-Mart opens for the first time, many jobs appear to be available. There are countless departments within the store, opening opportunities for people in the area that would settle for a minimum wage salary. Unfortunately, as many jobs as there are in this particular Wal-Mart, many more become available to China. As Is Wal-Mart good for America? States, “Wal-Mart has a very close relationship with China.” After a closer inspection on the subject, one might find that Wal-Mart’s relationship with China seems a bit closer knit than with the country it’s supposedly serving; The United States. The video also tells us that, “Of Wal-Mart's 6,000 global suppliers, experts estimate that as many as 80 percent are based in China.” With wages only at fifty cents an hour, Wal-Mart uses the unbeatable bargain of Chinese workers to increase their profit. This is wonderful news for the corporation, but Americans will be at a loss for thousands of jobs. Unless wages increase to a respectable standard in China, such as what we have as 7.25/hour in the U.S., Wal-Mart will continue to abuse the power of foreign goods to stay ahead in the market and reduce competition. Along with job loss because of foreign goods, a reduction in competition means a reduction in innovation. Without the ability to compete with the power of Wal-Mart, companies’ profits will plummet and they will spend their money trying to stay afloat instead of working to a new standard of production. If anything, other companies will copy Wal-Mart’s “trading expertise” to stay in the game by sending work to China. This only decreases the jobs in America and the chance for better ideas and products. Companies with the sufficient amount of money and supply will be able to make changes, but broader scale technological advances won’t be made without more competition and an incentive to be creative. Along with reducing competition, Wal-Mart forces many companies making products in America to shut down. American made products are more expensive because of our standards of labor, and Wal-Mart and other major retailers are able to cheat the system by utilizing factories in China. Unfortunately for many small