Walmart's Low Prices And Big Profits Have A High Cost

[+Malamute]

 

 

It's pretty common knowledge that Walmart's low prices and high profits come with high costs for workers. They also come with high costs for taxpayers, though, as Walmart workers are forced to turn to government assistance for health care, food, and more. A new report from the Democrats on the House Committee on Education and the Workforce makes clear just how much, and the numbers are staggering. The report:
 

[E]stimates that a single 300-person Wal-Mart Supercenter store in Wisconsin likely costs taxpayers at least $904,542 per year and could cost taxpayers up to $1,744,590 per year—about $5,815 per employee.

 

Those numbers come from an analysis of Wisconsin Medicaid data and the low-end estimate is based on the actual number of Walmart workers using Medicaid—far more are eligible—and assumes that the same number of workers also receive other forms of government assistance like reduced-price school breakfasts and lunches, housing or heating assistance, or the Earned Income Tax Credit. Walmart is the employer with the highest number of workers on Medicaid in Wisconsin, at 3,216, which climbs to 9,201 when their children and adult dependents are factored in.

So when you're thinking about how much things cost at Walmart, remember that the low prices inside the store are possible because taxpayers and the government are subsidizing Walmart's low pay.

[+washtenaut]

I understand wanting the shock effect but if one thinks about this a bit, ALL taxpayers pay to subsidize but only the people that actually shop at Wal-Mart would see any benefit from spending those tax dollars. 

 

Probably not the conclusion the report writers were aiming for.

[greenbuddha]

Sounds like the situation of about every 3rd worker in America.

 

Same old problem though: how much should  the government support a worker and who should pay for it.

 

America is looking at some of the same economic transitional problems that other countries have had to deal with over the years: falling abilities to 'produce' and the problem of caring for citizens using a limited supply of money to do it with (taxes).

 

Most Americans have gotten used to a high prosperity level, a situation that is rapidly changing, and the loss of that is going to be very hard for most of us to deal with.

 

But economic changes are coming, and our governmentt and 'big business' are going to have to make some 'major' changes along the way.

 

Just a matter of time... and that 'time' is rapidly approaching.

 

MTCW.

[CaveatLector]

If these workers didn't have a job how much would it THEN cost taxpayers?

[t-pain]

henry ford made the middle class, but wal-mart is making the poor-class larger every year.

its funny you talk about jobs. if walmart didnt come in, the old grocery store would still be there AND it would be paying a higher wage + benefits to its employees.

 

 

walmart prices arent that low anyways. same prices as everywhere else.

just no one bothers to do the math.

[CaveatLector]

That's funny.  Family owned grocery stores paid well AND gave benefits?  What grocery was this?

[Northern Lab]

Thought this chart might be relevant to the discussion.

 

[CaveatLector]

I have never worked at walmart so I don't know the ins and outs but it appears they do offer health benefits, a 401k, etc.

http://careers.walmart.com/company-benefits/

[Northern Lab]

This also:

 

[CaveatLector]

The graph at this link tells more of the story.  Adjusted for inflation, the minimum wage is currently somewhere in the middle of the historical high and low points.  Just showing a graph that depicts the downward trend since a certain date fails to show the whole story. 

http://economy.money.cnn.com/2013/02/14/minimum-wage-history/

[CaveatLector]

Productivity levels (a measure of the rate of production in manufacturing jobs) isn't really all that relevant regarding minimum wage OR non-manufacturing jobs.  I think it is safe to say that most productions jobs are not minimum wage jobs.

This also:

[phaquetoo]

What does this mean? does this mean that kids 10 and under are making the clothes and tennis shoes we wear? when apple and H.P and all of the computer companys send their bad towers back to china to get the good parts back out of them, do they use kids to flick their bic and sniff it to see what plastic bin it goes into??(all of the plastice has a carcinagentic in it)

 

We can build machines to do that, and pay a person to make sure it works, we dont need to kill off a generation so they can make the clothes and everything people use across the world!  Lets raise the tarriffs on china to what we have to pay to ship their, and lets tax them like they tax us, they wont want the work any longer and we will do the work and be the real super power of the world, kidna funny that the greatest country on this planet sends every thing to pay off china!  we are either gonna have to pay them or blow them up!

 

Peace

Jim

 

p.s what was this thread about?

