Tuesday, August 12, 2008

WAL-MART: The High Cost of Low Price

Delilah and I watched a movie over the course of a couple days. (Because we were so tired we had to turn it off and go to bed). WAL-MART: The High Cost of Low Price is a thought provoking movie. I suggest that everyone watch this movie. Take a look at the following:

Your tax dollars pay for Wal-Mart's greed

  • The estimated total amount of federal assistance for which Wal-Mart employees were eligible in 2004 was $2.5 billion. [The Hidden Price We All Pay For Wal-Mart, A Report By The Democratic Staff Of The Committee On Education And The Workforce, 2/16/04]
  • One 200-employee Wal-Mart store may cost federal taxpayers $420,750 per year. This cost comes from the following, on average:
    • $36,000 a year for free and reduced lunches for just 50 qualifying Wal-Mart families.
    • $42,000 a year for low-income housing assistance.
    • $125,000 a year for federal tax credits and deductions for low-income families.
    • $100,000 a year for the additional expenses for programs for students.
    • $108,000 a year for the additional federal health care costs of moving into state children's health insurance programs (S-CHIP)
    • $9,750 a year for the additional costs for low income energy assistance.
    [The Hidden Price We All Pay For Wal-Mart, A Report By The Democratic Staff Of The Committee On Education And The Workforce, 2/16/04]

Health care subsidies compared to executive compensation

  • Excluding his salary of $1.2 million, in 2004 Wal-Mart CEO Lee Scott made around $22 million in bonuses, stock awards, and stock options in 2004.
  • This $22 million could reimburse taxpayers in 3 states where Wal-Mart topped the list of users of state-sponsored health care programs, covering more than 15,000 Wal-Mart employees and dependents. [Wal-Mart Proxy Statement and News Articles GA, CT, AL].

Your tax dollars subsidize Wal-Mart's growth

  • The first ever national report on Wal-Mart subsidies documented at least $1 billion in subsidies from state and local governments.
  • A Wal-Mart official stated that "it is common" for the company to request subsidies "in about one-third of all [retail] projects." This would suggest that over a thousand Wal-Mart stores have been subsidized. ["Shopping For Subsidies: How Wal-Mart Uses Taxpayer Money to Finance Its Never-Ending Growth," Good Job First, May 2004]
The above was taken from http://wakeupwalmart.com/facts/#taxpayers

Please watch the following clips.

I don't think I'll be buying indoor lighting from Wal-Mart.


Tim Appleton (Applehead) said...

I wonder how many other companies take advantage of the government as well as Wal-Mart.

Jake said...

I can't imagine any other companies the size of Wal-Mart taking advantage.

Babette said...

I've seen a very good documentary about Walmart. It certainly didn't paint a pretty picture about the company and it's executives. I stopped shopping at that store from then on.

Mrs. Mecomber said...

I wonder why there is no clarion call to end coporate welfare? So manhy are focused on attacking WalMart, when really it is Big Government that should be attacked.

Anonymous said...

There are two sides to every story! How about the tremendous good they have done? I have polticians giving slanted views that too many ignorant people swallow like candy! I agree that it is a problem of government and not the corporations. The last time I heard we, supposedly, are a system of free enterprise. There are few corporations that would not take available of available "incentive" programs. Heck, I don't know of many individuals who would not take advantage of entitlement programs whether they need it or not!