Politix

Prev Next
Featured Quizzes
Politix Daily Headlines
Featured Debates
Issues

See all 17 issues

People
White House

See all people

WALMART

Is Walmart Actually Good For Poor Americans?

That's the claim from an influential libertarian

Next>

by Mary Noble

Senior Editor t

Image: AP

In the wake of the Walmart strike and calls for a Walmart boycott, we've heard a lot about how little Walmart pays its workers, and how much the company costs the taxpayer in food stamps and Medicaid. But does the mega-store really hurt poorer Americans? Reason Magazine's Peter Suderman sent this impressively-logical series of tweets arguing that Walmart actually benefits those with lower incomes.

1. Walmart's customer base is heavily concentrated in the bottom income quintile, which spends heavily on food.

2. The bottom income quintile spends about 25 percent of income on food compared to just 3.5 percent for the top quintile.

3. So the benefits of Walmart's substantially lower prices to the lowest earning cohort are huge, especially on food.

5. Walmart's wages are about average for retail. Not amazing. But not the worst either.

6. Paying Walmart's workers more would mean the money has to come from somewhere. But where?

7. Erase the Walmart CEO's entire salary, and you can raise average hourly wages by just a penny or so.

8. Erase the entire Walton family fortune and you get an average $1/hour boost to Walmart workers.

9. Raise prices to pay for increased wages and you cut into the store's huge low-price benefits for the poor. It's regressive.

You can read the full series of tweets at Via Business Insider.
Like this article? B Vote Up
?

Do you think Walmart benefits poorer Americans?

Comments (view in Forum)

  • u
    Nemesis3X
    !
    I like #7 and 8. Puts a little perspective on taxing the rich more. The money has to come from somewhere..... Next at bat... Middle class.
  • o
    woodtick57
    !
    Sure. An efficient , low priced store to buy ggoods at would be beneficial to poor people. As long as people don't expect to live off part-time job at such a place...
  • ACTSmom
    !
    Not only does it benefit poor Americans but those of us who buy food/paper goods, greeting cards, etc. at Walmart. Sorry, but it doesn't make sense to pay $1.50 more for a box of cereal at Publix.
  • LGRepublican
    !
    I tell that same thing to people all the time. Why would I shop at a regular grocery store and pat $2 more for THE SAME THING? I wonder how many of the people who flat out refuse to save money by shopping at Walmart are the first ones to go ballistic when gas goes up a penny a gallon......
  • PayThatCEO
    !
    I don't shop at Wal-Mart and I'll bet I spend less on groceries.

    Wal-Mart really isn't that much cheaper than other grocery stores, you just think you're getting a bargain because you've been led to believe it. Wal-Mart's meat is outrageously expensive. Their produce is sub-standard. There are very few discounts or deals or weekly specials on their groceries. What you see is what you get.

    I shop both Publix and Kroger. Publix for the BOGO sales that save me tons of money, and Kroger for most everything else. I plan my meals around what's on sale and I use coupons and shopper reward cards (which give me money off on gas).

    It takes a little time, but in the end I save more than when I simply walk around Wal-Mart throwing things in the cart and think I'm saving money.
  • ACTSmom
    !
    @PayThatCEO ...I've compared prices numerous times and no way is Publix less expensive. I do not buy much of Walmart's meat...maybe chicken and it's the same brand sold at other groceries. And their deli meats (Prima Della) are $2.00 - $3.00/lb cheaper than the Publix brand and they're excellent. I do buy some things at Publix...prefer their produce. But their BOGO are not a lot cheaper than regular priced canned/packaged goods at Walmart. And paper products are way more expensive. Publix doesn't have a shopper's card and IMO coupons are a waste of time since most of them are for things I don't ordinarily buy anyway. Besides that, Walmart takes coupons should I bother with them. With the price of gas, I'm not running around all over town to save a few cents either and my walmart and publix are close by.
  • PayThatCEO
    !
    @ACTSmom