[greenbuddha]

What does this mean? does this mean that kids 10 and under are making the clothes and tennis shoes we wear? when apple and H.P and all of the computer companys send their bad towers back to china to get the good parts back out of them, do they use kids to flick their bic and sniff it to see what plastic bin it goes into??(all of the plastice has a carcinagentic in it)

 

We can build machines to do that, and pay a person to make sure it works, we dont need to kill off a generation so they can make the clothes and everything people use across the world!  Lets raise the tarriffs on china to what we have to pay to ship their, and lets tax them like they tax us, they wont want the work any longer and we will do the work and be the real super power of the world, kidna funny that the greatest country on this planet sends every thing to pay off china!  we are either gonna have to pay them or blow them up!

 

Peace

Jim

 

p.s what was this thread about?

 

 

Jim, the problem is that 'multi-national corporations' run the world AND our government.

 

National borders exist only on maps: money has no borders. And money runs and buys governments...  ours included.

[imiubu]

What does this mean? does this mean that kids 10 and under are making the clothes and tennis shoes we wear? when apple and H.P and all of the computer companys send their bad towers back to china to get the good parts back out of them, do they use kids to flick their bic and sniff it to see what plastic bin it goes into??(all of the plastice has a carcinagentic in it)

 

We can build machines to do that, and pay a person to make sure it works, we dont need to kill off a generation so they can make the clothes and everything people use across the world!  Lets raise the tarriffs on china to what we have to pay to ship their, and lets tax them like they tax us, they wont want the work any longer and we will do the work and be the real super power of the world, kidna funny that the greatest country on this planet sends every thing to pay off china!  we are either gonna have to pay them or blow them up!

 

Peace

Jim

 

p.s what was this thread about?

 

[imiubu]

Jim, the problem is that 'multi-national corporations' run the world AND our government.

 

National borders exist only on maps: money has no borders. And money runs and buys governments...  ours included.

 

No more 'Power to the People' that's for certain.

[t-pain]

I have never worked at walmart so I don't know the ins and outs but it appears they do offer health benefits, a 401k, etc.

 

http://careers.walma...mpany-benefits/

 

yeah for full time employees. but then walmart plays the game where they only give you 35 hours which makes you a part time employee, and thus they dont gotta give you a thing.

 

to be fair, its all been downhill , no one gets benefits anymore.

but i'm willing to bet walmart isnt the best store to work at.

Edited June 5, 2013 by t-pain

[+Malamute]

The graph at this link tells more of the story.  Adjusted for inflation, the minimum wage is currently somewhere in the middle of the historical high and low points.  Just showing a graph that depicts the downward trend since a certain date fails to show the whole story. 

http://economy.money.cnn.com/2013/02/14/minimum-wage-history/

 

 

 The problem with that graph is they have changed how they determine the CPI and inflation 3 times during that charts history thus totally bastardizing the results unfortunately.

 

 That is the little trick to it aye.

 

 Kinda like saying your water is just fine because they raised the amounts of toxic chemicals allowed in it.

 

 I have seen many comparisons based on true inflation and it has ranged from $10.50- $16.00 depending on baseline and inflation indexes used.

 

 It's an interesting topic Is why I posted it.  More in general terms than Walmart specific. 

 

 I think the larger picture is actually that occupations that pay double minimum wage are becoming dinosaurs which causes us to focus more on minimum wages and those just slightly above it. 

 

 Such as, the statistics that say this specific number of people are making minimum wage.  The problem is, the people making $7.75 an hour aren't added in when generally and effectively, they are making minimum wage.

 

 Personally, I don't believe someone that works full time should ever be paid poverty wages.  If working full time leaves you in poverty, there is a problem.  The wage is too low.

[SFC]

We were sold out by our own government long ago. But now it is kind of silly to lay the blame on the people that are still here actualy putting people to work. I wish everyone that worked at wal mart could be paid GM wages, but that is unrealistic, isn't it? Raising the minimum wage does nothing to help the problem.  If you work a low skill job you should not expect high pay.  By raising the minimum wage you also in effect de-value the next two or three tiers of pay scale.  Do you think if you raise minimum wage to ten bucks and hour the guy that was making twelve is going to get a 2.00 an hour raise?  No, they won't.    If you do not like Walmarts pay scale, don't work there and don't shop there. Maybe they will figure it out.

[+Malamute]

But can we agree, anyone that works full time should not be paid poverty wages?

 

That is the purpose of a minimum wage. To make employers  pay a fair rate to a full time employee that keeps them out of poverty?

