You raise a valid point. If the government didn’t provide all that assistance with my tax dollars, the workers probably wouldn’t be so willing to work at Walmart for those wages, and Walmart would probably have to raise their wages and prices.
But that still doesn’t make it Walmart’s problem . If Walmart raises wages and benefits, they will be less competitive, and will have to lay off workers. Those workers will be on full government assistance.
It’s not just WalMart that underpays and relies on tax payers to support their employees. You say if WalMart raises their prices they will not be competitive...yet there are companies that do in fact provide living wages and benefit packages that keep their employees off state/fed assistance programs.
“Data published by the state of Massachusetts reveal that Walmart has 4,327 employees — approximately one-quarter of its workforce — enrolled in the state’s Medicaid program or one of two other publicly subsidized health insurance programs. Insuring these employees and their dependents costs taxpayers $14.6 million a year. Target has an even larger share — more than one-third of its Massachusetts workforce, or 2,610 people — enrolled.”
Source:
http://www.ilsr.org/chains-walmart-foods-free-ride-taxpayers-expense-responsible-small-businesses/
My point is that taxpayers are supporting WalMart’s ability to offer low wages. Yes, there are people who need jobs and will jump at the chance to have a job. BUT...these same folks who are starting out will still require assistance from the state to eat and for their healthcare.
For those who say it will lead to fewer jobs...that not entirely the reality at retail service establishments. If lines are long or shelves are empty due to not enough help...guess what...folks will shop where they can actually buy what they want when they want it.
In some places...there may not be a lot options on where to shop. But it’s also true that some one may see an opportunity and decide to open up shop. The thing about WalMart that I’ve seen, are more and more businesses have figured out how to successfully compete against WalMart AND have enough business to be profitable. (and offer good wages and solid benefits).
Based on my experience... one way to go up against WalMart is to have very good customer service, reasonable prices and excellent in stock conditions. It also doesn’t hurt to have an employee base that cares about doing a good job and a management staff that realizes the importance of playing at a higher level.