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

  • glimse@lemmy.world
    1381·
    2 days ago

    Hard to start a business when your competitor is Walmart.

    Hard to make a living when the main employer is Walmart.

    Hard to move when you don’t have any money.

    • kent_ehEnglish
      37·
      2 days ago

      Hard to start a business when your competitor is Walmart.

      It’s also hard to maintain an existing business when your competitor is WalMart.

      They can afford to undercut you until you go out of business, then they can charge whatever the market will bear.