In one of the articles that I have inserted, it is about governments subsidizing

Question

In one of the articles that I have inserted, it is about governments subsidizing Wal-Mart through the transfer payments to their employees because of below poverty level wages.

Is Wal-Mart for the most part breaking any laws, are they operating in the free enterprise market driven economy? Isn't Wal-Mart just a "competitive firm" operating in a free enterprise based economic system.    In the 1930's and before wages were low and it was difficult to form unions. In 1935 the right of collective bargaining became law-union membership shot up and through the next decades (not now) the "middle class" was created and the standard of living increased by leaps and bounds. Today the "middle class" is about gone and wages have been stagnant for years. Can the present economic system create income equity? Please do your own research, I have inserted articles but don't just rely on me to direct your thinking-have a free and open mind.

The second article is a "socialism" periodical.

http://news.walmart.com/news-archive/2016/01/20/more-than-one-million-walmart-associates-receive-pay-increase-in-2016

http://www.socialismtoday.org/100/wal-mart.html

http://www.bloomberg.com/features/2015-walmart-union-surveillance/

Explanation / Answer

Yes, as you observed, according to watchdog groups report, $ 1B in government subsidies have aided walmarts expansion. Walmarts pay will be one of the largest single-day, private sector pay increase ever.

1.Yes, Walmart is breaking many laws, for instance.. walmart faced feudal lawsuit claiming discrimination against women in salary position, training and compensation according to the data in Exhibit 9, 2002. and alsoit was hiring labour immigrants illegally.

2. Walmart is in a market driven economy, which is in a oligopoly with few more famous competiotors like Kmart, Costco etc, but it works as a dominating monopoly.So,as to attain abnormal profits it will take everystep possible to reduce costs and bring prices very low every day. So Walmart is not replicable by other competitors. it uses cross docking, information technology, state of art communication system which guarantee Walmart steadily and readily decreasing sales and merchandise over the U.S market and even to global operations .

3.If firms like Walmart exist, there would be more of explotation and exhaustion of resources rather than income equity. it is the advantage of not just walmart but many corporates whose principle is to make huge profits.

4. The present economic system in countries like U.S. is insecure in terms of economic and ethical equity. A more comprehensive approach like a mixed economy which takes care of public and private sectors equally is needed, which will improve the living conditions as well as wages ultimately leading to a balance between economic growth and economic development.

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