Upon closer inspection, it is evident that despite its status as the world’s largest company, Wal-Mart does not provide any advantages to the United States.
Despite its vast number of employees in approximately 3400 stores throughout the United States, Wal-Mart bears responsibility for job cuts and wage reductions. Consequently, the influence of Wal-Mart on America is unfavorable due to these layoffs and the prevalence of affordable imported merchandise. One particular factor that reinforces this claim is Wal-Mart’s distinct approach to attaining low prices. They have effectively altered the conventional auction process in which manufacturers establish prices and retailers must comply with them.
The implementation of Wal-Mart’s bidding process has caused several issues, such as manufacturers being compelled to reduce their prices in order to sell products at Wal-Mart stores. This price reduction subsequently leads to a decrease in worker wages. Furthermore, the outsourcing of jobs to China is resulting in a substantial decline in employment opportunities within America.
China has caused more than 1 million job losses in the United States, mainly affecting workers in industries such as steel and plastic, according to PBS Frontline. This shift is largely attributed to companies like Wal-Mart that prioritize maximizing profit over supporting local employment. It is worth mentioning that Wal-Mart is not always the most cost-effective option.
According to John Lehman, who worked at Wal-Mart for 17 years, the company frequently does not provide the lowest prices. Instead, they use a strategy called opening price point to attract customers into buying more expensive items. This has resulted in a significant loss of jobs in America as Wal-Mart continues to expand extensively. Moreover, their heavy dependence on low-cost imports totaling around $15 billion greatly affects American blue-collar workers. As a result, these factors clearly indicate that Wal-Mart has a negative impact on the United States overall.
They exert excessive control over smaller manufacturers, causing harm to America. This is why I hold the belief that Wal-Mart corporation is detrimental to America.
