Is Wal-Mart bad for America? Maybe

Is Wal-Mart the culprit of Recession in America? Not really

During the Econs lecture we saw a video of what is happening in America. Basically, firms are shutting down due to economic competition from foreign firms and Americans working in it are losing jobs. According to the video, Wal-Mart is accused of being the main culprit for inviting these foreign firms in dumping their goods in America.

However, before we justify Wal-Mart's actions of helping the chinese rather than fellow Americans, I think we should understand that it is not Wal-Mart's fault totally. In 2002, China entered WTO and before that, America is already working at a high economic perfomance. Thats the key, high salaries. Due to WTO, China is able to ship and dump millions of under-priced goods in America that forced local industries to be almost out of businees. Firms there no longer can afford the high wages to these workers. Another key to note is Globalization. The opening of the market to foreign firsm means that China allows foreign direct investments and firms in USA started looking for cheaper FOP countries such as China.

We must understand that it is because of China's low wage policy+WTO+Globalization that resulted in today's American situation. Wal-Mart, well we can say they are just a profit-driven firm like all others that are used by the Chinese.