The company I work for is in manufacturing and Wal Mart basically told us to offer our products to them at below our manufactuing costs in the U.S. SInce we supplied between 40 to 50% of the product type sold by Wal Mart, we had no choice. The net result was 2000 employees laid off, and production shipped to Mexico. When the labor savings from Mexico weren't enough, we laid off Mexicans and closed plants there and shipped production overseas to Asia. The production wages we do have in the U.S. (for less manually intensive tasks) have been dropped from $10/hr to $7/hr and the plants are located in regions where most jobs were union and paid up to $20 per hour. I say were union because most of those plants in those areas have been closed, too. We are now the dominant employer in those areas. Now Wal Mart is the only place our employees can afford to do their shopping.
Please do not say I have no evidence when I am an eye witness to the economic changes Wal Mart has produced. Like other posters have mentioned, is it good for America when the economy becomes service based rather than manufactuing based? Look at WWII when American production was the backbone behind the solid muscle of American military strength. If such a war happened today, are we to barcode scan the enemy to death?