Is Walmart Good for America?

After watching the Frontline video on Walmart, I would have to say that the video itself was definitely biased on the question. I think that the video was obviously anti-Walmart and tried to convince viewers that Walmart is bad for America. That being said, I do agree with most of the video's portrayal of opinions, in that I think that Walmart is definitely good for China but bad for America. I think that Walmart is good for those people whose jobs and incomes are not affected by Walmart, but that Walmart's influence is increasing, and that more and more people are being affected.

The low cost of products is good for the American people, but the low wages for Walmart employees and the decrease in available jobs that is a product of Walmart's policy are not good at all. The decrease in income for these people creates a cycle where they are almost forced to shop at Walmart because of the low prices, but then they are supporting the very force that has caused them to be in a low income situation. I don't know if this is something that Walmart does on purpose or not. It reminds me, in a way, of the Fordism policy of raising wages so that people can afford to purchase the products that they are producing. However, it is backwards, because low wages force people to shop at Walmart in order to save money.

I think that part of the influence that Walmart has had is increasing consumerism in America. Many Americans cannot afford the lifestyles to which they have become accustomed, and credit card debt, along with other debt, is a huge problem. Walmart makes some of this consumerism possible for people, and keeps people expecting to be able to make purchases and have things that they do not necessarily want.

The U.S. trade deficit with China is disturbing. The U.S. is being forced into the role of a periphery country in its relationship with China, who is more like a core country in the relationship. The U.S. is exporting raw materials to China and importing finished products from China. We are becoming more and more dependent on China for cheap products that we cannot compete with.

I disagree with the viewpoint of the economist on the video who said that Walmart allows consumers to spend more money in other parts of the economy because they spend less at Walmart and then have extra money to spend elsewhere. I think that the more that people shop at Walmart, the more dependent they become on Walmart for the prices that they find there and realize that they are unable to afford to shop elsewhere. This is what capitalism is all about, finding the best price and having manufacturers compete for consumers' money, but when there are unfair practices going on in other countries like China that don't allow the U.S. to compete, such as unsafe working conditions, Chinese government subsidies, etc. capitalism cannot overcome like it should in theory.