    Like I said, you have to work at it if you really want to save money. You can't just cruise the store throwing things in the cart and think you're saving money. If you think coupons are a waste of time, then that shows you're not willing to be in the effort. A coupon along with a BOGO free has gotten me cereal for .75 a box or a jar of spaghetti sauce for .50. It's all in how you play the game.
  • ACTSmom
    !
    @PayThatCEO ...why would you think I roll through walmart just throwing things into my cart? I don't buy junk foods or many prepared foods. We eat well and healthy. I can buy organic milk at Walmart, name brand that I prefer (Stoneyfield) for less than the Publix brand and lots less than Horizon at Publix. Now those kinds of things, I'd use a coupon if I had it. But 25 cents off 2 boxes of mac and cheese would do me no good at all.
  • PNWest
    !
    Most liberals aren't big Walmart fans but I think it is more complicated than just Walmart is Good or Walmart is Evil. This company has been one of the most innovative in history. People think of companies like Apple and Google but Walmart is responsible for perfecting things like just in time inventory, energy efficient store designs, concentrated detergents, smaller packaging, efficient delivery systems and so on. All of these help the environment and save money Walmart on energy costs. Unfortunately they treat their employees like dirt. There can really be no debate that having a Walmart in the community lowers prices. This helps the poor more than it does the rich. Most people don't know it but Hillary Clinton sat on the Walmart Board of Directors at one time.
  • Neo_NtheMatrix
    !
    Well, this is a pretty well reasoned post that you made. Since you understand the great contributions and innovations that Walmart has given to this country, let me ask you what could Walmart do so that they are not treating their employees like dirt? Remember, before you answer this, if you suggest a pay raise or benefits that money has to come from somewhere (i.e.: the customers). The customers are mostly poor and can barely afford Walmart prices as is. If Walmart raises the prices on them it could be detrimental to those same poor people.

    In a capitalist society there will always be poor people. The poor people are the ones who have the least ability to contribute to society. To get paid $10 an hour just to punch keys on a cash register or stock food on a shelf is a pretty good wage. People with low skills should not be expecting to make $30 -$40K a year, they don't have the skills to earn it. But also, Walmart employees should understand that this is the job they have today. Nothing says they can't develop more skills and move on to better paying jobs in the future.

    So I ask you, what can Walmart do so that you would say they are not treating their employees like dirt?
  • PNWest
    !
    @Neo_NtheMatrix That was a good question.

    I believe that they should look at a company like COSTCO as an example. COSTCO employs people with similar skills to Walmart workers but they have better benefits and pay their workers better than Walmart. Because of this they also have much lower turnover. They also manage to have low prices and high customer satisfaction.

    Walmart has a terrible history of bullying their workers and if you ever spend any time talking to them (I have) you'll find very little love for the company. Talking to COSTCO employees you find the opposite. They say good things about their employer.

    Low turnover and happy workers mean higher productivity which means more profits. If COSTCO can do it then Walmart could also.

    By the way although I do feel that Walmart treats their employees like dirt I acknowledge that it is their right to treat their employees in any way they choose as long as they obey all of the applicable federal, state and local laws. The employees are not slaves and the public can choose to shop at Walmart or not. If I were a stockholder I would want Walmart to become more worker friendly because I believe this would lead to more profits in the long term.
  • methinks
    !
    @PNWest Costco and Walmart are apples and oranges. Walmart caters to the lower income bracket. Costco does not. How many Mercedes and BMW's do you see in Walmart parking lots compared to Costco? The "lower" prices at Costco, plus their membership fee are out of the reach of many of Walmart's customer base.
  • PNWest
    !
    @methinks The skills required to stock the shelves, manage the inventory, sweep the floors, bake the goods, cut the meats, run the cash register and pretty much every other job function in both companies are similar or even identical. Both companies are in the same business, consumer retail. If you don't think that Walmart considers COSTCO to be a direct competitor you are woefully mistaken. Your point of membership fees etc is irrelevant to how each company decides to treat it's employees.
  • u
    Cheenoguy
    !
    @methinks
    We have compared the prices and those lower prices at Costco more then pay for the membership (and if you do as we do and buy the $110 membership the 2% back pays for the membership).
    If you have a budget to keep your first month with Costco kinda sucks because you have to limit your diet until you build up the variety of your purchases.
    The prices, however, are almost always cheaper. For example, we pay the same for organic Mac and cheese as a higher end plain conventional Mac and cheese. We could save over Kraft if we went with the Kraft option at Costco but we don't.
    The cheaper prices also hurt those who grow or make their products as well. Unfortunately Walmart is part of a materialistic movement that has changed this country to the point where they are almost a neccesary evil.
  • View all 9 replies >
  • u
    AceLuby
    !
    No, it creates a race to the bottom. Low prices because of low wages and low wages require you go to the place w/ the lowest prices. It's a self fulfilling prophecy. Not to mention that all the other crap they sell is ALL made in China, so they are only creating jobs in retail and shipping, not a single job anywhere else. It's a great system for Wal-Mart executives, but it creates reliance on the corporation for those who feel they cannot shop anywhere else, and in turn, a reliance on cheap Chinese goods and labor.
  • o
    woodtick57
    !
    @AceLuby
    Bullshit. A good friend of mine has his US made products on their shelves. outright lies do not benefit any side in a discussion...
  • o
    woodtick57
    !
    @AceLuby
    it is more than just anecdotal evidence. in no way are your figures even close to accurate.

