Is Walmart Good for the US Essay Example

enterprises competing with Walmart have filed for Bankruptcy largely attributed for failing to keep up with Walmart’s standards. New York Times’ Steve Lohr explains it is because Walmart contains all domineering traits correlated to Darwinian Theory of survival. In light of the previous statement, other credible sources have demonstrated that having monopolies which momentarily serve the whims of consumers on their own and run unfettered in the market is not the best idea for a “free market” such as America. This is referring to America as a whole especially since monopolies are currently an ongoing trend in it. A good example is Charter communications which would under these circumstances represent Walmart. Walmart has managed to phase out a smaller firms like Schwarz stores and even gone as far as to absorb their workforce. This is merely to demonstrate that Walmart is a merciful adversary yet not good for business for the likes of Schwarz and others like them on a level field. The New York Times Steve Lohr has branded Walmart’s activities with the words “Walmart outcome” (Lohr, 2003).

Charter Communications the Mother Network

Charter communication was on two thousand and fifteen trying to acquire the Time Warner Cable and Bright House Networks according to Aljazeera which they have now done, for Time Warner cable is now part of Charter Communications. While Charter communications is largely business driven, the paper still understands that Charter communication’s acquisition of smaller firms other than themselves, impedes on smaller firms right to compete within them, giving Walmart or rather Charter Communications larger market shares in the long run. Maybe the American dream is a bit of a stretch but News rooms

such as the ones mentioned previously and regarding equal opportunities to conduct business are being bottlenecked into single pipelines as Charter communications all over America. Meanwhile, futuristic estimates of the phenomenon show it to likely advance recurrently. While, it may not be apparent that people are losing jobs and health benefits from the losing firms filing for Bankruptcy up to this point. Some other parts of America especially those dealing in the supply and retailing industry have experienced stagnated growth regionally, owing to the aforesaid phenomenon coined as the Walmart outcome (Johnstone, 2015).

Lessons from Adam Smith about Competition

The reader should bear in mind that more futuristic control of even more vital industries like the Networks earlier mentioned within the US economy could provide more dependable insights as time continues to lapse with regards to Walmart, according to Aljazeera. Sure, Walmart’s loyal consumers may think this to be an achievement while, Scholars like Adam Smith would differ on many accounts. Adam Smith cautions that while competitors may simply not be as cheap as Walmart, the likeliness that Walmart turns authoritarian to its customers is quite likely in the foreseeable future. Well, it is because consumers according to Adam Smith stand to gain a lot from competitive market than not having competition at all. This is given competition is also what is responsible for Walmart’s pricing. The reason Mr. Adam Smith gives is that once conglomerates like Walmart have gained the market they can then act on the interests of the conglomerate(s). The statement implies that conglomerate(s) can then drive prices up or down depending on what they expect their profit margins to reflect for that fiscal

year. And because nobody is there to challenge them they can get away with it. History has shown that monopolies in other similar industries like the railways industry in the US’ eighties and have confirmed the vicious cycle, according to Aljazeera (Johnstone, 2015).

Unemployment and Pitfalls in the Federal Reserve

Walmart plays a critical role in the US economy according to Emek Basker studying the consequential growth patterns of Walmart’s continued existence as of two thousand and seven. Basker’s whose study revolves around the two thousand and seven period says that even then Walmart was quite popular with the consumers. Then, Basker talked about a growth rate of six point five which continued to increase by the end of the year (Basker, 2008, p177). The indication of the growth exhibited surpassed even those of Walmart’s competitors like Costco, Sears Holdings among others. Even then Walmart still sold a great share of their supplier’s products and owned larger stakes in markets like Argentina, El Salvador, and Honduras among others. Later in two thousand and five many homes did not live that far from Walmart outlets which also later revealed Walmart stores competing amidst themselves (Basker, 2008, p184). Walmart’s popularity became over the years largely facilitated by Walmart’s ability to get what consumers wanted technologically, taste wise and accurately predicting when they were needed them (Basker, 2008, p188-189). There was no room for single stores and Walmart was exploiting these opportunities. Then, with time it became noticeable that among these stores like Walmart, Costco and others of their kind demonstrated dominance of the Sales market and improving by the year ended (Basker, 2008, p192). Walmart employed workers by the

Millions from the competitors who filed for Bankruptcy as was earlier stated but for limited number of positions. Meanwhile the government sat back as Walmart was also among the highest earners for the government and campaign funders (Basker, 2008, p183). This is aforementioned statement is according to Walmart’s sales projection and government election for the nineteen eighties up to two thousand and two and two thousand and five respectively (Basker, 2008, p194-195).

Conclusion

Walmart the subject of discussion can be argued as one of the best conglomerates to ever subsist and or be named the worst foe to single retail business owners to ever exist. Walmart existence for the past five decades leading to more than few single business owners and other chain stores alike to close up shop is proof. This is attributed to the services they offer and at what cost like no other. Their suppliers on the other hand are forced to play by their rules and Walmart has promised and delivered the impossible but at their suppliers’ peril. Allegations and investigations of watered down wages or incomes have been issued and not proven which other than have seen no encumbrances as to the running of the business. Walmart dominate wherever they go as the paper has shown, and will continue to do so if they are competing amongst themselves as the paper has indicated earlier on with Walmart and others like Charter Communications taking over the market. The paper does not wish to water down the findings any further.

References

1. Basker, E. (2008). The Causes and Consequences of Walmart's Growth. Journal of Ecomomic Perspectives, 177-198.
2. Johnstone, D. K. (2015, May 29). Monopoly power tightens
   

grip on US economy: Charter Communications bids for greater control of broadband. Retrieved September 14, 2016, from Aljazeera : http://america.aljazeera.com/opinions/2015/5/monopoly-power-tightens-grip-on-us-economy.html