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Saturday, March 05, 2005

Taxpayers Pay for Wal-Mart's "Low Road"

Of the many ways that Arkansas-based Wal-Mart endangers the public interest, one of the most insidious is how, by paying its workers low wages with almost no benefits, they force tens of thousands of employees to rely on state and federal public assistance programs to make ends meet.

In other words, Wal-Mart -- one of the biggest and most profitable companies in the world -- is forcing taxpayers to underwrite the costs of their business to the tune of billions of dollars.

Good Jobs First, an excellent advocacy group for "high road" development, has released a survey about how many workers and their families are forced onto Medicaid and State Children's Health Insurance Programs in different states to make up for Wal-Mart's dead-end jobs. Some disturbing results from the South:
ALABAMA: The Montgomery Advertiser found in February 2005 that families of Wal-Mart workers are the top dependents on Medicaid. 3,864 children of Wal-Mart employees depend on Medicaid for health insurance. The next highest company, McDonald's, has 1,615 employee's children on the program.

FLORIDA: In December 2004, the Tallahassee Democrat revealed that 50,000 workers and their dependents rely on Medicaid for health insurance. McDonald's was the worst culprit in the Sunshine State, with 1,792 claims filed. Wal-Mart had 756.

GEORGIA: 10,261 children of Wal-Mart workers rely on PeachCare for Kids, the state's program for low-income families, according to a February 2004 report in the Atlanta Journal-Constitution.

TENNESSEE: 25% of Wal-Mart workers in Tennesse are enrolled in TennCare, the state's health plan for the poor and uninsured, according to a January 2005 investigation by the Memphis Commercial Appeal. That's 9,617 employees.

WEST VIRGINIA: The Charleston Sunday Gazette-Mail revealed last December that 452 Wal-Mart workers in the state have children dependent on the State Children's Health Insurance Program, the most of any company.
(Note: this isn't just a Southern thing, of course. The survey also looks at reports out of Connecticut, Massachusetts, Washington, and Wisconsin. And I notice a story out today showing that 845 Wal-Mart employees in Iowa rely on Medicaid for health insurance.)

Most disturbing of all is that Wal-Mart is driving up public assistance caseloads at the very time state lawmakers are demanding sharp cuts in these programs. For example, Tennessee's excellent TennCare program is under assault due to rising costs (in part caused by Wal-Mart and kindred companies), with proposed cuts that could strip thousands of health coverage.

And as if that isn't bad enough, an earlier report by GJF shows that state and local governments have given Wal-Mart subsidiaries over $1 billion in tax breaks and other "incentives" to set up their stores -- money the company clearly doesn't need.

So the public is paying twice -- in direct corporate welfare, and indirect costs from workers driven into poverty -- to subsidize a giant company that's swimming in profits, exploits workers, busts unions, drains community resources, exacerbates urban sprawl, violates human rights abroad, and otherwise violates the public trust.

Where's the "moral values" crowd when you need them?
posted by Chris Kromm at 1:45 PM | Email this post | Post a Comment
13 Comments:
Blogger Morgaine said...

The "Moral Values" crowd are the ones making all the profits. They keep people tired, sick, overworked, underpaid, undereducated and full of hate and fear so they'll vote for the very people taking advantage of them, thinking at least they'll go to heaven when they die.

3/05/2005 10:12 PM  
Anonymous Southern Yankee said...

I agree with the gist of your argument, Morgaine.

But I think it might be better described as the "Moral Values" crowd making a deal with the devil.

Some of them, I'm confident, do this knowingly because they're hypocrites. Folks like Falwell and Robertson, who spend as much time talking about hate as they do about Jesus.

Others, I think, have been taken for a ride because they believe the GOP is the only avenue to having their values represented, because of the way the GOP frames choice and civil rights for gays.

3/06/2005 9:39 AM  
Blogger Mitch said...

Moral values? Moral values? What are you some kind of commie pinko or something? Since when did fair labor practices become a Moral Value?


Now just take your $29 DVD player and shut up.

3/06/2005 10:37 AM  
Blogger VOR said...

