Thursday, November 6, 2014
Is Walmart Good or Bad for America?
In my opinion, Walmart is bad for America because their relationship with China has caused America to lose billions of dollars. Ever since Walmart has moved away from U.S. suppliers, they have decreased jobs in the U.S. by running businesses out and has created a bigger debt for America. Before Walmart moved overseas, U.S. businesses were supplying Walmart with their products. Due to Walmart's low prices, the products of the businesses flew off the shelves. This cause has resulted in an increase in jobs and profit for that business. However after Walmart moved to Chinese suppliers, businesses have lost jobs and have collapsed. It's the competition between U.S. and Chinese suppliers that makes businesses collapse because China sells these products or makes these products for a whole lot less than U.S. businesses do. In addition, Walmart has a big control over the volume of a business' products. If a business were to ask Walmart to raise the price of the product, Walmart would "discipline" them by decreasing the amount of volume of the product. Again, the aftermath of this would be fewer jobs and U.S. businesses collapsing. In addition to Walmart hurting the United States, Walmart has cost the U.S. billions of dollars of imports and only sending very little value of exports overseas. If a country imports more than they export, they're not making money at all and that is what Walmart is doing to the U.S. right now. Walmart is making taxpayers pay more because they're importing billions worth of imports and not enough exports to make a profit. For example, in Long Beach, California's port, they import 36 billion dollars worth of imports from China and only export 3 billion dollars worth of exports. In a port California alone has a trade deficit of 33 billions dollars. What about all the other ports in the U.S.? They must have similar number, which is not good for the U.S. economy. The unequal value of the exports and imports from China, that Walmart is causing, has made taxpayers pay more and add to the debt America already has. In addition, that trade deficit has increased dramatically according to the video. How much more will Walmart cost the U.S.?
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