 

 I mean $14,000 a year for full time work is simply too low. I don't care what job you are doing. Flippin burgers or digging ditches, full time is worth more than that.

 

 And I totally agree the jobs that pay in the teens is falling by the wayside. Why pay someone $15/hr when ya can just hire someone for $9.  Most factory and warehouse work has crumpled like that.  Let people work until they make $12, then fire em and hire someone new at $9.

 

 I honestly feel that is where the killer stuff comes in. 

 

 The ladder to the middle class($20/hr) is almost nonexistent anymore.  If you make less than $20/hr,  you are sadly not middle class btw. :-) Something lower than that aye. I suppose we could call it the new coined term "lower middle class".  I call it poor asss mostly. :-)

[Budz-4-U]

Working at Walmart, any business, is better than not working at all.  Qualifying for partial benefits is better than full benefits.

 

Why single out Walmart ??  It's not like other huge employers, McDonald's, Burger King, Subway.....etc. overpay their employees.

 

Very few mom and pops offer health insurance, due to the cost.  Mute point anyway, with ObamaCrap starting in 2014.

 

Businesses go into business to turn a profit, for the owners/investors.  They do not operate on the premise of giving all of their profits to their employees, in the form of pay increases and benefits.  That might not sound "fair", but that is how Capitalism works.  FYI.

[Chauncy Gardner]

Capitalism is an economic system.

 

Democracy is a system of government.

 

Democracy is able to trump capitalism - i.e. it can determine the rules of capitalism. Democracy only works with a well informed, intelligent electorate. From the 1950's through the 1970's, government rode herd on capitalism through consumer protection programs. The electorate was "smarter" in those days. They were more well informed about how a democracy works and what we,through our government, are capable of doing. Those were very good times for consumers. Capitalism run a muck is what caused the current Great Recession. It also caused the Great Depression. How much of this crap do we have to go through before "the people" decide that it is enough?

 

Eventually (I don't know how bad it has to get in order to reach "eventually") people will become fed up with corporations trampling all over them, and will call in "the government" (which happens to be us) to once again reign in the corporations.

 

The Republican monied interests started the Tea Party in order to advance their agenda (unrestrained capitalism). How long before the Democrats start making their representatives accountable by challenging them with primaries? We, through our government, can make the corporations dance to our tune instead of the corporations choosing the tune. And make no mistake about it, the corporations are choosing the tune right now.

 

I don't have much hope that things will change anytime soon though. People are just way too stupid to even understand what is being foisted on them. When I say they are stupid, I mean they are really, really, really stupid. I serve up the Tea Party as an example of how stupid people really are.

[CaveatLector]

We were sold out by our own government long ago. But now it is kind of silly to lay the blame on the people that are still here actualy putting people to work. I wish everyone that worked at wal mart could be paid GM wages, but that is unrealistic, isn't it? Raising the minimum wage does nothing to help the problem.  If you work a low skill job you should not expect high pay.  By raising the minimum wage you also in effect de-value the next two or three tiers of pay scale.  Do you think if you raise minimum wage to ten bucks and hour the guy that was making twelve is going to get a 2.00 an hour raise?  No, they won't.    If you do not like Walmarts pay scale, don't work there and don't shop there. Maybe they will figure it out.

When I graduated from grad school my first job was started at the starting wage that GM unskilled workers were making.  Over the course of the next 2 years my raises didn't keep pace with what GM gives.  So essentially I was making less than an uneducated and unskilled worker.  Was I working for a fair wage?  Maybe, but GM workers were making much more than what was "fair."

[OG Fire Beaster]

That is why GM had to have a "public" cash infusion. The rightful debt holders were also robbed. Kind of a micro comparison of the public sector. Promises based off of unsustainable extrapolation points(bubble). I'll take the lower paying job where I don't lose half of my compensation in the end, which someone made interest off of the whole time.

[cristinew]

I have never worked at walmart so I don't know the ins and outs but it appears they do offer health benefits, a 401k, etc.

http://careers.walmart.com/company-benefits/

only 41% to 46% of employees use the company's health insurance, in large part because many of Wal-Mart's low-wage workers simply cannot afford to pay the high premium the company charges

[SFC]

It isn't a perfect world by any stretch. But having been to less fortunate countries I can tell you with 100% certainty even our poor live like kings compared to most of the world. If you want a better life you have to sacrifice and do what you have to do to get there. Just blindly raising minimum wage will never solve this puzzle.