Sorry to comment on something unrelated, but I'm trying to get a dialogue going between the religious and non-religious since this largely parallels the gap between Left and Right in this country- if anyone is interested please check out:

http://voicesofreason.info

Thanks,
J.S.

3/06/2005 1:17 PM  
Anonymous Southern Democrat said...

Well to start off "commie pinko" is a bit far fetched a thing to call someone who wants a fair labor market. Communism's labor market was you do what we say for what we want to give you (like food, clothing, a place to live).

Republicans always want to down fair labor, yet they enjoy overtime (if you still qualify for it thanks to Bush), a safe working environment, health care, and a forty hour work week. Those are just a few of the things Labor Unions brought the working class including fair wages representative of your trade. I hear my republican coworkers putting down Unions, OSIA, and the EPA, but without these things people would still be working six or seven days a week for a little change. We would all be working without any form of safety standards. We would all be drinking the sludge from factories that they would just dump into our lakes and rivers.

Do any of you really think corporations and companies give a shit about you or where you live? If you think they do then your as dumb as they hope you are.

Fair Labor walks hand and hand with morals. Is it moral to steal? Is it moral to kill? Is it moral to lie? When you are working in an unfair labor market those are the things you will have to live with.

Although I don't think a Nazi Bastard like you would understand "Moral Values" or know one if it jumped up and bit you in your brainwashed ass.

What is happening in the United States is the whole sale of our country to BIG business. Our fine MORAL President and his MORAL capitol hill roughs are selling us all out to their big business buddies who are close to rewriting the declaration of independence from For the people by the people of the people to For the corporation by the corporation of the corporation.

When they are through we will all wish we were lucky enough to live in a communist country because what is going to rise up from the sludge and lies of today's leaders will be an America ran by BIG Business not the people and if you are paying attention it is fast heading that way. The people are no longer heard only the rustling of the money special interest groups shovel at the politicians is being heard.

Walmart was a huge contributor to the Bush campaign. Walmart has no moral fiber in interviews they brag about how they make money is by paying low and not offering healthcare. Almost everything in the store has made in China on it. If you don't have the connections they will gladly hook you up with someone in China to do you work for you so you can sell your product for what they set your prices at. Sam is doing somersaults in his grave. Walmart use to have a made in America logo as its selling point. So go out and buy your $29.00 piece of Chinese made crap. Cost another fellow American his or her job. Just remember the next job may be your own.

Bush is glad to see that in order to get buy most Americans have to have three jobs "only in America" he says. Only in America do the richest deserve to get a better tax break because they earned that money. Work in a factor and see how hard that money is to earn or work three part time jobs because in order to make money the Walmarts of America can't afford to hire to many full time employees. They may not break a billion next year.

So all you anti-fair labor jerks think about this. Turn down your raises next year ask your employer to stop paying you overtime, providing health care, providing a safe work environment, ask for another dose of lead because you obviously haven't had enough paint chips to eat.

3/10/2005 7:40 PM  
Anonymous Southern Yankee said...

uhhhh... Southern Democrat, that's a really great rant, but you do know that Mitch was just snarking, right?

3/10/2005 8:14 PM  
Anonymous Southern Democrat said...

Nothing “MITCH” had to say was even close to right. The moral values crowd has the standard saying “I voted for values not my pocketbook.” Then this guy tells you all hey take your $29 DVD and forget about how the Walmarts of the world mistreat their workers.

Morals and fair labor are one in the same. That was what “MY little rant” was about. I know how “MORAL” these corporations are and the devil has competition. Serious competition.

Maybe Americans are just to blinded by the never ending pursuit of useless junk they don’t really need to care about being treated fairly by an employer. Or they are just to job scared to stand up for what is right.

It is not right to have to just lie down and be used as a stepping-stone for someone else to get filthy rich. Wal-Mart and others like them makes hundreds of millions a year. To say they can’t afford to create more full time positions with health care and better wages is a flat out lie.

The minimum wage has held for the last five or ten years while everything else has gone up. Gas prices, health care cost, rent, power, …. Everything. Yet minimum wage is stagnant. Workers have the right to be paid a fair wage for a fair days work. I’m not saying they should be paid $15 an hour, but at least enough where at the end of the week they don’t have to chose between medical care, rent, or food.

