The Welfare Queen named
Walmart
Wal-Mart is the model "low-road" corporation in the global economy. Its efficiency is celebrated; but its exploitation is caustic. The average pay of a Wal-Mart employee is $8.23 per hour, or an average yearly income of $14,000 -- not enough to lift a family out of poverty. Wal-Mart is infamous for requiring workers to work overtime off the books. It's been cited for locking workers in plants overnight. The company has been hauled into court for discriminating against female employees. And it is viciously, rabidly anti-union, crushing any attempt by its workers to organize to gain a fair share of the profits they help generate.
But Wal-Mart doesn't merely follow the low road; it drives its suppliers and its competitors into the same race. When Wal-Mart comes to town, it purposefully wipes out small mom-and-pop stores, leaving small towns looking like they were hit by a neutron bomb -- buildings intact, but people gone. Wal-Mart also undercuts big competitors that have unions and pay decent wages and benefits. They must slash wages, cut back on benefits or hang it up.
Given its size in the United States, Wal-Mart is a major force in driving wages down and forcing cutbacks in benefits. It is a central reason why we have an economy in which CEO salaries are up, stocks are up, but wages are down.
In China, Wal-Mart pushes its suppliers to lower their costs, generating sweatshops in which young workers -- primarily women -- are forced to work grotesque hours at subsistence wages. According to The Washington Post, Wal-Mart even pressures its suppliers to pay less than the Chinese minimum wage.
Wal-Mart also exploits taxpayers, for it is what Ronald Reagan would denounce as the leading corporate welfare queen. It's estimated that Wal-Mart's government subsidies total a whopping $2.7 billion, or $2,100 per employee. An internal memo to the board leaked recently reported that "our [health care] coverage is expensive for low-income families, and Wal-Mart has a significant percentage of associates and their children on public assistance." In fact, nearly one-half of the children of Wal-Mart employees are either on Medicaid or have no insurance at all.
While Wal-Mart is driving down wages and driving up public health care costs, its CEO and its owners are making out like bandits. The Walton family is the richest in the world. And they use their private wealth to foster their low-road policies. The Waltons donate millions to politics. Most goes to Republicans who defend their low-wage sweatshop practices, while 20 percent goes to buy a few business Democrats and divide the opposition. They are leading contributors to the voucher movement seeking to privatize education, and staunch advocates of the free trade policies that have stymied efforts to link trade access to the right to organize, environmental protection or even a crackdown on sweatshops.
Across America, people are starting to realize the stark reality: Wal-Mart's triumph is the defeat of middle-class America. If Wal-Mart sets the pace, Americans will pay the price, in declining wages, rising health care costs, longer hours, worse workplace conditions and rising personal taxes to offset soaring corporate subsidies.