Negative Effects Of Walmart On The Economy

2292 Words10 Pages
Is there a problem with Wal-Mart? Wal-Mart is one of the largest and leading corporations in the world. Through the advantages of industrialization including: increased production, cheaper products and higher quality goods, Wal-Mart is able to meet the demands of consumers for higher quality goods, convenience and cheaper products. However, there are still many negative aspects when it comes to Wal-Mart. Adam Smith, the father of capitalism, would mostly approve of Wal-Mart today, while communist philosopher, Karl Marx, would be troubled by Wal-Mart’s many problems. Overall, I would argue that Wal-Mart is beneficial to the American economy despite the problems it presents. Everyone, including the government, knows that Wal-Mart is big...and…show more content…
When opening a new business, businesses will need to make a profit before they are able to lower prices down for the convenience of consumers. This means that new businesses’ price can’t be lower than Wal-Marts, which lowers the demand of goods from that store, increasing the supply, which means a deficit in the business, causing them to eventually close down. But there are also benefits from Wal-Mart monopolizing these markets. Products for the community would be cheaper, which means more sales made and more sale tax goes to the city/town. It also means more job opportunity than maybe a smaller supermarket. Also, collectively as a community, there will be more people who do not own a business and more people who work in offices, which means that their pay is not always high and it will benefit more of the community with the cheaper products that Wal-Mart offers. Adam Smith will agree that Wal-Mart’s monopoly is due to its success and satisfying consumers and it should be like this because it will allow more competitors due to their own self-interest. For example, a Target might want to compete and offer the same or better service than Wal-Mart and in turn, to compete against that, Wal-Mart will offer an even better service and as competition between businesses go on, consumers will get cheaper products with the same or better products. Karl Marx would disagree. Wal-Mart monopoly of the market is unfair and unequal towards other businesses and that instead of monopolizing, it should share the market so that a community of producers (other than Wal-Mart) and improve the community as a whole and focus on the people, not their own self-interest. I think that this monopoly is good because it proves that Wal-Mart knows what it’s doing and can lead as an example to

More about Negative Effects Of Walmart On The Economy

Open Document