Large Corporations

1272 words 6 pages
JANUARY 7, 2013

Large corporations such as Wal-Mart or Home Depot often come under criticism for putting mom-and-pop shops out of business. While this may be a valid criticism, the consumers neglect to realize that they play the biggest part in shutting these businesses down. Consumers across the country are always looking for the best deals or the lowest prices, and in most cases the larger corporations are where products can be found at the lowest price. Many small business owners and the populations of small towns dislike large corporations moving into the area because they believe it negatively effects the local
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On the topic of jobs, there is a general increase in the availability of jobs after a large corporation moves in. Going back to the Wal-Mart example, a study was conducted to show how Wal-Mart affected job creation. In a study conducted by University of Missouri-Columbia professor Emek Basker, Wal-Mart creates a net value of 50 jobs more than it “destroys.” In her study, she presents these findings:
“I find that immediately after entry, retail employment in the county increases by approximately 100 jobs; this figure declines by half over the next five years as some small and medium-sized retail establishments close. Wholesale employment declines by approximately 20 jobs over five years. Restaurant employment increases slightly; there is no change in employment in manufacturing or in automobile dealerships and service stations.” (Basker, 2005) In addition to the new jobs that are created, most Wal-Mart employees can enroll in health benefit programs, whether part time or full time workers. This means that smaller communities where health insurance options may have been limited will now have jobs where health insurance is a benefit. Also the low income families who can not afford pricey health insurance have the opportunity to receive benefits. Another benefit of having a Wal-Mart move into a community is the money it brings into


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