This article, discusses a study that was conducted from 1985-2003 in 89 counties across the country to determine the effect Wal-Mart had on certain regions. The study tested personal income, overall employment, and retail employment. The study showed in all three categories Wal-Mart had a significant positive economic impact for those regions. Many people previously believed that Wal-Mart wiped out jobs and lowered wages, this study in-turn proved to be the exact opposite, in fact when Wal-Mart’s open up many businesses flock to the areas surrounding the store because of the traffic and exposure it brings in, two thirds of major retailers locate themselves within a five mile radius of a Wal-Mart store. As far as critics complaints of low wages, the U.S Department of Labor Statistics show that Wal-Mart is just slightly under the retail industry average. Wal-Mart’s low cost strategy allows lower income families to enjoy flat screen televisions, expensive computers, and other electronics and household items and a much more affordable price than a even the distributer cannot match. Wal-Mart accounts for 6% of all food and retail sales for the country and 90% of all Americans live within 15 miles of a Wal-Mart store. With all of their critics complaining about how Wal-Mart is bad for the economy; Wal-Mart was able to show strong firm growth as well as higher total earnings throughout the recession, the lower prices and multiple choices drove in customers who were looking for bargains and to save money. Although many will still debate the economic value Wal-Mart has for the economy, this study shows that the good effects highly weigh out the bad.
http://www.msnbc.msn.com/id/22719054/ns/business-forbescom
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