Economics

According to the article on news review website Wal-Mart made $312.4 billion sales for the fiscal year ending January 31, 2006. Wal-Mart annual sales are more than the combined GDP of the bottom 80countries on the list. Wal-Mart was founded by Sam Walton in 1962 and was first incorporated in 1969. Wal-Mart is the largest retailer in the world and the second largest corporation in the world. According to the Wikepedia website Wal-Mart reported net income of $11.2 billion on $316 billion of sales revenue. It is the largest private employer in the United States and Mexico. In this paper I will show how Wal-Mart affects the GDP from the Keynesian view of economics

According to the Wikepedia website fiscal policy is the economics term which describes the actions of a government in setting the level of public expenditure and how that expenditure is funded. Fiscal policy is the means by which a government adjusts its levels of spending in order to monitor and influence a nation's economy. The gross domestic products (GDP) are the primary indicator used to gauge the health of a country's economy. GDP represents the total dollar value of all goods and services produced over a period. It measures output generated through production by labor and property, which is physically located within the confines of a country. The founder of Keynesian economic theory was John Maynard Keynes. Keynesian economics states that the government can influence macroeconomic productivity levels by increasing or decreasing tax levels and public spending. As the aggregate demand increases the price level falls, influencing people to buy more at lower prices and an increase in the number of goods and services demanded.

The impact of fiscal policy on GDP from the standpoint of Keynesian economics is that GDP is a Keynesian concept that measures only the output of final goods and services and excludes intermediate production. If in a fiscal year total goods and services produce in a year is higher, then the GDP value will be higher. If the gross domestic product production is higher it means that the consumer are buying more. The government can help increase the GDP value by lowering the taxes, which will help increase the consumer spending. The consumer will also spend more when the prices are lower and this will help increase our nation GDP.

Wal-Mart continues to be the largest retailer in the world today. Their low cost strategy allowed them to consistently beat their competitors and has contributed to their success. According to the News review website Wal-Mart experienced a 9. % Increase in net sales in their 2006 fiscal year with net sales totaling to $312.4 billion and net income rose 9.4% to $11.2 billion. They generated $8.5 billion in sales tax revenue for the communities in which they operate. Wal-Mart sales help in increasing the GDP value through keeping their prices low and consumer spending