Wal Mart : The United States Of The Nation And The World's Largest Retailer

1628 WordsMay 20, 20167 Pages
“Wal-Mart is the largest private employer in the nation and the world’s largest retailer. With 1.6 million workers, 1.3 million in the United States and 300,000 offshore.” (Article #4.4 in reader). Thousands of Wal-Mart stores across the United States of America are best known for their slogan there of everyday low-prices guarantee. Wal-Mart retailers are regarded by the general American public for the place to go to find everything from fishing gear to groceries at the lowest prices. However, to obtain these low prices Wal-Mart must cut expenses, which it does across the board, including the pay and benefits to its workers in the United States. Wal- Mart 's low prices do often save the consumer money at the counter when they purchase…show more content…
Economically the savings to consumers may be higher than the loss of wages of the workforce it has consequences that superpass Wal - Mart 's profit margin. It puts workers in a desperate position that may in the long run cost as much to support. Wal-Mart consistently provides the bare minimum to its employees. In fact, the wages and benefits provided are not enough to live on reasonably given today 's economy and expenses. It has even been found that since Wal- Mart pays such low wages it actual puts more people below the poverty line and on welfare.“Because Wal-Mart jobs are low paying, and the hours worked are often less than 40 per week, these jobs do not help families transition out of poverty. The average wage for an ‘‘associate’’ in 2001 was $8.23 per hour, for an annual income of $13,861, which was below the federal poverty line for a family of three at that time” (Goetz and Swaminathan, 2006). With Wal -Mart 's wages, it puts their colossal workforce is a financial situation that makes even basic living expenses challenging. Employees working full time at Wal - Mart are not able to compete with raising cost of living. While people are not forced to work at Wal-Mart, it can create poverty in the greater community. Although low paying, there will always be someone willing to work at lower pay and few benefits. Additionally “a public policy issue arises if the chain creates externalities that raise
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