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The Wal-Mart economy.(INSIDER REPORT)
The economic research firm Global Insight, in a study commissioned by Wal-Mart, concludes that the "rock-bottom" pricing approach used by the retail chain "has filtered into the U.S. economy and kept a lid on inflation," reported a November 4 wire service story. "The report also found that Wal-Mart's low pay for employees led to a 2.2 percent drop in overall wages across the economy but maintained that this was offset by falling consumer prices."
During the period 1985-2004, Wal-Mart's pricing strategy led to a 9.1 percent decline in food prices, a 4.2 percent decline in prices of other goods, and a 3.1 percent decline in over all consumer prices. "Consumers earned less in nominal dollars, but their income bought them more in the ...
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Source: HighBeam Research, The Wal-Mart economy.(INSIDER REPORT)