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Walmart - Creating Poverty wherever they go..

Anonymous
Posted by Anonymous
  • 48 Replies

Walmart Admits: 'Our Profits' Depend on 'Their Poverty'

Critics cite irony of annual report filing: 'This is a company that everywhere it goes it creates poverty'

- Lauren McCauley, staff writer

A Penn State study found that in counties where Wal-Mart opens a store, poverty rates are negatively impacted. (Photo: Ian Turton/ Creative Commons/ Flickr)Although a notorious recipient of "corporate welfare," Walmart has now admitted that their massive profits also depend on the funding of food stamps and other public assistance programs.

In their annual report, filed with the Security and Exchange Commission last week, the retail giant lists factors that could potentially harm future profitability. Listed among items such as "economic conditions" and "consumer confidence," the company writes that changes in taxpayer-funded public assistance programs are also a major threat to their bottom line.

The company writes:

Our business operations are subject to numerous risks, factors and uncertainties, domestically and internationally, which are outside our control ... These factors include ... changes in the amount of payments made under the Supplement[al] Nutrition Assistance Plan and other public assistance plans, changes in the eligibility requirements of public assistance plans ...

Walmart, the nation's largest private employer, is notorious for paying poverty wages and coaching employees to take advantage of social programs. In many states, Walmart employees are the largest group of Medicaid recipients.

However, this report is the first public acknowledgement of the chain's reliance on the funding of these programs to sustain a profit.

According to Stacy Mitchell, senior researcher with the Institute for Local Self-Reliance, the irony of their admission is that Walmart "is the company that has done, perhaps, more than any other corporation to push people into poverty."

Citing a Penn State study, Mitchell told Common Dreams that research has proven that "when Walmart opens a store, poverty rates are negatively impacted" and that the more stores that have opened in a particular county, the worse it is. "This is a company that everywhere it goes it creates poverty."

In addition to their own worker's low wages, Mitchell explains that Walmart, because of their enormous size and market power, have "held down wages for the whole sector."

As a retailer that specifically targets a low-income demographic, Mitchell adds that the "insidious genius" of their business model is that "they have so squeezed American workers [...] many feel that their only choice is to shop at Walmart."

The International Business Times reports:

Prior to the earnings report, Walmart Chief Financial Officer Charles Holley said the company didn't anticipate how much the end to such programs as the unemployment benefits extension would affect it. Specifically, reductions to the Supplemental Nutrition Assistance Program that went into effect on Nov. 1, the first day of the company’s fourth quarter, pose a potential concern. The cuts led to a between $1 and $36 reduction in SNAP benefits per household, or up to $460 a year. Congress is debating reinstating the extension to the program and making the benefits retroactive to Nov. 1, something Walmart would clearly consider beneficial to its growth.

Previously, Walmart has joined forces with Big Food labels such as Coca Cola and Kelloggs to lobby the United States Department of Agriculture and Congress against any measures that would restrict SNAP use to healthy food choices. According to an earlier study by Michele Simon at Eat Drink Politics, in just one year, nine Walmart Supercenters in Massachusetts received more than $33 million in SNAP revenues.

Posted by Anonymous on Mar. 30, 2014 at 8:28 AM
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Replies (1-10):
Dzyre1115
by Desiree` on Mar. 30, 2014 at 8:30 AM
1 mom liked this

 Our Federal government does the exact same thing, so what's the difference?

Anonymous
by Anonymous 1 - Original Poster on Mar. 30, 2014 at 8:32 AM

 the feds are enabling walmart to continue the cycle...

Quoting Dzyre1115:

 Our Federal government does the exact same thing, so what's the difference?


Anonymous
by Anonymous 2 on Mar. 30, 2014 at 8:34 AM
Our small town has thrived since Walmart was built. City council works really hard to make sure that small and large businesses can coexist.
Dzyre1115
by Desiree` on Mar. 30, 2014 at 8:34 AM

 But do we have any right to complain since we elected a government that encourages poverty, and welfare use?

Quoting Anonymous:

 the feds are enabling walmart to continue the cycle...

Quoting Dzyre1115:

 Our Federal government does the exact same thing, so what's the difference?

 

 

Anonymous
by Anonymous 1 - Original Poster on Mar. 30, 2014 at 8:35 AM

and i really wonder how many of those workers rely on foodstamps, medicaid and other gov services...

Quoting Anonymous: Our small town has thrived since Walmart was built. City council works really hard to make sure that small and large businesses can coexist.


Anonymous
by Anonymous 1 - Original Poster on Mar. 30, 2014 at 8:35 AM

i didn't elect it

Quoting Dzyre1115:

 But do we have any right to complain since we elected a government that encourages poverty, and welfare use?

Quoting Anonymous:

 the feds are enabling walmart to continue the cycle...

Quoting Dzyre1115:

 Our Federal government does the exact same thing, so what's the difference?


 


Anonymous
by Anonymous 3 on Mar. 30, 2014 at 8:37 AM
2 moms liked this
Of course we have a right to complain. We dont have a magic ball to tell the future to see what these officials are going to do.

That being said I hate Wal-Mart and do my best to not shop there and shop at our local stores.

Quoting Dzyre1115:

 But do we have any right to complain since we elected a government that encourages poverty, and welfare use?


Quoting Anonymous:

 the feds are enabling walmart to continue the cycle...


Quoting Dzyre1115:

 Our Federal government does the exact same thing, so what's the difference?


 


 

Anonymous
by Anonymous 4 on Mar. 30, 2014 at 8:37 AM
We get foodstamps and our child gets Medicaid. Dh works at that piss poor place. We are trying to find him a new job but looks like we will have to move out of state to get him a job

Quoting Anonymous:

and i really wonder how many of those workers rely on foodstamps, medicaid and other gov services...

Quoting Anonymous: Our small town has thrived since Walmart was built. City council works really hard to make sure that small and large businesses can coexist.

Dzyre1115
by Desiree` on Mar. 30, 2014 at 8:39 AM
1 mom liked this

 It's a majority rules government, and we the people, have to go with the majority.....the majority doesn't mind living in poverty, so long as there is the illusion of success.

Quoting Anonymous:

i didn't elect it

Quoting Dzyre1115:

 But do we have any right to complain since we elected a government that encourages poverty, and welfare use?

Quoting Anonymous:

 the feds are enabling walmart to continue the cycle...

Quoting Dzyre1115:

 Our Federal government does the exact same thing, so what's the difference?

 

 

 

 

Anonymous
by Anonymous 3 on Mar. 30, 2014 at 8:39 AM
How has it thrived? Bc there are jobs? Sadly many are probably still on welfare. Also, I would be willing to fo out on a limb and say that Wal-Mart put out a few businesses at least.

Quoting Anonymous: Our small town has thrived since Walmart was built. City council works really hard to make sure that small and large businesses can coexist.
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