The closed circle of Wal Mart economics [View all]
Open a giant store that undercuts all the local businesses with cheap crap. The local stores and businesses soon go out of business. These former business owners and employees have no choice but to work for Wal Mart at very low wages and no benefits. The only place the Wal Mart workers can afford to buy anything is at Wal Mart. The employees end up giving a huge portion of their wages back to the store they work for because there are no other outlet stores to buy necessities and they can only afford Wal Mart prices. Wal Mart replaces most of the minimum wages they pay to their employees. Employees who in the process are forced to neglect their communities because they can't afford to repair their homes or replace their broken appliances. Wal Mart makes a profit which they then use to open more stores in other communities and countries.
That's a pretty sweet deal don't you think?
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