Some Americans believe that because Wal-Mart advertises “always low prices,” it is a great place to shop. Wal-Mart campaigns on its bulletin boards and on-line that the American family can save an average of $2,500. 00 a year shopping at Wal-Mart. Karen De Coster and Brad Edmonds explain, “If Americans didn’t love Wal-Mart so much it wouldn’t be sitting at the top of Fortune 500” (255). De Coster and Edmonds go on to explain that people love Wal-Mart for the variety and convenience it offers while saving time and money (255).However, American people do not understand the financial effect that keeping “low prices” has on the taxpayers.
Receiving products from other countries comes at a cost to the American taxpayer and our government. Since Wal-Mart provides Americans with products from third world countries, the company is financially hurting America. By importing and exporting products made in foreign countries, Wal-Mart claims to be able to give consumers low prices. Wal-Mart claims importing products from third world countries is cheaper than to have the products manufactured in the United States.
It is reported that Wal-Mart imported $287. 1 billion worth of products from China in 2006 (Scott). Yet, Wal-Mart exported only 51. 6 billion dollars’ worth of products to China. Wal-Mart is responsible for a 17.
1 billion dollar increase in the United States trade deficit from 2001-2006 (Scott). Ray Bracy, Wal-Mart’s vice president for federal and international public affairs, estimates that Wal-Mart imports approximately $15 billion in goods from China each year.Bracy argues Wal-Mart’s main concern is getting the consumer the lowest possible price and that negotiating with suppliers is the best way to achieve it. However, if Wal-Mart had to get the products from the U. S.
, they would have to negotiate prices with the vendors instead of telling the vendors what price Wal-Mart is willing to pay. Bracy stated that “U. S. manufactures are being squeezed by the high costs of doing business in America with the cost of health care, tax rates and regulations”.So, in order to keep the “lower prices” Wal-Mart is buying more goods from China.
Wal-Mart estimates it spent $15 billion on Chinese-made products in 2003, accounting for nearly one eighth of all Chinese exports to the United States” (Goodman and Pan). If the United States would manufacture more products there would be less importing and more exporting, which would be more money for the U. S. Because of the large quantity of products Wal-Mart receives from China, it has displaced over 200,000 jobs in the United States (Scott).
With retail on the rise and manufacturing being moved from the U. S. , Wal-Mart has taken away from the American people.According to Mulder, “every new Wal-Mart that is opened brings 350 jobs to the area, but most of these will be part-time jobs that include few benefits.
” Additionally, the community will lose one and a half full-time jobs for every part-time job at Wal-Mart. With the unemployment rate on the rise and Wal-Mart only offering part-time jobs, it is hurting the economy and the American people, because employees need full-time work in order to have benefits. Aflcio. org shows that between 1989 and 2003, because of the trade deficit, the United States is out of approximately 1. million jobs that either moved overseas or were never created because production moved to China.
Because of Wal-Marts actions it is hurting the American job economy and the people. It is taking away from us but helping out the foreign countries. America is the land of opportunity, but if there are no jobs, then there are no opportunities. Wal-Mart can offer cheaper products to consumers because they buy in bulk and have products manufactured out of the United States in foreign sweatshops.Wal-Mart can make vendors meet prices instead of negotiating. Because Wal-Mart requires such large quantities, they want to pay cheap labor so they can afford to offer Americans “lower prices.
” Although, cheap labor comes at a higher cost. Wal-Mart has many manufacturing shops in China, in fact, the Washington Post reports, “more than 80% of the 6,000 factories in Wal-Marts database of suppliers are in China. “The average pay in China is about three cents a day and some workers might be able to make ten cents a day” (Goodman and Pan).Workers in China work 80 hours or more a week, unless a quota has to be met, then they will continue to work until the quota has been met.
In many Chinese sweatshops health and safety violations occur and child slave labor is used. For example, Megan Cate points out that” in Qin Shi factory in China, thousands of woman work 98-hour weeks but profit less than $22. 00 weekly. ” She goes on to explain that the people working at the sweatshops also suffer inhuman conditions due to all the hazards that are in the factories/sweatshops.As unsafe and unhealthy work environments continue Wal-Mart is hurting people more than helping them with the violations that are occurring in the sweatshops consumers need to see that because of the “lower prices” many people are treated unfairly and unjustly. Most importantly, the low wages and lack of affordable health insurance Wal-Mart offers its employees is not up to par with the economy.
Mulder shows that “Wal-Mart’s average wage is $20,774 a year and the federal poverty Level is $22,050 for a family of four. ”With Wal-Mart being the largest retailer in the world, and making a profit of $13. billion dollars in 2009, they could offer their employees more (Rosenbloom). Because of the low wages, the employees have to look for assistance outside of their employment. That means that employees are turning to state and federal assistance to help with everyday expenses. Employees are getting help from Section 8 housing, energy assistance, federal tax credits, free or reduced meals for their children and even health care.
All of these programs are funded by the state or federal government and it is the taxpayers who are paying for such programs.Wright estimates that one 200-person Wal-Mart store may result in an excess cost of $420,750 a year for federal taxpayers. All in all, it is costing Americans more to have the “lower prices. ” A person has to ask, is it worth it? Are “lower prices” worth the cost of the American economy and downfall it has taken? The store that once stated that “Buying American” products is the way to go, is no longer carrying American products. Frank Yuan, a former middle man who has done business with Wal-Mart states, “If you look at Wal-Mart’s shoes or housewares, 80 or 90% are made in China (Hornblower).If China is already supplying 80-90% of products, Americans have to ask what will be left for the American people to supply America.
If Wal-Mart would bring the factories back to the United States, it would help the economy, the trade deficit, and the American people. Lastly the American people need to see that Sam Walton founded Wal-Mart with the intention of selling “American products” to “American People”, while focusing on providing many different goods at discounted prices and to keep his stores open longer than his competitors, even during the Christmas season (Walmartstores).Although, Sam has stayed open longer than most competitors, his stores are not carrying on with selling “American products” anymore. After taking time to contact Wal-Mart at many area stores I was given the run around about the information I was requesting.
I was given the run around by all store managers I spoke with. They could not talk to me about any information, they stated the information that is posted on the website is all the information they can talk to me about and if I had others questions I could contact the home office in Arkansas.I contacted Wal-Mart in Arkansas and even sent many different e-mails. When I made contact with the Home office in Arkansas and asked if I could interview someone for a paper, they stated to me that they had nothing to say and that they would only speak to a member of the media. I thought this went to show that Wal-Mart does not stand behind the consumer and they don’t care to address the concerns of their shoppers. Americans need to understand that this was not Sam Walton’s dream of the American store.
Wal-Mart is actually hurting Americans rather than helping them.
