In cities that are fluent, where consumer demands for products are already being met, Walmart presence downsizes the economy. According to an article What It Really Costs When Walmart Comes to Town, by Business News Daily, it reveals the financial devastation Walmart can have in a developed city. The problem stems from low wages Walmart pays to its employees. In average, they pay its employees at least 3 dollars per hour below compared to other employees in similar retail stores in the area, “[m]eaning that nearly $660,000 in wages is lost annually.” Over the span of 20 years, Walmart has the potential to cost the community $14 million in lost wages. In addition, it will also decrease the community’s economic output over the course of 20 years. In a fluent city, Walmart can undermine cities, as it has done so far, by not providing adequate pay to its employees. It has a ripple effect that will downsize the economic cash flow within the community.
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It stimulates the economy by providing additional jobs both directly and indirectly and increases sales taxes. According to a study Study Confirms that Walmart Supercenters Have Positive Economic Impact in California conducted by Walmart, it proves the positive stimulus Walmart has had in a rural city. The study compare cities in California that had a population just over 100,000 or below that had a Walmart to those that did not. The cities that did, such as Modesto, experience a growth of 48% in retail permits issued and an increase of 20% in tax revenue. Whereas compared to Vallejo, it experienced a growth of 20% in retail permits issued and a decrease of –12% in tax revenue. The study indicates that the presence of a Walmart in these communities supports business growth and more cash flow for both the community and the
It stimulates the economy by providing additional jobs both directly and indirectly and increases sales taxes. According to a study Study Confirms that Walmart Supercenters Have Positive Economic Impact in California conducted by Walmart, it proves the positive stimulus Walmart has had in a rural city. The study compare cities in California that had a population just over 100,000 or below that had a Walmart to those that did not. The cities that did, such as Modesto, experience a growth of 48% in retail permits issued and an increase of 20% in tax revenue. Whereas compared to Vallejo, it experienced a growth of 20% in retail permits issued and a decrease of –12% in tax revenue. The study indicates that the presence of a Walmart in these communities supports business growth and more cash flow for both the community and the