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Analysis Of Wal-Mart: The High Cost

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In Robert Greenwald’s 2005 film, Walmart: The High Cost of Low Price, he along with other political activist opposes the rhetoric of Walmart’s CEO, Lee Scott, to the experiences of current Walmart employees, both in the United States and internationally; small town business owners, shoppers, and community activists. The film opens up previewing an audience of Walmart employees at a convention cheering on Lee Scott as he proudly states “It would be a pleasure for anybody to be the CEO of this company. . . . You get to say we had record sales, we had record earnings, we had record reinvestment back in our company” (Greenwald, 2005, 0:50). The statement gave the impression that he was going to praise the work of employees for their contribution …show more content…

In economic reality, millions of dollars in fines year after year has little impact on a multibillion dollar multinational corporation such as Walmart. Another economic reality of the Walmart business paradigm is higher poverty levels in towns with established Walmarts and a trend towards increased poverty following the openings of new Walmarts. According to George Miller’s research, “Wal-Mart’s success has meant downward pressure on wages and benefits … and threats to the standard of living in communities across the country” (Miller, 2004). Nearly all of the former and current employees interviewed for the film complained about salaries that are too low to adequately support a family, the lack affordable health care and the uncompensated hourly work. Thus, the problem is clearly Walmart’s manner of operation, in terms of employee dissatisfaction, strains on local and state welfare agencies, and closures or bankruptcies of small …show more content…

I feel the problems stemming from the Walmart business practices were explicitly outlined in the film with substantive interviews from those individuals closest to the source. While the research mentioned above by George Miller extends back to 2004, the rate of poverty and retail closures are still significant backed up by reports done by other researchers. Carlena Ficano’s, a researcher who completed an investigation on the impact that Walmart has on local economies, revealed a loss of four to fourteen retail businesses within fifteen months after a Walmart has moved into a community, whether rural or urban. Ficano’s study also confirmed Miller’s findings from nine years ago linking Walmart with “higher poverty rates” (Ficano, 2013). If such trends continue in communities throughout the United States, smaller businesses will cease to operate, retail wages will continue to decrease, and families will continue to live check to check trying to make ends

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