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.

——

Non-paywall link

    • theneverfox@pawb.social
      link
      fedilink
      English
      arrow-up
      3
      ·
      11 hours ago

      You’re missing the meat. High prices, low prices - local business spends more locally. Their house, their meals, ideally even production (although largely it probably goes to the same place)

      With Walmart, the manufacturing costs go to China. The minimum wage workers stay more local. The profits go to HQ. What goes to HQ leaves the area permanently, giving nothing back

    • iAvicenna@lemmy.world
      link
      fedilink
      arrow-up
      36
      ·
      2 days ago
      • lower prices until other small businesses close down
      • increase the price back
      • everyone needs to buy from you because you are the only supplier
      • profit