Perhaps Walmart executives should hold a private viewing of the Lion King to learn about the Circle Of Life. After fighting tooth and nail against living wages for employees and working with ALEC, Walmart’s own selfishness is catching up with them. As one of the largest corporations on the planet, Walmart execs work tirelessly to prevent its underpaid employees from getting higher wages and health insurance benefits. Walmart now faces a 21% loss in its fourth quarter and it’s blaming the expiration of food stamp benefits.
On Thursday Wal-Mart reported a 21 percent decline in its fourth-quarter profit. The company said that the Nov. 1 expiration of a temporary boost in food stamps is hurting its shoppers’ ability to spend. It’s also caught up in the debate about minimum wages and dealing with increasing competition from dollar stores and grocers. – MSN Money
Walmart has plans underway to open up 6 stores in Washington, DC and threatened to pull out if the DC Council approved a new living wage bill. The council approved it anyway but not surprisingly the bill was vetoed by D.C. Mayor Vincent Gray in an attempt to keep peace with Walmart.
Mike Debonis of the Washington Post states,”The city’s minimum wage is $8.25 an hour. The bill would raise the annual earnings of a full-time employee making the lowest legal wage from about $17,000 to $26,000.” It should be noted that $26,000 is just above the Federal Poverty Line for a family of four. At a pay rate much lower than this with limited hours, it’s easy to understand why one Walmart store hosted food donation drives for it’s own employees.
Walmart’s new 21% loss means that in addition to the government subsidizing Walmart’s low wages by providing its employees with food stamps, the government is also a prime provider of funds to Walmart through its customers. Meaning that Walmart depends on food stamp recipients as a key consumer base. Now that those benefits are ending Walmart is in a crunch. Perhaps if they spent more time making sure that their employees could survive without needing food-banks, they would understand that pushing for legislation against the working class is not only unethical but harmful for business. People go to work, get paid and buy things. If they don’t have even money for basic needs like food, potential consumers are not going shopping. Walmart is a prime example of how “job creator” initiatives are hurting the economy. Suddenly Walmart is considering a new found support of Federal minimum wage increase.
Bloomberg.com reports, “David Tovar, a company spokesman, said today in a telephone interview. Increasing the minimum wage means that some of the 140 million people who shop at the chain weekly would “now have additional income.”
I guess they’re finally learning how this works. The next time a conservative drones on about “entitlements” and poor people bashing, remind them that Walmart survives on food stamps, tax write offs and subsidies. They’re one of the biggest Welfare Queens in the land.
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