For good liberals who have never stepped foot inside a Walmart (how could a good liberal live with themselves if they went inside a place so inherently evil?) nothing makes them attack Walmart more than the "low wages." For a solid rundown of how liberals perceive Walmart you can hardly do better than Timothy Egan's piece in the New York Times this past week. Behold! Corporate greed meets income inquality:
By one measure, done by House Democrats last year in looking at data from Wisconsin, the average Walmart superstore cost taxpayers $904,000 a year in various subsidies, or more than $5,000 per employee.For Walmart's hilarious rebuttal you can click here. It's good for a few chuckles.
Walmart disputes these figures, claiming the average full-time store worker makes at least $12 an hour, or enough to be just above the poverty level for a family of four. But these numbers are skewed by higher pay for management. The average “associate” at Walmart makes $8.81 an hour — poverty wage — according to the market-research firm IBISWorld, as of 2011. Another independent source, Payscale, says the average is under $11 an hour. No matter the exact figure, there’s no dispute that Walmart’s business model forces thousands of hard-working people to look for outside help just to get by.
And under that model, Walmart has made a fortune — $17 billion in profits last year, executive compensation for one man at the top in excess of $20 million a year, and a windfall making the six heirs of the founding Walton family worth at least $150 billion.
Walmart could make life easier for its 1.4 million workers, without diminishing its stock value. Writing in Fortune.com, Stephen Gandel concluded that Walmart could give workers a 50 percent raise without hurting shareholder value.
There are a lot of points to make about this, starting with the fact that people will not take jobs that pay too little or are too demeaning for the wage that is associated with them (this is why the left says we need illegals, because there are jobs Americans won't do...none of these seem to be at Walmart even though these wages are "low") and continuing on through with the low prices that Walmart offers customers help those who are low wage earners enjoy a higher standard of living than they otherwise would.
I, however, cannot move past the point about Walmart costing American taxpayers money because Walmart employees are paid so little that they need Medicaid, food stamps, and other transfer payments in order to survive. The Walmart rebuttal does a good job explaining Walmart's tax burden and their private foundation which helps those in need, but my point is that Walmart is able to do this because of the programs that good liberals champion at every turn. You see, if all these big government welfare programs were not as expansive as they were, did not have increasingly lax qualification standards, and in many states offer a standard of living by themselves that is on par with middle class earners who do no receive these benefits maybe Walmart would be forced to pay their workers more. People know they can collect a check from Walmart and still get their benefits and Walmart also knows it can pay a low wage while the government will help Walmart's employees make ends meet through various welfare programs. Why should Walmart pay a wage it deems excessive when there demand for jobs still exists and the government is there with transfer payments to aid Walmart's workers?
My question to the good liberals out there is not why you think Walmart should pay more, but rather what incentive does Walmart have to pay more when people are still interested in working their despite the "low wages" and when government transfer payments that have grown to record levels will help out Walmart employees if they qualify for certain welfare programs? It seems to me that if liberals want Walmart, and other large corporations, to pay more they should be fighting to shrink the welfare system back to the limited safety net it should be. That way Walmart can't rely on government programs to be another paycheck for their employees and people won't apply to Walmart jobs because they don't pay enough as there are no welfare programs to supplement Walmart's wage. Of course, this would rely on liberals trusting the market, which will probably happen at the same time Walmart decides to raise wages just for the hell of the exercise.
Until then, I will appreciate the lack of liberals in my Walmart Supercenter. It just means more deck chairs for the rest of us.