Open your eyes and see that things are changing in America. The people have lost and the corporations are in control. If you don’t believe me then look at the last two major bills that have been passed. Tort reform and Bankruptcy reform.

In these bills the people are not protected from big business but big business from the people. Corporations and Insurance companies are protected from large cash settlements due to a mistake on their or their clients’ part.

While the rich are allowed to keep their homes when they fill for bankruptcy the poor are not. The credit card industry had no limits placed on how or how much interest they can mysteriously tag on to your debt, making it impossible to pay off. Yet you can no longer seek shelter from them by filling for bankruptcy.

I am not supporting people who make bad credit choices, but it is hypocritical for an administration that has the worst credit record in Americas history to tell its citizens hey you should spend more wisely.

3/14/2005 9:42 PM  
Anonymous Southern Democrat said...

Yea I misspelled file and filed, hey you work with what you got. Unfortunately I got a southern education. If it hadn’t of been for spell check I never would have made it through college.

I'm sure there are more misspelled words. But hey if you’re going to stone me for bad spelling, "let he who is with out a single grammatical error cast the first stone."

3/14/2005 9:50 PM  
Anonymous Southern Yankee said...

Southern Dem,

I wasn't criticizing your earlier comment. It was a great rant. I think I crossed wires with you over the word "rant". For geeks like me, it's a positive statement describing a righteous, emotional speech or post.

And Mitch really was just snarking, I'm sure -- his post was sarcasm.

Not that I regret the confusion, because your reply was another great rant.

3/14/2005 11:14 PM  
Blogger ThomasDodd said...

Late to this, but the Original showed up in a search, and I think it deserves comment.

The issue isn't weather Wal-Mart provides "insurance" or not. The real issue is high health care cost, and how we got there. Employers offer things like insureance and paid time off as BENIFITS for their employies. A benifit is something extra, not required, to convince you to work there.

Lots of the health care cost are related to lawsuits. Medicine is not perfect and neither are doctors. But they are constantly blamed, and the ridiculous awards have led to 1) high insurce rates for the doctors, and 2) doctor performing lots of unnessicary tests, that aren't cheap, in a CYA move. So the patients pay the added cost fopr both the insurance the doctor is required, by law, to have and the extra testes he now feel the need to do to protect himself.

The governement paying for "poor" people's health care as led to higher costs too. With people not paying for the services, they don't do much to maintain their health. The governement sets their payment rates, so the doctors and hospitals much make up the difference somewhere. That means you or me. So now we need "insurance" to offset the extra costs. The insurance companies also limit fees, again raising the price to "uninsured" people. That leads to more people who "need" the government's help, and the cycle continues.

With so few people actually paying for their health care, they get lax. The don't take care of themselves. The start visiting the doctor more often, for less serious issues, and outside of office hours, instead going to the "emergency room", since there percieved cost to them is the same.

I would rather everyone pay for their care, and rely on true charity for the extreme situations. (Once the forced charity of taxation to provide such help is gone, people will be willing to help again, and the private groups are better at meeting the local needs than the governemnt versions) Costs would go down to meet the true market rates, based on what people thought the service/good was worth.

Should I buy the $150 antibiotic or the old $20 one? If it's free (government paid) or the same cost (prescription plan) which would you choose? What if you have to pay the full price? The current government/insurance setting removes that decision from the patient.

Once those issuse are resolved, then most people won't "need" insurance. And they will only want incurance for the major stuff. Like auto-insurance. You don't buy car insurance that covers oil, tires, or brakes. Just the major repairs, and you decuide the out of pocket expense on your own.

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CHRIS KROMM blogs three days a week for Facing South. He is Executive Director of the Institute for Southern Studies and publisher of the Institute’s award-winning magazine, Southern Exposure.

R. NEAL blogs two days a week for Facing South. Based in Knoxville, TN, R. Neal formerly ran the popular blog South Knox Bubba. He is now coordinator of KnoxViews.

SUE STURGIS blogs three days a week for Facing South. The editorial coordinator of the Institute's Gulf Coast Reconstruction Watch website, she is a freelance reporter who lives and works in Raleigh, NC.

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