Brendan
Forte
Extra
Credit
Is Wal-Mart Good for America?
Summary
In this documentary, Frontline talks
about the relationship between United States job losses and the average
American’s desire for low prices. They explore Wal-Mart’s way of doing business
and how it has changed the economy. There are many controversies about the
influences of Wal-Mart on the United States. Several questions are asked in
this documentary such as, “How are prices so low? How do they keep track of it
all? How do they know what to stock?” Frontline tries to answer these questions
so they can answer the most important question; “Is Wal-Mart good for America?”
Body
Wal-Mart is known for its main
focus, which is low-prices. Low prices make many people happy and it attracts
more costumers but the way they get these prices may be bad for America. Wal-Mart
has about 6,000 global suppliers, and about 80 percent of them are based in
China. A man named Gary Gereffi said, "China
is the largest exporter to the U.S. economy in virtually all consumer goods
categories. Wal-Mart is the leading retailer in the U.S. economy in virtually
all consumer goods categories. Wal-Mart and China are a joint venture."
Why China? Employees in China are willing to work for very low wages. They work
for a about a salary of only 50 cents and hour which adds up to about $100 a
month. This makes it possible to import products for a very cheap price, and
then sell for a cheap price while still making profit. Although purchasing
products for low prices is good, it also has negatives effects. It makes it
hard for workers to make a decent salary. This is why people debate if Wal-Mart
is good or bad for America.
Geography
This
documentary talks about Wal-Mart in America. The stores are in America but they
get a majority of their products from China. China is a big emerging market for
American exports. Twenty years ago, there were rice fields where all of the
factories in China are today. People flooded into China looking for work. Along
the highways there are factories ready to give people work. These factories
export billions of dollars of goods to America.
Demography
Chen Jen, South
China is sophisticated city of about 7 million people. This is a location where
many factories are located. Many young Chinese people flooded into the
industrial area that was no bigger than Missouri. There were about 40 million
migrant workers that came to these factories for work. The factories export
goods to Wal-Mart’s in America. The low prices affect a large population of
Americans, some being good affects and some bad.
Economics
Wal-Mart estimates that it imports
about $15 billion of Chinese products and maybe way more. They say that they
are growing in sales so that number can continue to increase. “Wal-Mart is
providing a gateway into the American economy for oversea suppliers in China
and elsewhere and there doing it on a scale that is unprecedented” says
Professor Gary Gereffi. In Long Beach, California, there is about $36 billion
dollars, worth of consumer goods imported. There is about $3 billion dollars
worth of raw materials exported. When that is added up, America makes about a
$120 billion trade deficit with China. We have a trade partnership with China
that benefits us because Americans have the incomes needed to buy Chinese
products but the Chinese do not have incomes to buy American products. A number
of jobs have been lost due to Chinese competition and in some places jobs are
created because of Chinese competition. The low prices help American consumers
save money on some products so they can buy more, which brings more business to
other places and creates more job opportunities. The problem with Wal-Mart in
America is that since it sells products for a cheap price, they do not pay
their employee’s a good salary. There are many pros and cons of Wal-Mart on the
American economy and this is a huge factor of controversy.
Culture
Wal-Mart affects many different
people such as blue-collar workers, and low to middle income families who are
struggling to make a decent living. It also affects Chinese factory workers who
struggle with unfair working conditions, long hours, and low wages. On the
positive side, owners of these factories and stores are making good money and
it can also help low to middle income class people because they can purchase
cheap products.
Conclusion
I have learned a lot from this documentary. There are many positive and negative effects of Wal-Mart on America and I now see where the controversy comes from. Some people may benefit from the cheap prices of the products but for the same reason, some struggle.
Bibliography
http://www.pbs.org/wgbh/pages/frontline/shows/walmart/view/
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