Wal-Mart’s Negative Effects in the Economy Essay Example

that had gone under because of the introduction of the grocery market in Wal-Mart. Diana Murphy, the shop owner of Windmill flowers had blamed the closure of the shop to Wal-Mart. According to her "There are a couple of things in play," Murphy said.

"The recession, terrorism. And Wal-Mart. It's had a direct effect on me, because they sell flowers, too.... They even deliver. " (Los Angeles Times, 2003) This had driven several businesses out of the picture. People consider the prices that they buy and lowest prices in town can be seen in Wal-Mart together with the delivery side on the Flowers had been adapted by Wal-Mart in order to crush the competition.

Driving Down Wages and using Illegal Immigrants as workers There have been information regarding the unjust wage practice that Wal Mart is giving to its employees. According to Mrs. Gray from Raley’s, her wage was $13. 89 while at Wal-Mart its $9. (Los Angeles Times, 2003). An investigation is being made whether Wal Mart uses janitors provided by subcontractors were noted to be illegal immigrants which had been cheated from their overtime pay.

Mr. Burt Flinger III, a retial consultant from Strategic Resource Group in New York implied that the giant stores of Wal-Mart takes away 200 jobs. David Moberg had illustrated the very low compensation of the associates of Wal-Mart. According to the study, (Moberg, 2004) Wal-Mart wages are low which averages from $9 for full time worker and $8 for the 45% who works less than 45 weeks a year.

It is further stated that Wal-Mart holds the wages down in the retail industry since it is considered as the biggest

corporation. A study made by Orange Country Business Council Forecast had noted that a single Wal-Mart can cause Southern Carolina $2. 8 Billion in lost wages, annual benefits. The grocers nearby would be cutting jobs and wages to the unionized workers.

Giving the workers the lowest possible wage is a bit of an insult to a worker.

Wal-Mart tells over and over again to treat their associates kindly. Looking back, the associates that Wal-Mart is talking about is its employees. As Sam Walton believes, the employees should not be treated as different. In the website of the company (walmartstores. com, 2008) it had been told there that Sam Walton had started the profit sharing among the company’s associates because he believes that the success of the company depends on the employees. But sadly, this is not being done anymore.