Maybe WalMart Should Destroy More Jobs


This article is interesting. If the stats below are true, I wonder how the Wal-Mart haters will respond.

Most of the value created by the company is actually pocketed by its customers in the form of lower prices. There is general agreement that Wal-Mart prices are significantly lower than its competitors. Assuming that the company's prices are 8 percent lower-at the low end of the estimates from various studies summarized in a recent report by Global Insight-and applying that to Wal-Mart's domestic sales volume, U.S. consumers save on the order of $18 billion per year. And because Wal-Mart forces its competitors to charge lower prices as well, this figure is a fraction of the company's real impact.

These kinds of savings to customers far exceed the costs that Wal-Mart allegedly imposes on society by securing subsidies, driving employees toward public welfare systems, creating urban sprawl, and destroying jobs in competing operations. Thus, juxtaposing these customer savings against the estimate cited by Fishman and others that Wal-Mart destroyed 2,500 jobs (on a net basis) in 2005 yields customer savings of more than $7 million per year for each job lost. (Fishman actually works with higher numbers for customer savings, so if he had done this calculation, he would have come out in the $12-$60 million range.)

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