Sign up FAST! Login

A new report claims that Wal-Mart's wages could be costing taxpayers $900,000 to $1.75 million per year, per store.

Forbes
A new report claims that Wal-Mart's wages could be costing taxpayers $900,000 to $1.75 million per year, per store http://bit.ly/13vtDtf
12:09 AM Jun 02 2013

Stashed in: Poverty, Walmart

To save this post, select a stash from drop-down menu or type in a new one:

If you sell something for cheaper, then yes the government collects less taxes.  But here's the dirty little secret when you look at it from a normal person's perspective and not a tax gobbling monster one:  PEOPLE LOVE LOW PRICES.  There is some impact on having lower prices based on their employment model, but in general its their efficient use of supply chains and technology that are by far the biggest factor.  

So the bottom line is "COST" isn't quite the right word as it implies there's some baseline that it should be and anything less is a cost. 

Your point is a good one, and I'm trying to understand the point of the article.

Is it that Walmart pays wages that still keep the employed person in poverty so taxpayers end up subsidizing that person's wages?

Yes, with food stamps, etc.

So either:

1. We force Walmart to raise its wages, which will increase its prices, which will lower its sales, which will drive more people to use online eCommerce, which will force Walmart to lay off some people because it's losing business to online retailers, or

2. We stop offering food stamps to underpaid employees and as a result Walmart will never be able to hire enough people since people cannot afford to live on Walmart wages, or

3. ???

This is a hard problem.

You May Also Like: