The issue
discussed through-out the CNBC article, "Wal-Mart: One More Reason The Fed Should Not Hike Rates," was the decline in Walmart profits according to a recent report, most likely due to competition between other bussineses. The
significance of this report was aimed towards the fact that the Federal Reserve
Bank should not be raising interest rates, as it hasn't in over nine years.
The report symbolizes a lack of economic growth in the nation but
specifically the middle class as well as a lack of growth with other nations. Since this report was released, the economy has not reached a better state, especially not the
portion associated with foreign trade. This thus pushes for more attention to
consumer sales and wages because of the lack of rise of sales.
Although the
profits in Walmart are a result of a variety of reasons such as retailer competition,
minimal inflation, and increase in worker training, the most imposing reason is
the unsatisfactory rate of unemployment. The Gross Domestic Product has not been altered as far as
records have shown, even though Walmart is the biggest retailer in sales.
In conclusion, The
Federal Reserve Bank has been considering raising interest rates, but a recent
record of sales from Walmart has alluded to there being no need for this.
Although Walmart has many factors reducing their income like employee training
costs and retailer competition, economic analyzers see the most significant one
being the lack in increase in wages for the middle class. The economic profit
margin has mostly been directed towards stock, which is mostly the upper class. Therefore, the nation needs to take steps to increase middle class wages. Walmart
itself, as well as other world-wide retailers, should consider maintaining their
sales within the borders since the only positive report from Walmart came from the US sales, and would thus make the economy in the United States stronger
due to the increase in jobs as well as sales.
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