Jim Lee
Eng 101: Reames
December 2, 2010
Wal-Mart Greatly Impacts the U.S. Economy
Is Wal-Mart ruining the local businesses in America? Most professional business men can agree that Wal-Mart affects the United States economy in many different ways. Wal-Mart is an American public corporation that runs a chain of large, discount department stores. It is the world's largest public corporation by revenue according to the 2008 Fortune Global 500. However this corporation has contraverisal issues about how they do their sales and the long term affects they put in the economy. Professionals will agree that Wal-Mart has hurt many community businesses as Wal-Mart open in areas around them. There have been common statistics for when a Wal-Mart …show more content…
Neumark, Zhang, and Ciccarella (2005) also agrees on my idea of the topic of Wal-Mart by stating “There is also an academic literature on the impact of Wal-Mart stores, focusing on the effects of Wal-Mart openings on local employment, retail prices and sales, poverty rates, and the concentration of the retailing industry, as well as the impact on existing businesses” (Pg. 4). They are basically stating that Wal-Mart impacts many aspects of the economy because of how Wal-Mart conducts business. Also that the impacts are not in positive ways in which they should be when new competition arises. The fact that Wal-Mart beats out its competitors really easy is a scary weapon that Wal-Mart can abuse. In which they have abuse their power to buy bulk supplies by demanding the prices of whom they buy from instead of negoicating. Neumark, Zhang, and Ciccarella can all agree that Wal-Mart is ruining the local businesses in America.
Furthermore into this topic, most professionals will all conform that Wal-Mart affects the economy in more negative ways then positive. Arindraji, William, and Barry (2007) states that “estimates that exploit the spatial diffusion of Wal-Mart stores find that a single Wal-Mart store opening reduces the average retail earnings in a county by 0.5 - 0.9 percent” (Pg. 4). This is not good for any economy that when a new business is open that the average retail earning is lowered instead of increased. This just means that when Wal-Mart opens it loses