Basic Economics & Twitter Fights

After last week’s twitter feud between Josh Hawley and Walmart, Scott Lincicome has decided to devote his weekly newsletter to this battle royal. Not so much the fight itself, but the allegations Hawley made against Walmart specifically the claims that they use “slave labor” and “for the pathetic wages you pay your workers as you drive mom and pop stores out of business.” (The Dispatch)

Furthermore, there is strong evidence that Walmart and other big box retailers are a net positive for workers and consumers. For example, a 2014 paper found that large retail chains like Walmart and Home Depot “pay considerably more than small mom-and-pop establishments,” and provide good opportunities for promotion into even-higher-paying managerial roles. As a result, “the growth in modern retail, characterized by larger chains of larger establishments with more levels of hierarchy, is raising wage rates relative to traditional mom-and-pop retail stores.”