Study: Wal-Mart Can Afford Low Prices, Higher Wages

[Omaha Steve]

Full story: http://blog.aflcio.org/2006/06/15/study-wal-mart-can-afford-low-prices-higher-wages/

Study: Wal-Mart Can Afford Low Prices, Higher Wages

Wal-Mart, which always boasts about its always low prices, claims it has saved the American consumer $263 billion by expanding its stores. But a new study released today by the nonprofit Economic Policy Institute (EPI) demonstrates Wal-Mart’s always low-wage policy actually does more harm than good to low-income consumers.

In The Wal-Mart Debate: A False Choice Between Prices and Wages, EPI economists Jared Bernstein and Josh Bivens find that Wal-Mart could raise wages and benefits for its non-supervisory staff by 13 percent and still maintain a profit margin nearly 50 percent greater than its top competitor.

The EPI study also disproves a widely cited study commissioned by Wal-Mart that claims U.S. consumers saved a whopping $263 billion because of the giant retailer’s expansion. That study by the consulting firm Global Insight is based on incorrect findings and faulty research methods, according to Bernstein and Bivens.

“Working families need higher wages to keep up with the rising prices of gas and housing,” Bivens says. “Rent or mortgage, utilities, medical services and transportation—these are what take up the largest portion of a family’s income—not goods bought at Wal-Mart.”

As Wal-Mart expands into more urban areas, studies have found it kills competing retailers that typically paid 18 percent more. A University of California, Berkeley study showed that in 2000, total earnings of retail workers nationwide were reduced by $4.7 billion due to Wal-Mart’s presence.

[guidod]

1. Thank you! Thank you! Thank you!

I have been attacked here at DU so many times for saying what you just said. Wal-Mart is helping in destroying the middle class. Thank you! THANK YOU!!! :applause: :hi: :applause:

[inthebrain]

2. Wal Mart is destroying everyone

Except the wealthy 1%.

The make between a 60-80% marjin of profit for every sale they make.

[guidod]

8. And they pay their employees a less

than poverty wage.

[Jed Dilligan]

3. But I like Wal-Mart!

I shop there! Are you saying I'm a Republican? I'm alerting the mods!

:sarcasm:

[guidod]

6. LOL! No I'm not saying you're

a republican. My complaint is with Wal-Mart and the way they treat their employees. Also the way they bankrupt small businesses when they move into a town. :shrug:

[Jed Dilligan]

9. Note sarcasm tag

Reassess, please... I'm with you. ;)

My point is people who make identity politics out of being in the situation of having to buy cheap lousy crap out of big corporations think they are populists but are really sad dupes of the system.

[guidod]

10. I saw the...

...:sarcasm: Did you see my LOL? I think it's time we had a cold one, I'm buying. :toast:

[Jed Dilligan]

11. Cheers

I'm just finishing my first pour off a bomber of Lagunitas IPA... Life's pretty good.

:toast:

[DainBramaged]

5. You ever get attacked pm me I'm there to help

Reich-wing trolls think WalFart is god.

[guidod]

7. WELL SAID! Thanks

[DainBramaged]

4. The fucking Waltons think they can take it with them

they will never follow the Costco Model, never.

[LaPera]

12. They ALL can...In & Out Burger, Costco, even Starbucks, etc.,

they just don't want to,...maximum profits on the backs of the workers....They despise a minimum wage increase...yet, America wants it...Clinton won twice urging a higher min. wage...Knowing the republicans would be against it.