now that's a success story...

[ProblemAgain]

Wal-Mart's low wages cost taxpayers plenty

A new report says the retail giant's workers often need public aid. Such payments could total $1.7 million for a single Superstore.

By Aimee Picchi 13 hours ago

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Wal-Mart (WMT +1.14%) is a favorite of many consumers because of its low prices, but a new report claims those bargains have a dark side. 

Because of the chain's low wages, its workers are often pushed to accept public aid, including food stamps and subsidized housing, according to a report from congressional Democrats.

That means a single Wal-Mart Supercenter store in Wisconsin may require taxpayers to shell out as much as $1.7 million per year -- or nearly $6,000 per employee -- in aid, according to one estimate in the report. A second estimate pegged the cost to taxpayers at a lower $904,542 per Supercenter. The study examined Wal-Mart stores in Wisconsin because of the availability of Medicaid enrollment data for the fourth quarter of 2012.

"When low wages leave Wal-Mart workers unable to afford the necessities of life, taxpayers pick up the tab," the report notes. "Taxpayer-funded public benefit programs make up the difference between Wal-Mart's low wages and the costs of subsistence."

Wal-Mart defended its record by noting the company offers opportunities to its workers, spokeswoman Brooke Buchanan told The Huffington Post. She said 75% of Wal-Mart managers started as hourly employees. The company provides "a chance to move up in the ranks," she said.

It's not as if Wal-Mart doesn't have the resources to increase wages. The retailer, which employs about 1.4 million U.S. workers, earned $17 billion in profits last year. While the report notes it's not clear how much Wal-Mart pays its hourly workers, one research company pegs the average at $8.81. (That's above the federal minimum wage of $7.25 but below President Barack Obama's call for a $9 baseline wage.) 

At $8.81 per hour, the average Wal-Mart sales associate would gross about $18,300 per year, or well within the income range for a family of four to receive food stamps.

In Wisconsin, Wal-Mart was ranked as the employer with the most workers on the state's Medicaid program, the report notes. Even though 3,216 employees qualify for Medicaid, Wal-Mart is responsible for 9,207 enrollees because of children and adult dependents of those workers. 

Meanwhile, some Wal-Mart employees are participating in strikes around the country and leading a protest in caravans to the company's annual shareholder meeting on Friday, the Nation notes. 

One employee who plans to join the protest told The Huffington Post: "I’m not a screw-off employee by any means, and it's upsetting to me that I can't even support myself at 45 years old."

[exedir]

Cause and effect, and profit is the point.  

In order for Walmart to profit with its model of retail whatever costs that decrease the margin has to be reduced and clearly labor is one of those costs which it attempts to shift in its favor.  However, it also uses it's muscle as the 'biggest' retailer to cower both competitors and governments to get what is favorable to it's business and many governments have to make a deal as a matter of it's 'business' to find growth and have appeal to ancillary businesses that are found with Walmart, usually at the expense of local retailers that can't compete with Walmart as to location, accessibility and price and the potential for taxes from Walmart and those around it.  Walmart is practically a scorched earth phenomenon, if one is built in another municipality or area, those that don't have the Walmart in their jurisdiction can have their retail sites laid waste and closed.

As to labor, it is retail that is almost always at the lower wage scale.  With conversion of the American economy from making stuff to selling and shuffling stuff, the shift has been and continues to move to, no or little wage growth in the economy for the lower and lower middle classes in the last few decades as jobs have disappeared and lost with the decrease in manufacturing and industry and while there has been an increase in the service sector. 

[LoveLife&Laughter]

It's your taxes...

[ProblemAgain]

there was a study done a few years back that concluded that a walmart entering a geographical area has a net negative effect on the economy in that area. their employment of the local residents is offset by them driving other businesses out of business. and those other businesses are not the ones shipping the money off to arkansas. they are the ones keeping the economy churning locally. combine that with tax incentives that shortsighted politicos  give to entice wallyworld and you have an absolutely asinine situation of providing welfare to a trillion dollar corporation at the expense of the selfsupporting businesses and citizens

[Lifesighs]

It's F...ing nuts! You would think some research would be done by the cities and counties...