    they are the largest purchaser of chinese goods. they are one of the largest purchasers period.

    if you do not like Walmart, do not shop there. i do not like many of their business practices, nor many of their low quality products, so i do not shop there.
  • View all 7 replies >
  • u
    Realthinker
    !
    There is no doubt that food and health care items such as otc pain relievers, cold remedies, papar products and other necessities are cheapest at Walmart. Yes, unionizing would force cost increases that will hurt the poor. That is as plain as the nose on your face. So why discuss the obvious?
  • marine1
    !
    IF they were to unionize would 1.3 million people paying union dues be a wind fall for the union or what? CA-CHING
  • u
    Realthinker
    !
    @marine1 Bingo. Yet who dares use the words greed and union in the same sentence? It's management that's greedy, right? The effort to unionize Walmart is an example of union greed.
  • MRMacrum
    !
    Is Walmart good for poor Americans?........ That answer is up to poor americans who shop there. I do know Walmart is great for China. Not so good for the US economy.
  • LGRepublican
    !
    Of course it does. It offers an option for purchasing goods at a lower price. Since Walmart also has almost everything under one roof, it also saves time and travel.
  • DerivePI
    !
    Walmart benefits everyone who shops there (otherwise people wouldn't choose to shop there). Walmart benefits everyone who chooses to work there (otherwise people wouldn't choose to work there). Nothing complicated here and we don't need to know anything more about CEO salaries, quintile sales, etc...
  • Christibro
    !
    Yes it helps them. They have jobs where none would exist. They can keep at risk youth employed and off the streets. They pay similar wages as others do. May need less welfare since there is some worked for wages.
  • SpookyThreeTwo
    !
    Alright ... you had me laughing at "keeps at risk youth employed and off the streets" At our Walmarts up here, they employ shoplifters, drug addicts ... it's because Walmart (as well as the other grocery stores) is the only employer that will hire them.

