The Walmart Effect
www.theatlantic.com
New research suggests that the company makes the communities it operates in poorer—even taking into account its famous low prices.

Summary

Two studies reveal that Walmart’s entry into communities lowers household incomes by 6% over 10 years and increases poverty by 8%, even when accounting for cost savings.

Its practices, such as undercutting competitors, suppressing wages, and squeezing suppliers, harm local economies by reducing employment and forcing smaller businesses to close.

Walmart’s “monopsony power” enables it to pay lower wages and dominate suppliers, compounding these effects.

The findings challenge the idea that low prices alone benefit communities, emphasizing long-term economic harm.

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Non-paywall link

  • postmateDumbass@lemmy.world
    6·
    1 day ago

    Yes it is exactly how corporations work. That is the root cause of the problem.

    It should be no suprise that the corporations are sucking the country dry.

    The need is for an economic implementation that does not lead to death by parasite to most of the land.