In the beginning, Walmart was a merchandizing enterprise which took advantage of the fact that the mark-up on products was typically 100% of the wholesale price. Moreover, other large merchandizers, such as Sears Roebuck and J.C. Penny and Montgomery Ward had accustomed manufacturers to being paid when orders were delivered and sold, rather than when they were placed. American manufacturing was squeezed and that promoted moving production, first to the lower wage southern states and then overseas, where any wage was seen as an improvement over a hand-to-mouth existence.
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