http://www.youtube.com/watch?v=0Ga2fbim1F0
I introduce this video because that lady on the video also argues if Wal-mart is good for America, which related to the PBS video that we saw in the class. That lady thought Wal-mart is bad because they can pay for their employees insurance, but they don’t do so. They hire the part time employees in order to avoid some benefits, such as health care. Wal-mart leaves that to the government, which the low income people can get the Medicaid or Medicare from the government. Wal-mart, as a highly profitable retailor doesn’t take the social responsibilities, which is bad for society.
In the class, I learned that Wal-mart moves their supplies into China and squashes costs and then lowers their selling price that pushes the local companies into the awkward competitor situation. Those local owners have to lower their price like what Wal-mart does in order to keep their market share. That causes their profits declines. However, that choice made them speed up business dead. Once local businesses dead, the retailors will find more and more resources oversea, some local companies may move a part of their business oversea, which send out some of their high level employees to live and work in the foreign country. That would affect those leaders family directly.
Meanwhile, those blue collars, which have contributed their whole lives for those local companies but when they get old and almost can get their Pension but have to face unemployed or lay off. Some might not to find a new job because of the recession time. Also, most of them don’t have specific skills or strengths that our digit information rich society is looking for. That will also increase the rate of unemployed. Some may still have the abilities but who will pay for the bill of retraining? Probably, the local government should do so. In that situation, Wal-mart brings another social problem to the government, especially when the government is currently struggling with the budget shortage situation.
On the other hand, Wal-Mart’s major target consumers should be the lower or lower middle class, who may those people, which are facing lay off. And I believe that the upper class will never or ever visit Wal-mart because they refer to buy high quality premium products that Wal-mart can’t stand out.
Once consumers lose or decline their buying power and the government faces the double problems that Wal-mart may bring to, I wonder how Wal-mart is good for the America economy booming in this way. If yes, please give me a reason!
