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Of course it's a subsidy. If employees are only able to work for my company because they get food stamps, those food stamps make my business model viable. Witho
by andor 8y ago
Of course it's a subsidy. If employees are only able to work for my company because they get food stamps, those food stamps make my business model viable. Without them, I would not be able to find employees, so either I'd have to increase salaries or go out of business.
All the companies mentioned in the document make profits way higher than the "subsidies" they receive. They could easily increase wages or pay this tax.
- tylerhou 8y agoSNAP is not corporate welfare - in fact, it is the exact opposite! Employers have to pay their employees more because SNAP exists: since SNAP benefits decrease with more income, SNAP benefits decrease the marginal benefit to a worker for each extra hour worked. This reduces a worker's incentive to work and thus reduces the labor supply, so wages have to rise to maintain equilibrium (assuming labor demand is downward sloping). Another way of looking at it is SNAP gives workers a better alternative to working - not working - so it raises workers' reservation wages: https://en.wikipedia.org/wiki/Reservation_wage https://en.wikipedia.org/wiki/Reservation_wage If it were not for SNAP, you'd actually be able to hire more workers at a cheaper price because the alternative to working - not working - would no longer be as attractive. (Posted this comment top-level on a dupe, deleted it there and reposting here.)