The Walmart Effect | New research suggests that the company makes the communities it operates in poorer—even taking into account its famous low prices
The Walmart Effect | New research suggests that the company makes the communities it operates in poorer—even taking into account its famous low prices
New research suggests that the company makes the communities it operates in poorer—even taking into account its famous low prices.
Summary
Two studies reveal that Walmart’s entry into communities lowers household incomes by 6% over 10 years and increases poverty by 8%, even when accounting for cost savings.
Its practices, such as undercutting competitors, suppressing wages, and squeezing suppliers, harm local economies by reducing employment and forcing smaller businesses to close.
Walmart’s “monopsony power” enables it to pay lower wages and dominate suppliers, compounding these effects.
The findings challenge the idea that low prices alone benefit communities, emphasizing long-term economic harm.
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I thoroughly enjoyed this article. It was full of cited information and even the sources led to interesting reads.