Is Walmart Destroying America? (2024)

(This article appears in the November/December 2014 issue of The American Postal Worker magazine.)

Is Walmart ruining our country? That’s a question that most people never stop and ask. Most of us love shopping in big, clean stores that are packed with cheap merchandise, but the truth is that Walmart is destroying America in a lot of ways.

Walmart has destroyed tens of thousands of small businesses and countless manufacturing jobs over the past few decades. It has become a gigantic operation that sells five times more stuff than any other retailer in the United States. Unfortunately, a large percentage of the things sold at Walmart are made overseas. What that’s costing the U.S. economy in lost jobs and revenue is incalculable.

‘Bait and Switch’

For every supercenter built, at least two supermarkets and numerous other stores go out of business. Walmart uses the bait-and-switch tactic. It opens stores with rolled back prices, but once the other stores close, Walmart raises its prices, often higher than the prices of stores that it ran out of business.

Walmart’s low-wage workers cost U.S. taxpayers an estimated $6.2 billion in public assistance, including food stamps, Medicaid, and subsidized housing, according to a report published by the Americans for Tax Fairness, a coalition of 400 national- and state-level groups.

The estimate was made using data from a 2013 study by the U.S. Committee on Education and the Workforce, which found that a single Walmart supercenter cost taxpayers between $904,542 and $1.75 million per year, or between $3,015 and $5,815 on average for each Walmart employee. That’s because hundreds of thousands of full-time Walmart workers live below the poverty line and are forced to get state aid.

Walmart’s Anti-Union Tactics

Walmart has a long history of denying its employees the right to organize and the right to bargain collectively.

The company deploys numerous anti-union tactics, including requiring workers to attend anti-union “captive-audience” meetings and training supervisors in “union avoidance.”

Employees are discriminated against and even fired if they are known to favor organizing a union. Lawsuits have been filed against Walmart on issues such as: low wages, poor working conditions, racial and gender discrimination, excessive hours, and sexual harassment. Many Walmart workers are forced to work flexible schedules with shorter shifts, making it difficult to schedule their lives.

Approximately 70 percent of Walmart employees leave the job within the first year.

Don’t Shop at Walmart

Walmart has been criticized by labor unions, community groups, grass-roots organizations, religious organizations, environmental groups, and Walmart employees, with good reason.

As of July 2014, the company’s largest shareholders, the Walton family, are worth a combined total of $152 billion. The family’s wealth now exceeds the wealth of the bottom 40 percent of American families combined, according to an analysis by the Economic Policy Institute. Yet Walmart’s employees are among the lowest paid workers in the U.S., making an average of $8.81 per hour.

It’s time to expose Walmart for what it really is – a greedy corporation!

All over the country, independent retailers are going out of business because they cannot compete with Walmart. Often communities will give the company huge tax breaks just to move in to their areas. But what many communities don’t take into account is that the introduction of a Walmart is often absolutely devastating to small businesses and to the economy.

The best way to counter Walmart’s effect on the American economy is to stop buying their products. The more that consumers buy these good, the more the retailers will bring them in from countries that exploit cheap labor. When these retailers see their sales drop, then and only then, will they start to change their ways!

Is Walmart Destroying America? (2024)

FAQs

Is Walmart a good thing for America Why or why not? ›

Shoppers make such big savings that economists credit Wal-Mart with driving down America's inflation rate. This strategy of “Always Low Prices. Always” continues to surprise even Wal-Mart with its success.

Is Walmart hurting the economy? ›

The presence of a Walmart store can hurt the business of smaller companies and lower wages for local workers. Much of the Walmart Effect can be attributed to Walmart's immense buying power. The Walmart Effect can also affect suppliers, who must drive their production costs down in order to afford to sell to Walmart.

Is Walmart in financial trouble? ›

Key Points. Walmart has some $3.5 billion in debt that is due in the coming year. Profits have grown, helped by a successful expansion into e-commerce. The retailer's business model is generally considered recession-proof.

Is Walmart good for America documentary summary? ›

The documentary investigates the idea that Walmart may help millions of American customers get great deals every week by importing from China; still, they are also why there was a tremendous overseas shift to China to produce American consumer goods. This had resulted in hundreds of thousands of job losses.

Why are Walmart closing in usa? ›

Walmart closing more stores

The retailer has already closed 11 stores across the United States in 2024 due to a variety of issues, including underperformance. It also made the decision to close its 51 health clinic locations and sunset its entire health division.

Why is Walmart changing their name? ›

The company, which became the largest retailer in the world with a huge chain of stores, is changing its name to reflect its increasing emphasis on e-commerce. As of Feb. 1, it will no longer be "Wal-Mart Stores" and will get rid of the hyphen and drop "stores" from its legal name.

Why is Walmart losing so much money? ›

One piece of crucial information in Walmart's statement is that the stores' annual losses doubled over the last 5 years. What has happened over the past five years? The outbreak of covid and the resulting global pandemic, which scared off people from visiting stores.

Who gains the most from Walmart's price policy? ›

a. The people that gain the most from Walmart's price policies are the shareholders and the executives. This is because they gain the most if the sales are high and the higher the sales, the higher that management gets paid.

What percent of the US economy is Walmart? ›

The company last year made $514.4 billion in revenue. That's half a trillion dollars and change, about 2.4% of the entire U.S. GDP.

Is Walmart going bankruptcies in 2024? ›

Six Walmart stores have closed so far in 2024, according to reports – including a pair of stores in California and one in Maryland. One Walmart location closed in Ohio and another pair of stores closed in San Diego that the company said did not meet financial performance expectations.

What is Walmart in trouble for now? ›

The EEOC charged that Walmart violated the Americans with Disabilities Act (ADA) when it revoked permission from an employee with a disability to use a store electric cart as a reasonable accommodation for a disability, forcing him to take unpaid leave.

Which of the following is the biggest criticism for Walmart? ›

One common complaint centers around the treatment of its employees . Critics argue that Walmart 's low wages , limited benefits , and lack of unionization contribute to poverty-level living for many of its workers .

What is Walmart trying to accomplish? ›

We're working to become a regenerative company that aims to make a positive difference for people and the planet. We operate approximately 10,500 stores and clubs in 19 countries and numerous eCommerce websites.

What is the secret of Walmart success? ›

The scale of the business forms the foundation for its success by maintaining cost leadership. Slowly though, the company has looked for adjacencies, new opportunities that complement this value proposition. The result is that Walmart has added “convenience” to “everyday low prices”.

Is Walmart good or bad? ›

While Wal-Mart has lately been accused of exploiting its employees, it is also being scrutinized by many for controlling the retail market. Wal-Mart's control over retailers can be seen by looking into how it forces retailers into selling to Wal-Mart at rock bottom prices.

How is Walmart good for society? ›

Walmart has a long history of stepping up in times of disaster to help communities with relief and recovery. Since 2016, Walmart, Sam's Club and the Walmart Foundation have provided more than $132 million for disaster preparedness, response and relief efforts supporting communities around the globe.

What good things has Walmart done? ›

We're proud to be a part of thousands of communities worldwide and support them, whether that's through local giving and associate volunteering, providing emergency relief when disasters strike, providing access to healthy food and services or relieving hunger through food donations and our philanthropic work to ...

Why is Walmart so important? ›

Walmart helps people save money and live better. Walmart International delivers on this promise by bringing value and convenience to millions of customers in 18 countries outside the U.S.

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