Wal-Mart: Wrecking the American economy one smile at a time?

This essay Wal-Mart: Wrecking the American economy one smile at a time? has a total of 1515 words and 7 pages.

Wal-Mart: Wrecking the American economy one smile at a time?

Wal-Mart: Wrecking the American economy one smile at a time?

In today?s world, it is all about making a quick buck. This can be seen by both sides of the spectra: large companies will sell products for less to entice more people to buy their products. By doing this, they are making a profit and driving their competition out of business and the consumer gets the product for cheaper. This really does not benefit anyone except for the corporate executives. By supporting large corporations, one is taking money out of their counties or cities? economy and putting it in the wallet of the big corporate pigs. From Wal-Mart to the Bestbuy, lager corporate chains are putting local hardware stores and other father-son esq. companies out of business.

The Problem
The ?made in the USA? sticker is getting harder and harder to find in this present day world of outsourcing. Since large corporations are able to have their products made in Asian and other third world nations where the labor makes an average of ten cents an hour in a sweat shop. In the United States, the minimum wage is six dollars and seventy-five cents, therefore, it cost a lot more to have product produced domestically. A product that might take an hour to produce with a cost of one dollar would cost a sweat shop one dollar and ten cents to produce as opposed to seven dollars and seventy-five cents in the United States. These two identical products can sit next to each other on the shelf, with a price tag of ten dollars, how ever when the sweat shop-made product is sold the producer will profit eight dollars and ninety cents compared to the domestic product with a two dollar and twenty-five cent return. When a company has the opportunity the profit an extra six dollars and fifteen cents, why would they pass it up? Also, because they are making such a profit, they have the ability to lower their prices. (Wal-Mart). This forces their competition who is selling American-made products to have to lower their prices as well to stay in competition. The big corporations have the ability to still lower their price below the production cost of the American products. (Wal-Mart). Because of this, such friendly, local second or third generation family owned hardware stores are unable to compete with places like Wal-Mart who are selling their product for less than the initial cost of the product to the retailer, and end up being forced out of business.
A common myth is that if a product is cheaper, it will inspire more people to buy it and help out our economy. This is false. In all reality, it is just a reverse form of inflation. Inflations occurs when more money is put into circulation; this usually causes a raise in the minimum wage triggering a chain reaction of events that involves prices for everything increasing. One may be making more money than before, however, the cost of living has also increased therefore they are not profiting anymore then they where before the wage increase. Also, raising the minimum wage hardly ever affects those who are making more than minimum wage causing them to find the cost of living increasing yet because their income is still the same, it is harder to get by. When people buy a product from a large superstore such as Wal-Mart for really cheap, they are hardly putting any money into the United States economy because the money from their purchase goes into the wallets of the corporate executives and the overseas sweat shops. (Wal-Mart). Not only are these superstores hurting the American economy, but they are also hurting the local economy of the community they go into. By offering the products at such a cheap rate, they are taking business away from the local retailers that are not be owned by Fortune 500 company. The money that should be going back into the community is being used to build other Wal-Mart?s around the globe.

The Solution
The solution that I propose to this problem is instating a tariff on all products made in foreign nations. If the United States government raises the price on all imported goods above the cost of domestic goods, if a company chooses to purchase a product from out of the country, they will essentially

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Topics Related to Wal-Mart: Wrecking the American economy one smile at a time?

Walmart, Business ethics, Socialism, Sweatshop, Minimum wage, Tariff, Economy of the United States, Labour economics, Walmart Watch, Walmarting, corporate pigs, corporate chains, sweat shop, bestbuy, large corporations, fifteen cents, american economy, five cents, wal mart, hardware stores, corporate executives, minimum wage, price tag, third world nations, spectra, present day, wallet, smile, money, united states

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