10 June 2014
Low Wage Assault: competition, wages, and employment
California is a beautiful calm state to live in, where you could do many exciting events. Yet, there seems to be an issue in this lovely state. Since California is not a pro-business state most businesses operate in a way to maximize profit. Retail corporations would rather move to another state, or start by negatively affecting their surroundings. The people in California could be blinded and say, “an issue in California? Where at?” I say the issue is how the retail corporations operate. California is often thought of as a state where people can live out the American Dream. They even have a concept of a California dream, but retail corporations are making that dream harder for the average Californian to attain. The following defines what a retail corporation is, “A retail corporation is the sale of goods to the public in relatively small quantities for use or consumption rather than for resale” (Oxford). The most competitive and stand out Retail Corporation is Walmart. Walmart stands out because of their amazingly low prices. Overall, behind Walmart’s prices it is a deviance retail corporation that affects its surroundings. The question is how does Walmart negatively affect its surroundings? Walmart harms its surroundings by putting small businesses out of business, by not giving a living wage, and by overworking employees.
The first affect Walmart has on its surroundings is their way of putting small businesses out of business. Since, Walmart is a huge retail corporation it tends to take the lead in small community businesses. It leads them by running their store down to non-existence. In a community without a Walmart, it is usually composed of your typical mom and dad owners to a small business, in where they sell similar products as a Walmart would. Yet, Walmart would seek every way possible to sneak into these communities. This becomes an issue, as Tucker Carlson stated, “There’s a problem: Wal-Mart is coming to town, and you know what that means. Sure enough, Wal-Mart arrives and the store goes under, along with the dreams of the Hunter family, which has nurtured the business, and the community, for so long” (Carlson) making a point that bringing a Walmart is bad to your community. Not only do the moms and pops stores close down even stores from individuals such as the Hunters family business close down. The Hunters just wanted to support their community by having their doors from their store open. Sadly, it is not just one or two small business but several of them. According to a landmark study by Loyola University, “the company's rhetoric didn't match reality: Within two years of Walmart's opening its doors, 82 local stores went out of business” (Barrison). Walmart lies to these communities, by stating that they would eventually create more jobs and that they will help them out financially. That is not the case, all they do is to eliminate stores as well as jobs. The objective is that they do create jobs but they are substitutes for the ones they eliminated. Walmart has the tendency to produce their products and sell them for a cheaper price. The poor small community business are not so big, therefore they do not have the capacity to do what Walmart does. What ends up happening is that they keep running their business as usually. What does Walmart do? Walmart starts running their business in a competitive way by lowering their prices. It is obvious that the small businesses are not able to do such a thing because their profit would vanish. Caitlin McDevitt, the writer of the article, “Is Wal-Mart Killing Your Business?” states that “You can't beat Wal-Mart on prices for what, what ends up happening is those retailers just ended up losing customers and revenue” (McDevitt). Walmart’s deviance kills of these small business, without even giving them a chance to compete. It is all Walmart’s fault that they opened up