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Has Wal-Mart single handedly affected the U.S. economy? Most definitely. As the largest retailer, and the largest employer outside the federal government, the Borg-like retailer has undoubtedly had an effect on our national economy. Have they, for example, had a negative impact on our trade deficit or per capita national income?

First, pause to take this in for just a minute. Wal-Mart is positively huge. It's annual sales are more than Target, Sears, Kmart, J.C. Penney, Safeway, and Kroger combined! In 2003, Wal-Mart sold more worldwide than IBM, HP, Dell, Microsoft, and Cisco Systems combined, by over $2 billion! Until this year's high fuel prices boosted the revenues of Exxon-Mobil, Wal-Mart had more revenues than any other company in the world, and had for three consecutive years. Almost 15% of our trade deficit with China can be attributed directly to Wal-Mart's purchases of Chinese made products. As a contrast, in 1995, Wal-Mart imported only about 6% of its merchandise from overseas. Wal-Mart, by itself, comprises about 3% of the U.S. GDP. You can bet they have the power to affect our economy!

Wal-Mart does have equal hiring practices, despite what you may have read. It hires both U.S. citizens and illegal immigrants. In 2003, the U.S. (then) INS raided 61 Wal-Mart stores in 21 states. They ended up arresting 250 illegal immigrant Wal-Mart employees, although, of the around 1 million people employed by the retail giant at the time, 250 is a very tiny percentage.

Number of Wal-Marts in the U.S.
2006 - 1,123 Wal-Mart stores, 2,142 Supercenters, 570 Sam’s Clubs, 108 Wal-Mart Neighborhood Markets

1995 - 1,995 Wal-Mart stores, 239 Supercenters, 433 Sam's Clubs, 0 Wal-Mart Neighborhood Markets

1985 – 859 Wal-Mart Stores, 0 Supercenters, 11 Sam's Clubs, 0 Wal-Mart Neighborhood Markets

Number of U.S. Wal-Mart Employees
2005 – 1.1 million

1995 – 600,000

1985 – 104,000

U.S. trade deficit with China (U.S. Dep't. of Commerce) -
All dollar figures in MILLIONS!
2005 $ -201,544.8

1995 $ -33,789.5

1985 $ 6.0

U.S. per Capita Personal Income (U.S. Dep't. of Commerce)-
2005 - $34,495

1995 - $23,076

1985 - $14,427

It can be convincingly argued that Wal-Mart has a significant effect on U.S. economic statistics as a whole. There is a direct correlation between the size of Wal-Mart and both the Chinese trade deficit and U.S. per capita income. It's analogous to how the mass of the land displacement that caused the 2004 tsunami was so massive, and in the direction of the earth's rotation, that it actually caused that rotation to slow, lengthening the earth's day.

Now, for the other side of the coin. Wal-Mart has a probably deserved reputation for cutthroat business and employment practices. No other retailer is resisted so fiercely by local citizens and businesses when they attempt to enter a new geographic market. But, for all the hubbub generated by the Butcher of Bentonville, no one seems to realize that, like many other addictions, if you live by them, you'll die by them.

People don't have to shop at Wal-Mart, yet so many do. If the American consumer didn't stampede through the doors to the tune of over 100 million a year, Wal-Mart wouldn't show up in every neighborhood. People choose to shop there, Wal-Mart continues opening Supercenters. It's pretty simple math.

Manufacturers don't have to sell to Wal-Mart, yet they trip over themselves lining up at Wal-Mart buyer's offices in Bentonville, hoping to land the Wal-mart account. Once companies get a taste of massive, Wal-mart generated sales, they have a hard time turning their back on them, even if they should. They're like a heroin addict. Wal-Mart, consequently, is in a position to demand all sorts of concessions, because the firms have now come to depend on the Wal-Mart sales. They make much higher sales figures, yet, in some cases, actually make lower profit, because their profit per unit is so eroded. A classic case of both blessing and curse. They're now in a position to be led around like a dog on a string. Companies need to weigh that before they sign on. In some cases, however, businesses have actually improved because of the demands of the giant. Efficiencies and operations must be improved, or the Wal-Mart suppliers simply can not keep up. This, then, helps the rest of their business.

Thousands complain about the way Wal-Mart treats its employees. The simple solution is: Don't Work There! No one demands you work at Wal-Mart. There is no federal or state statute that compels every citizen to serve 2 years of service at Wal-Mart (just wait 25 years). Potential employees flock to the retailer, despite its reputation for unfair treatment, and the number of lawsuits and governmental actions against it. They don't have to. If people weren't so eager to draw a paycheck from them, they wouldn't be able to pay such low wages or flaunt employment law as they do. Wal-Mart averages 12 applications for every job opening. People have personal choice and responsibility, although too often these days they would rather not avail themselves of it and just complain.