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Nobody is upset that Wal-Mart sells food to SNAP beneficiaries. What people are upset over is the fact that so many of Wal-Mart's employees need to go on public
by s73v3r_ 8y ago
Nobody is upset that Wal-Mart sells food to SNAP beneficiaries. What people are upset over is the fact that so many of Wal-Mart's employees need to go on public assistance because the company refuses to pay them enough to live on.
Trying to pretend this is about Wal-Mart selling food, and not the wages they pay is incredibly dishonest.
- sokoloff 8y ago> Nobody is upset that Wal-Mart sells food to SNAP beneficiaries. Literally the post to which I replied complained about "simultaneously are the beneficiary of 20% (or $14B) in taxpayer funded food stamps annually there is a problem". It seems that someone is upset about that.
- ddingus 8y agoLook at the root cause of why. Parent comment nailed it.
- s73v3r_ 8y agoNo. They are benefitting because they are having their labor subsidized by taxpayers because they don't pay enough. Again, pretending the reason people are upset is because they're selling food, and not because Wal-Mart is requiring you and I to subsidize their labor costs, is incredibly dishonest.
- dragonwriter 8y ago> They are benefitting because they are having their labor subsidized by taxpayers because they don't pay enough. That's not a labor subsidy, and if it was the simple fix would be to make employed people categorically ineligible for federal benefits—we don't do that, because we know it's not a wage subsidy, and all the hyperventilating about it being a wage subsidy is (at least on the part of public officials and other people that know anything about policy) dishonest grandstanding. (Now, work requirements in benefit programs do make them wage subsidies, because then the threat is “work at whatever job will have you or lose public benefits in addition to the marginal benefit of pay”; that's easily solved by removing such requirements.)
- s73v3r_ 8y agoIt is a labor subsidy, because Wal-Mart is not having to pay their workers a living wage because they can simply tell their workers to sign up for public assistance. I don't care about the nit-picky "Is it a direct labor subsidy or is it a wage subsidy" arguments; Wal-Mart benefits because they can pay lower wages and tell their employees to get public assistance. That's the story in its entirety. Wal-Mart is big enough, they can pay a living wage; they don't need my help.
- dragonwriter 8y ago> It is a labor subsidy, No, it's not, it's an anti-subsidy, because money is taken away from workers for getting paid by an employer, increasing the amount an employer needs to pay. > because Wal-Mart is not having to pay their workers a living wage WalMart wouldn't have to pay a living wage without it, either. Public assistance programs (aside from work requirements and the cost of lost benefits from failure to comply) actually increase market clearing wages, they don't decrease them. > because they can simply tell their workers to sign up for public assistance The people involved can sign up for public assistance with or without working for WalMart; further, they lose benefits due to mean testing based on outside income, which means WalMart has to give them >$1 of take home pay to get labor they would be willing to trade for $1 of net income increase.
- geezerjay 8y ago> What people are upset over is the fact that so many of Wal-Mart's employees need to go on public assistance because the company refuses to pay them enough to live on. If that's the case then I fail to see how a particular employer is responsible for that problem. I mean, if the economy is so depressed in a region that the absolute best some job seekers are able to get is a job that requires them to remain on public assistance then obviously the employer isn't to blame for the region's economy. In fact, that employer is already offering the very best jobs available in that region. Where does it make any sense to go after them instead of doing something to fix the economy and improve the lives and conditions available to those workers?
- will_brown 8y agoI think employers like Walmart and Amazon are unique cases. Again consider the fact that Walmart as a national grocer is able to milk the SNAP program on a national level to the tune of $14B/year. That enables them to move into a depressed area and set up shop, even at a loss, which in turn allows them to shutter the existing market incumbent(s). With the mom & pops gone and/or employee owned grocer now gone only Walmart is left. It’s using tax payer funds to out compete competition, which allows Walmart to further depress wages. It’s not like this behavior is all theoretical. In practice Walmart takes taxpayer money and turns around and lobbies congress to increase SNAP benefits so they can keep lining their pockets. Walmart takes losses in certain regions to put others out of business to become sole grocer. These losses are in part balanced and paid for by tax payer dollars at the national level. In many ways Walmart is directly responsible for lack of competition and closed stores, and despite the desperate attempt to say that is free market...it’s not free market when 1 company is subsidized by taxpayer money and the loser isn’t. You are right effort should be made into improving/fixing the economy and lives of workers...getting rid of corporate welfare for certain businesses is part of that.
- geezerjay 8y ago> Again consider the fact that Walmart as a national grocer is able to milk the SNAP program on a national level to the tune of $14B/year. Others in this thread have pointed out that "milk the SNAP" program is a very disingenuous and deceitful statement. SNAP is a wellfare program that subsidizes food purchases and both wallmart and amazon sell groceries, and somehow people like you spin the fact that supermarkets sell groceries to sound like these companies are stealing money from the government at the expense of poor people. And even then what's your point? Either supermakets sell food to underpriviledged people or they don't, and I really doubt that anyone would advocate that poor people should be barred from supermarkets where regular people shop.