Unemployment Rate and its Effect in Inflation

In "The Wal-Mart You Don't Know," Charles Fishman details the cost-slashing techniques utilized by Wal-Mart and how they affect the national economy. Fishman begins by saying, "The giant retailer's low costs often arrive having a high cost. Wal-Mart's relentless pressure can crush the firms it does organization with and force them to send jobs overseas. Are we shopping our way straight for the unemployment line?" (Fishman, 2003). Fishman continues by describing how Wal-Mart needs this sort of low prices from its suppliers that it forces them to supply ht at a loss; some of them go into bankruptcy following being Wal-Mart suppliers. As rigorous and unprofitable as Wal-Mart's tactics are for suppliers, however, they have modest selection but to accomplish all they can to attain the coveted position of as being a Wal-Mart supplier. Wal-Mart "does far more organization than Target, Sears, Kmart, J.C. Penney, Safeway, and Kroger combined" (Fishman, 2003).

The links of Wal-Mart's practices to unemployment and inflation are obvious. As Fishman's article explains, "People ask, 'How can it be bad for issues to come to the U.S. cheaply? How can it be unfavorable to acquire a bargain at Wal-Mart?' Sure, it is held inflation down, and it is great to acquire bargains," says Dobbins. "But you cannot buy anything if you happen to be not employed. We are shopping ourselves out of jobs" (Fishman, 2003).

sic's extended many years of building its name as being a pickle company that has earned the proper to charge higher prices. "The gallon jar of pickles at Wal-Mart became a devastating success, giving Vlasic powerful sales and growth numbers--but slashing its profits by millions of dollars." The end result was that "the fevered buying spree that resulted distorted each aspect of Vlasic's operations, from farm field to factory to financial statement" (Fishman, 2003). Wal-Mart is putting its suppliers out of business.

 

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