Wal-Mart Imports from China Cost 200,000 U.S. Jobs

Wal-Mart's "falling prices" are far more costly to the American economy than its shoppers know – or perhaps want to know: Its deals with manufacturers in China cost 200,000 American jobs between 2001 and 2006.

In its weekly snapshot, the Economic Policy Institute looks at the massive U.S. trade deficit with China and finds that Wal-Mart was responsible for $27 billion of it just last year. The total U.S. trade deficit with China reached $235 billion in 2006.

"On average, 77 U.S. jobs were eliminated for each one of Wal-Mart's 4,022 U.S. stores in 2006," EPI said, noting that manufacturing workers have been hardest hit, losing more than two-thirds of the 200,000 jobs affected over the last five years.

"Wal-Mart's huge reliance on Chinese imports illustrates that many powerful economic actors in the United States benefit from China's policy of maintaining an undervalued yuan, its abuse of labor rights, and other fair-trade norms," EPI said. "Wal-Mart's benefit, however, is not the country's gain, as these policies have contributed directly to the ever-growing trade deficit that imperils future economic growth."

The full snapshot and link to a longer report are available at www.epinet.org.