Wal-Mart: A Study in Low Prices and Wages

Wal-Mart "unveiled a new weapon ... the most comprehensive study to date on the retailer's impact on the U.S. economy." The study, paid for by Wal-Mart and conducted by Global Insight, concluded the retailer saved the average American $2,329 and created 210,000 jobs in 2004. It also tied a 2.2 percent wage decrease to Wal-Mart, but claimed the "nominal" fall was offset by lower prices. The study didn't address employee benefits or working conditions. The study was one of 10 papers presented at a Washington DC conference, with "five of them at least somewhat critical of Wal-Mart's ruthlessly low-cost business model," reported the Wall Street Journal. Wal-Mart's Bob McAdam said that while "some conclusions might not be favorable ... if everything was one-sided, it would not be credible." Asked Tracy Sefl, of the activist group Wal-Mart Watch, "Will they act on any of the studies that show they have negative effects on a community?"