Walmart Yields Economic Growth
Walmart Yields Economic Growth
Walmart is a retail giant that is growing to be one of the most powerful and wealthy corporations that is beginning to assert its dominance over its competitors within the industry. Walmart is good for society because it is an enterprise that stimulates any economy, whether it is national, meaning the American economy or international by establishing itself and seizing a percentage of the desired market. What sets Walmart above its competitors, while remaining a good corporation, are its low prices, variance in products and economic stimulation. These things make Walmart good because the consumers are happy with low prices and they could do all of their shopping at the same place. As for economic stimulation, Walmart creates jobs and saves people money. Now how much does Walmart’s low prices save for consumers? How does Walmart help people who do not shop there? Today, Walmart is a superpower among retailers and is only headed towards more success.
Firstly, Walmart is good for the economy because it creates many jobs for Americans and foreigners alike. Walmart is one of the largest American corporations, but it has many locations all around the world. With its many locations Walmart employs over 2 million people worldwide, which helps develop the American economy and foreign economies as well. With this swell of new jobs created in countries with Walmart's, these countries being to experience the “Walmart Effect.” “The Federal Reserve Bank of Minneapolis studied the “Walmart Effect and the study showed that between 1985 and 2003, personal income, overall employment and retail employment grew faster in countries with a Walmart than those without one.” What this means is that when Walmart locations are opened in new countries those countries will see an increase in the number of jobs. Since the number of jobs and employment rate are directly related to one another, when a Walmart opens, the employment rate and personal income grow faster. When one Walmart opens in a new country more locations tend to open because many consumers are attracted to Walmart’s exceptionally low prices. With more locations more jobs are created and more consumers are spending money which stimulates the economy. Walmart is one of the few corporations that can strengthen the American economy and foreign economies while still maintaining low prices for its consumers.
Walmart is a business that was built on one of the smartest and simplest market schemes ever, low prices. Quite simply having lower prices than its competitors puts Walmart ahead of the competition because the average consumer will shop at Walmart first knowing that he can save money. Americans and foreigners alike can save from Walmart’s low prices. “In a market economy, success goes to those businesses that best and most efficiently serve consumer needs.” This means that in a market economy, if a business can efficiently satisfy all consumer needs, success can be achieved. Walmart is a prime example of this. Walmart has a range of products to serve all consumer needs at an affordable price that the consumers are happy with. With Walmart’s low prices “US consumers have saved over $18 billion per year.” A figure of $18 billion saved through Walmart’s low pricing is music to a consumer’s ears, and only makes them want to continue to shop at Walmart. Another thing that people do not realize is that Walmart’s low prices also help consumers who do not shop there. “Walmart also ensures that competitors like Kmart and Target keep their prices in check.” This means that because of Walmart’s low prices, its competitors like Kmart and Target will need to adopt the same prices in order to retain its customers. Moreover, Walmart’s low prices indirectly help everyone because consumers who do not shop there will still pay the same low price that Walmart has because the competitors will adjust their prices. With this being said Walmart greatly improves and stimulates the economy because, its low prices force competitors to have low prices, which in turn means that people will consume more, not only at Walmart but at competitors as well, which leads to more spending and eventually a strong economy. Lastly Walmart is also one of the most accessible retailers. “Nearly 90 percent of Americans live within 15 miles of a Walmart store.” This means that Walmart is close to many people in the United Sates and with its low prices leads to more savings for its consumers. With Walmart’s great geographic locations and low prices more people chose to shop there, which indirectly leads to a stronger economy because more money is being spent. This geographic trend is also beginning in foreign countries as well, which will also strengthen their economies. But, like many retail giants, Walmart is not perfect and also has its defects.
Many people believe that Walmart has a negative influence on the economy because it eliminates jobs from local businesses. While this statement is true, when a Walmart opens it creates more jobs than it eliminates. Another thing to consider is that, when one Walmart opens, more locations tend to open after the original one which creates even more jobs than local businesses would. Many people also think that Walmart is bad for the economy because it also eliminates local businesses. The fact of the matter is, that Walmart eliminates local businesses, but that is due to free market and capitalism, which helps the economy grow and it also brings savings to consumers. If it wouldn’t be a Walmart eliminating local businesses it would be another major corporation which may not create as much jobs or revenue as a Walmart would, therefore Walmart plays a major role in stimulating the economy in local communities. It is an understandable and reasonable argument to think that Walmart harms the economy because it eliminates local businesses and local jobs. As a result, of Walmart’s success in local communities, Walmart subsidizes this by creating more jobs and generating more revenue in local communities than local businesses would, which would only strengthen the economy.
In conclusion, Walmart is good for society because it is an enterprise that stimulates any economy, whether it is national or international by establishing itself and seizing a percentage of the desired market. Therefore the real cost of low prices is positive cost because the low prices attract consumers who spend money; with more money earned a new Walmart opens, thus creating more jobs. Lastly when money is being spent and jobs are being created they strengthen the economy. Walmart helps everyone, like consumers, workers and shareholders because it is a successful enterprise. Many people are quick to judge and criticize Walmart, while others support Walmart. Every major corporation has its “Pros and Cons” and Walmart is no exception. It is up to the consumer to decide if the “Pros” outweigh the “Cons”. At the end of the day Walmart is still good for the economy and is one of the most successful corporations around the world.