    And i'd say at least thre quarters of them are on some kind of public assistance with dependents. Being on a little welfare is like being a little pregnant.
  • InjusticeSucks
    !
    That may be the funnies Stupid thing i have ever heard in my short life.Wal-mart is like War its not good for anything that is living other then the Gay bashing CEO of the Biggest Greediest Corporation on Earth.
  • mimi57
    !
    I shop at Wal*Mart occasionally, usually for soap, shampoo, make-up, etc.(name brands) and dog food, treats. My problem with them is almost everything is made in
    China, I know that keeps our prices down, but on the other hand I hate buying so much
    that is made there. My local grocery store is independently owned and offers fuel perks,
    I know the man who owns it, he is elderly now and a great person, some products he sells are made locally and sold there, and the prices are good. I don't dislike Wal*Mart
    retailer, I just don't like the store, and the 'Made In China' labels, and would never buy
    clothing there, but that's just my opinion..but it is Capitalism at it's best.
  • Thegrif
    !
    @mimi57 i hear ya, I also agree with ya on all the made in China stuff. But as far as the poor, or anyone looking to save money, I just don't see anyway around walmart and their buying power.
    Ps- glad to see ya back.
  • mimi57
    !
    @Thegrif Thanks, I agree, it's like the lesser of the evils...I have a friend who has worked at Wal*Mart for about 15 yrs.(I'll never know how she does it). The customers are really
    rude, calling the cashiers names like, "retards", dummies', etc. She makes about 17.00
    an hr. now, not terrific...but not horrible either. Her son was diagnosed w/ Hodgkins Lymphoma in August, and they have been amazing in the help they have given her, ie.,
    supplying food for benefits, allowing her to take off whenever he needs her, and even
    donating items for the benefits, but, I still have mixed feelings about it. It's here to stay,
    for sure..It just doesn't get a whole lot of my money, I usually have to almost get dragged
    there. lol
  •
    Thegrif
    !
    @mimi57 yea I get dragged there too, but I thought it was just me being a stereotypical man, lol.
    Quality of some things is just up to par, but price, for most people, I think is the big issue. I do really try to do make most of my kind of purchases from mom and pop shops.
  • Your_Name_Here
    !
    I don't think Walmart is as good for poor Americans as it is for poor Chinese. Since so much merchandise comes from other countries, Walmart is ensuring that more and more money is spent in other countries. If they required 75% of what they sold be manufactured here, that money would have a 'ripple' effect that would do more for the poor than offering them cheap goods. A lot of the poor are not buying anything at all - we are buying it for them when the government takes our money and redistributes to other people because our government doesn't have the balls to do what is necessary. There should be an import tariff to offset the effort needed to determine toys are toxic, dog food will kill your dog, drywall will corrode your electric and to counteract the damage being done to the environment. Maybe that's why made in the USA cost more? We at least have a basic level of assurance that what we buy will not kill us. Depending on our government to protect us is a crap shoot.
  • mimi57
    !
    Yeah, I forgot about the poison in the dog food..I hope my dogs don't think I'm trying to kill them. LOL...I don't trust the Chinese.
  • Mbjhug
    !
    I would like to do more research before I dive in with these tweets, but something seems amiss here. That being said, I don't think Walmart is good for poor Americans, I think poor Americans are good for Walmart. They have a HUGE base of consumers, and they continue to perpetuate that trend by employing workers for low wages, who invariably will spend their money right back into the corporate coffers.
  • jessejaymes
    !
    Since I can remember (about 60 years) the conservatives of America have raged and ranted about the Communist threat. They have justified this country spending more on the Military than the next 10 worst military spending nations combined. We have more Nukes than the rest of the world combined even today. More people have been called commies and socialists and those labels rolled over into defaming ANYONE who doesn't goose step to the far far right. AND YET you people run off to Walmart who is in fact, the single largest customer of China in the world. Communist China. You have broken the back of the American worker by buying cheap crap that will break (and you know it will) and most likely will break on the way home while sitting in the sack when you hit a pothole.

    I have comparison shopped and Walmart food is no cheaper than anyone else. For Example, you would hardly expect a Walgreens to be cheaper than Walmart on anything. But their Milk is significantly cheaper. By paying attention I can find gasoline as cheaply or cheaper than Walmart. In fact there is nothing I can get from Walmart that I can't find as cheaply and a better product to boot than at Walmart.

    Do I guy Chinese manufactured goods? Of course. It's impossible to get around it. But I don't buy Chinese goods if I can find a "made in China" stamp on it somewhere. And I damn sure don't walk in the door at Walmart. Blood money made off the backs of American workers. All 5 Waltons are in the top 50 richest people in the world. I have been in a Walmart once in the past 10 years. I won't be back in one in the next 10 years. But they won't miss me. Because YOU sit around complaining about job outsourcing, socialism, commies and then you go right back to Walmart and spend your money with the outsourcing, socialistic commies of Walmart and China. The problem is YOU
  • PayThatCEO
    !
    I am so happy to see someone else say this. I've been thinking the same thing for a long time.

    When I was little I was taught to hide under my desk at school at the sound of an air raid siren. How many of you remember that loud, obnoxious sound from way back when?

    We were told to fear and hate the Commies. Communists wanted to kill and destroy us (kinda like terrorists these days). They wanted to ruin our way of life. They wanted to nuke us and had missles aimed at our country. Any minute they could shoot off the "big one" and we'd be vaporized. It went on for years and years and years this brainwashing that kept us under control.

    Russia didn't have much to offer us in the way of enhancing our American wealth. They neither bought nor sold goods. They were a worthless and annoying fly on the back of a horse's ass, but America used their political ideology to spent untold amounts of money on defense.

    Well, Russia's communism is no more. They're as much a threat as wet noodle, but wait. Communism is still alive and well in a country we not only buy billions of dollars in goods from, but we're in debt up to our eyeballs to. Either someone was lying about communism or we're suddenly in bed with our mortal enemies. But wait...again. Our mortal enemies aren't commies these days. Commies are Ok, now (as long as they have money to loan and things for us to buy). It's those nasty old terrorists we have to fear now. Remember duct tape and plastic wrap?

    See why some of us older folks are cynical? We're old enough to start seeing patterns in all this and many of us believe our government is, and always has been, full of crap. In 50 years, there will be a new "...ism" to fear. Mark my words. It's the way America works.
  • R Load more comments...