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.
——
Thank you for pointing this out. When you shop small locally-owned businesses, the money is often directly reinjected into local economies. The money you spend at locally businesses puts a girl through ballet lessons instead of putting dollars towards a new yacht. And the ballet company is owned by your neighbor.
If people really want to fight income inequality, stop giving your money to billionaires everywhere you can.