1 Wal-mart reduces prices by driving a hard bargain everywhere, but particularly on one of their biggest costs, wages. That makes some people better off (by a little bit) as they pay less for the things they buy.
2 It also pays badly and has horrible conditions – they should pay more to their employees and either charge higher prices (reducing item 1) or make lower profits – thereby benefiting fewer people at the expense of the many.
3 The government should have better benefits for those people who have horrible Wal-mart type jobs, so that there isn’t as much income inequality
It reminded me of the shock to my system I got when I was chatting to my New Zealand cousins about their cars. One of them had a Mazda MX5 (a car I have always admired – if I really cared about cars, I would probably have owned one by now). It had cost him, a couple of years old, about half as much as exactly the same car would have cost here in Australia. That’s because New Zealand opened up their second hand car market to imports about 10 years ago, and gets all of Japan’s cast offs (Japan also having right hand drive, like us, and having very strict road rules about old cars). And they have absolutely no tariffs on new cars either.
Of course, that means that they have no car industry, and the workers who used to make cars in New Zealand don’t have jobs. New Zealand doesn’t have much industry any more, so unskilled jobs aren’t exactly easy to come by.
So which is better? A few people not having jobs and being miserable, and the rest of the country having cheaper cars and a better standard of living? Or more jobs for unskilled workers at the expense of more expensive cars for everyone (and over a reasonable period, a car can be a major expense of a household budget, particularly for poorer people).
I don’t actually think there’s an easy answer, but I do think that most arguments you see (from either side) tend to ignore one side of the argument. Either they tend to ignore the costs to the rest of society from higher prices by tariffs and increased wage costs, or they tend to pretend that the human cost from unemployment and wages that aren’t really enough to live on isn’t really worth considering if there’s a profit to be made somewhere.