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One Walmart's Low Wages Could Cost Taxpayers $900,000 Per Year, House Dems Find


Posted: 05/31/2013 12:31 pm EDT | Updated: 05/31/2013 12:46 pm EDT

Walmart wages are so low that many of its workers rely on food stamps and other government aid programs to fulfill their basic needs, a reality that could cost taxpayers as much as $900,000 at just one Walmart Supercenter in Wisconsin, according to a study released by Congressional Democrats on Thursday.

Though the study assumes that most workers who qualify for the public assistance programs do take advantage of them, it injects a potent data point into a national debate about the minimum wage at a time when many Walmart and fast food workers are mounting strikes in pursuit of higher wages.

The study uses Medicaid data released in Wisconsin to piece together the annual cost to taxpayers for providing a host of social safety net programs, including food stamps and publicly subsidized health care, to workers at one Supercenter in the state.

According to the report, Walmart had more workers enrolled in the state’s public health care program in the last quarter of last year than any other employer, with 3,216 people enrolled. When the dependents of those workers were factored in, the number of enrollees came to 9,207.

"When low wages leave Walmart workers unable to afford the necessities of life, taxpayers pick up the tab," the report says.

HuffPost asked Walmart for comment but didn't immediately hear back.

After accounting for the total number of Walmart stores and employees across the state and the per-person costs of BadgerCare, as the state’s health care program is known, the report's authors estimated that the cost of publicly funded health care comes to $251,706 per year for a 300-employee Supercenter.

The authors then added up the projected costs of other public-assistance programs available to families on BadgerCare, such as reduced-price school meals, Section 8 housing assistance, the earned income tax credit and energy assistance. Assuming all those workers avail themselves of those additional programs -- granted, an unlikely scenario -- the report extrapolates that the final tab would top $900,000.

The report, entitled "The Low-Wage Drag on Our Economy," was produced by Democrats with the House Committee on Education and the Workforce, which is chaired by Rep. George Miller (D-Calif.). The committee says it chose Wisconsin because the state's data "appears to be the most recent and comprehensive." The paper is an updated version of an earlier report by the same committee in 2004, which at the time estimated that a 200-employee Walmart store could account for $400,000 in public assistance for workers.

"The labor policies of Walmart, and those of companies that emulate its low-road approach, end up leaving taxpayers holding the bag," Miller said in a statement.

Critics have long denounced Walmart for paying such low wages that many workers are forced to take advantage of public-assistance programs like food stamps or Medicaid. (Notably, many Democrats who lament this scenario are strong backers of such programs.)

In fact, many workers throughout the retail industry take advantage of these programs, though a 2004 study of Walmart workers in California estimated the chain's workers availed themselves of 38 percent more non-health, public-assistance money than workers at competing stores. (That report, by the University of California, Berkeley, had findings similar to the committee's 2004 study.)

The Congressional report's timing is no accident. Miller, along with Sen. Tom Harkin (D-Iowa), has sponsored legislation that would raise the federal minimum wage to $10.10, a boost that would presumably benefit many Walmart store employees. (The federal minimum wage, which prevails in the 31 states that do not mandate a higher one, is currently $7.25, where it's been since 2009.) Democrats have argued that boosting the minimum wage would help pull some workers off of these programs.

Following sparse but high-profile walkouts by Walmart employees late last year, the union-backed worker group OUR Walmart announced "prolonged strikes" by employees this week. As of Thursday, organizers said 80 workers had joined the walkouts -- a tiny fraction, for sure, of the estimated 1.4 million Walmart workers across the country, though labor activists are hopeful the strikes will inspire other workers.

Aubretia Edick, a Massachusetts woman who earns $11.70 an hour and receives public assistance, food stamps, Section 8 housing, and state-funded health care, said her reliance on the safety net is one reason she plans to join the strikes. “Walmart doesn't pay my salary,” she said. “You pay my salary.”

When she started working for Walmart, she said, she had expectations that have since proved unattainable. “I thought I could make it on my own,” she said. "That didn't happen.”
[perhaps Aubretia Edick shoudl quit working for a shitty company like Walmart, get some skills and get a better job?!?!?!?!]
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I used to go to that dump to buy ammo, then the local store discontinued sales of ammo and firearms

I propose a US minimum wage of $10.69/hr,...

Code: Select all

Should we force them to give unskilled employees $60,000/yr and a pension so they won't need to receive government aid? 

Aubretia Edick, a Massachusetts woman who earns $11.70 an hour and receives public assistance, food stamps, Section 8 housing, and state-funded health care, said her reliance on the safety net is one reason she plans to join the strikes keep sucking the government tit. “Walmart doesn't pay my salary,” she said. “You pay my salary. And you bastards had better keep it up, too

rubato wrote:As I have said many times; having a minimum wage which is too low amounts to subsidizing employees at the expense of everyone else.

Walmart wages are so low that many of its workers rely on food stamps and other government aid programs to fulfill their basic needs, a reality that could cost taxpayers as much as $900,000 at just one Walmart Supercenter in Wisconsin

Sam Rawlings Walton, grandson of Wal-Mart founder Sam Walton, has given $300,000 to the Democratic super PAC Priorities USA Action.

While the Wal-Mart company splits its donations between Republicans and Democrats, multiple members of the Walton clan are major Republican donors. Walton’s donation in support of President Obama bucks the family trend.

Alice Walton, Sam Walton’s aunt, has given $200,000 to the pro-Romney super PAC Restore Our Future and gave $2.6 million to a group backing George W. Bush in 2004. Jim Walton, Sam’s uncle, also gave $200,000 to Restore Our Future. Alice and Jim Walton, along with Jim’s wife, Lynne Walton, have also contributed to the National Republican Senatorial Committee and National Republican Congressional Committee.