Walmart's Negative Impact On The Economy

Begin to imagine a country’s population, made up of an indigent mass majority and the seldom remaining elite. Imagine, this country which is composed by two completely opposite side of the economic scale, the availing majority and unprecedented minority. With a society that has two polar opposite social classes corruption and greed form. From this corruption and greed turmoil begins, many of the elite begin to only care about their success, with no regard to the families struggling through poverty. The poor turn against the rich, and the rich do the same to the poor. There is a country with such economic inequality that is close to home, our neighbors to the south of us. The majority of Mexico’s citizens are struck by extreme stratification …show more content…
They have created jobs for people and now employ more than any other company in the U.S. Their median wage is only $8.81 according to an article published in 2012 by former Secretary of Labor under the Clinton Administration, Robert Reich (Why You Shouldn’t Shop at Walmart on Friday, para. 2) Overall, Walmart has a negative impact on our economy due to the pay cuts that many individuals were forced to take to work at Walmart and other corporation like them after being laid off of work. When comparing General Motors when they were America’s employment powerhouse compared to Walmart today, Reich had this to share, “A half century ago America’s largest private-sector employer was General Motors, whose full-time workers earned an average hourly wage of around $50, in today’s dollars, including health and pension benefits”. The $50 wage is inflation adjusted and shows that corporations can pay an employee whatever they feel necessary, which in most cases is a minimal wage. Walmart and other corporations are not only depriving the working and middle classes with just their minuscule …show more content…
Lenders, investment companies, insurance companies, and rating agencies devised a plan that allowed the lenders to lend money to almost anyone with credit. This is not the bad part though, the plan virtually left none of these companies liable if the mortgage went bad and became foreclosed. They actually made more money if the mortgage did go bad, this was done by betting against the home owner, or for a better word, borrower. This led to the humongous price tags on homes, and the record foreclosures that we are facing still. This impacted middle class family’s greatly, in one of the most negative ways that one could