Hooray for Walmart

Now that he’s Governor and has new friends pay his expenses, former Walmart shopper Dan Malloy encourages higher prices for the poor

Retail is in the news because we’ve moved into the herd psychology/madness of the Christmas season and, naturally, the healthcare workers (???!!!) union is using this time of media attention to picket Walmart stores to demand that the workers be unionized. Just as unexpectedly, the media goes right along with this story line and gives the union free coverage, all in favor of the supposed rights of down trodden workers who, for some obscure reason, are too stupid to understand the benefits union membership alongside bedpan-emptyers and floor moppers could bring them.

Here’s the real story, courtesy of Peter Suderman:

1. Walmart’s customer base is heavily concentrated in the bottom income quintile, which spends heavily on food.

2.The bottom income quintile spends about 25 percent of income on food compared to just 3.5 percent for the top quintile.

3.So the benefits of Walmart’s substantially lower prices to the lowest earning cohort are huge, especially on food.

4. Obama adviser Jason Furman has estimated the welfare boost of Walmart’s low food prices alone is about $50b a year.

5.Walmart’s wages are about average for retail. Not amazing. But not the worst either.

6. Paying Walmart’s workers more would mean the money has to come from somewhere. But where?

7. Erase the Walmart CEO’s entire salary, and you can raise average hourly wages by just a penny or so.

9. Raise prices to pay for increased wages and you cut into the store’s huge low-price benefits for the poor. It’s regressive. [like all modern day liberal policies - Ed]

10. But what about Costco? They pay more, right? Yes, but it’s a different, smaller market.
11. Walmart’s average customer earns roughly $35k. Costco’s average customer earns about $75k.
12. Costco only has about half as many employees as Walmart. What would happen if Walmart adopted a Costco model and shrank to Costco size?

17. As for Walmart workers getting health benefits thru Medicaid, that’s due in part to a policy liberals argued for: wapo.st/axXXNE

UPDATE: What I said, but expressed in transitive logic: Liberals hate Walmart>> Walmart helps the poor=Liberals hate the poor.

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One response to “Hooray for Walmart

  1. Balzac

    The unions are dysfunctional, attacking Walmart, and thereby damaging the middle/lower class. How about at home in Greenwich? The Nathaniel Witherell is seeking $2.4 milion in additional capital, bringing their renovation project cost to $26.2 million, all of which is likely to become a taxpayer burden. In addition, they project that at least another $20.4 million in subsidies for future annual losses will be required of Greenwich taxpayers. Who does all this spending benefit? At 202 patient beds turning over every 18 months, that’s about 135 new patients a year. However at 283 unionized employees with well-above-market pay and benefits, of whom 174 are the Teamsters (in health care!), it’s easy to see who the real beneficiaries are.

    Government was designed to serve the citizens. Today government delivers its real benefits to unionized municipal employees.

    Taxpayers? Bah! Suckers………….