U.S. and China Lose in Wal-Mart’s Global Economy

Wal-Mart’s history of importing cheap goods from China and other countries, where labor costs are low and safety and environmental regulations are lax has a detrimental effect on the citizens of both the U.S. and China.

Every year, thousands of jobs are lost in the U.S. as companies relocate to developing countries where labor costs are lower and worker protections are limited. By eliminating jobs, suppressing wages, and perpetuating poor working conditions, Wal-Mart weakens the supply chain and facilitates unstable product and labor economies. The products produced under such circumstances may be poorly regulated and put U.S. consumers at risk. When current suppliers reject Wal-Mart’s low-cost demands, Wal-Mart orders are often subcontracted to smaller, less accountable suppliers or worse, Wal-Mart simply moves more of its business to other developing countries and perpetuates the cycle of economic destruction.

In 2007, U.S. and Chinese consumers saw firsthand the effects of cutting corners on safety with massive recalls on toys, food and other products sold at Wal-Mart. Wal-Mart can tout its low prices, but those prices don’t begin to reflect the true costs to workers and consumers across the globe.

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