Walmart Destroying The Local Economy Research Paper

Why are our local economies declining? Walmarts are taking money and jobs form

almost every county in America. Some people believe that Walmarts create more jobs and revenue, but they are actually doing the opposite. Many studies reveal that Walmsrts are destroying our local economies in more way that one.

Walmart's have been raising their prices as more competition falls around them; their high prices are effecting more than just the people's grocery budget. The Foundation for Economic Education says, "the absence of rigorous competition (for Walmart) leads to high prices in our communities" making people pay more for their groceries and other necessities (Semmens). Walmarts are getting rid of the customers for local businesses by promising their low prices. The local businesses then close down leading to the rise of Walmart's prices; if there is no competition for them then they can raise their prices as high as they want. The Journalist Resource tells us " a Walmart store actually increases housing

prices by 2 to 3 percent for all houses located within a mile of a Walmart" making people pay for for their housing too (Kille and Ordway). Walmarts are not only taking money from our grocery budget but form our housing budget too. Walmarts raising our housing prices only hurts our local economies. The raiding of product and housing prices because of Walmarts is effecting the people of the
community greatly.
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Walmart's are killing almost every local business it comes close to, wiping out our local
economy.

The Journalist Resource also tells us that, "the probability of going out of business was significantly higher for establishments closer to a Walmart" making us believe that Walmarts are the reason for our local businesses to leave (Kille and Ordway). Walmarts our liking our local businesses, making it so hard for local business owners to keep their jobs. Most local business owners are loosing their jobs, money, and careers because of the Walmarts coming to our local counties. Kille and Ordway say that "on average, within 15 months of a new Walmart opening as many as 14 local businesses close" causing us to believe that Walmarts are the reason for the decline of businesses (Kille and Ordway). Walmarts coming to our counties is completely destroying our local economies. Eventually, the collapse of our local economies is inevitable. Our local economy is being destroyed by the big box Walmarts coming to our towns and counties, closing all our local

businesses.
Walmart is taking all the money out of local economies by taking the money we spend in the store and spending it elsewhere. The Institute for America's Future tells us that, " Walmarts siphoning of means a loss of 5.7 billion in wages and benefits paid, 3.4 billion in lost purchases, 487 million in lost tax revenue, and 181.2 million in lost contributions to charity" leading us to believe Walmarts are stealing everyone's money ("the six"). Walmarts are draining money out of economies causing poverty rates to rise. Our local economies are getting weaker and weaker because of all the money Walmarts are taking out of it. Bill De Blasio says "Chain stores like Walmart send most of their revenues out of the community, while local businesses keep most of

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their money in the local economy: for every 100 dollars spent in a locally owned business, 68 of those dollars stayed in the community while chain stores only left 43 dollars to recirculate locally" letting us know how much money Walmart is sending out of the community (De Blasio). Walmarts are weakening every aspect of our economies. All the money leaving our communities are causing poverty rates to incline all across the country. Since Walmarts are taking all the money out of our local economies, there is less money recirculating causing poverty rates to rise.
The openings of new Walmarts are exterminating many of our local retail jobs, also causing unemployment rates to rise. De Blasio also says "Walmart store openings kills 3 local jobs for every 2 they create by reducing retail employment by an average of 2.7 percent in every county they enter" which means Walmarts are killing all the jobs (De Blasio). Walmarts are entering our counties and raising our unemployment rates. Our local retail jobs are being exterminated by even the thought of a new Walmart coming to town. The Walmsrt One Percent says that, "Walmarts cost America an estimated 196,000 jobs" with those numbers nobody wants a Walmart coming to town ("The six"). Walmarts coming to town is not just affecting local jobs but Americas jobs as a whole. Not only are our county unemployment rates rising but our national rates are rising too. Employment rates are steadily declining as Walmarts are being built and destroying more jobs than they are creating.
Walmart's are effecting everyone in the community by the low wages they pay their workers. Studies that Walmart one Percent conducted reveals that "Walmart workers earned an estimated 12.4 percent less than retail workers as a whole" and all these low wages are killing our community ("The six"). The low wages that the workers earn translate back into the downfall
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of the local economies. If the workers are earning less, they are spending less money in out local businesses. Business News Daily tells us, "Studies show that communities will be much worse off with Walmarts, with lower wages and less money in the community" making our local economies slowly go downhill (). Walmarts seem like they are pocketing most of the money they earn by paying the workers less. The less money we have in the community the weaker our economies are getting. The low wages that Walmarts are paying their workers is causing there to be less money recirculating in our local economies.
Walmart's are also destroying our local economies by their product imports and their spending money out of our local economies. The draining of money from our local economies is caused by "Walmarts- they buy products from outside the U.S. and the profits are taken back outside the local economy" (Boatwright). Walmart's imports are hurting the economy more than its helping their products. The profits that Walmart is making is not being spent there (in the local economy), killing the local businesses. "Owning my own business close to a Walmart has helped me to understand the effects that they [Walmarts] have on the local economy" the Walmarts are having negative effects on local business owners too (Boatwright). Although Walmart does create some revenue, it does not compensate for all that it kills. Walmart's money spending and import habits are only hurting the U.S. as a whole and our local economies.
Walmart's are not helping the local economy in any way. They do more harm than good. For Walmarts to improve, they would have to start recirculating money into the local economy. If no one addresses the economy declining because of Walmarts, then many Walmart counties economies will collapse. They are doing more harm than good in almost every county in
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America.