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How does Wal-mart stay in business if "no one has money to afford them"?

by jpindar 10y ago

michaelmrose 10y ago
Walmart isn't singular they are part of a huge array of companies paying shit wages. A lot of people in the same economic class as the workers are receiving government assistance meaning you are footing the bill for the food stamps that feeds the cashiers kids while ironically congratulating yourself on the good deal you got.
coldtea 10y ago
That's easy to answer: it doesn't in the long run (assuming it was the only player -- of course the reality is more nuanced). But it can destroy a whole lot of value (and be the last "business" standing) in the short and mid-run. In fact as such businesses erode the working/middle class, short and mid-term they become more enticing to it than other stores, since they are the cheaper options. If a company causes a "race to the bottom" for jobs and wages by selling too cheaply and paying too little, then those whose wages are affected will mostly be able to shop at that place exactly. And if that company is one business upon many that are causing the same issues, then people wont even be able to single them out for blaming...
jonathankoren 10y ago
Easy. Food stamps. https://www.google.com/amp/s/www.forbes.com/sites/clareoconnor/2014/04/15/report-walmart-workers-cost-taxpayers-6-2-billion-in-public-assistance/amp/ https://www.google.com/amp/s/www.forbes.com/sites/clareoconn... http://www.slate.com/articles/business/moneybox/2014/04/walmart_employees_on_food_stamps_their_wages_aren_t_enough_to_get_by.html http://www.slate.com/articles/business/moneybox/2014/04/walm...
ubernostrum 10y ago
They stay in business courtesy of government programs to keep people afloat enough to afford basic necessities, and by negotiating to pay reduced or no local taxes or infrastructure costs, coupled with relocating stores any time a tax-break deal expires. As long as you don't have to pay a living wage (because the government picks up the difference) and don't have to pay the cost of building and maintaining the infrastructure of your store (because the government picks up the difference), you can "sustain" an otherwise-unprofitable business for quite a long time.

How does Wal-mart stay in business if "no one has money to afford them"?

by jpindar 10y ago

How does Wal-mart stay in business if "no one has money to afford them"?

Walmart isn't singular they are part of a huge array of companies paying shit wages. A lot of people in the same economic class as the workers are receiving government assistance meaning you are footing the bill for the food stamps that feeds the cashiers kids while ironically congratulating yourself on the good deal you got.

coldtea 10y ago

That's easy to answer: it doesn't in the long run (assuming it was the only player -- of course the reality is more nuanced). But it can destroy a whole lot of value (and be the last "business" standing) in the short and mid-run. In fact as such businesses erode the working/middle class, short and mid-term they become more enticing to it than other stores, since they are the cheaper options. If a company causes a "race to the bottom" for jobs and wages by selling too cheaply and paying too little, then those whose wages are affected will mostly be able to shop at that place exactly. And if that company is one business upon many that are causing the same issues, then people wont even be able to single them out for blaming...

jonathankoren 10y ago

Easy. Food stamps. https://www.google.com/amp/s/www.forbes.com/sites/clareoconnor/2014/04/15/report-walmart-workers-cost-taxpayers-6-2-billion-in-public-assistance/amp/ https://www.google.com/amp/s/www.forbes.com/sites/clareoconn... http://www.slate.com/articles/business/moneybox/2014/04/walmart_employees_on_food_stamps_their_wages_aren_t_enough_to_get_by.html http://www.slate.com/articles/business/moneybox/2014/04/walm...

ubernostrum 10y ago

They stay in business courtesy of government programs to keep people afloat enough to afford basic necessities, and by negotiating to pay reduced or no local taxes or infrastructure costs, coupled with relocating stores any time a tax-break deal expires. As long as you don't have to pay a living wage (because the government picks up the difference) and don't have to pay the cost of building and maintaining the infrastructure of your store (because the government picks up the difference), you can "sustain" an otherwise-unprofitable business for quite a long time.