Poverty Keeps Walmart Atop Fortune 500

[dajoki]

Poverty Keeps Walmart Atop Fortune 500
by Rachel Mulroy April 19, 2010 10:10 AM (PT)
http://uspoverty.change.org/blog/view/poverty_keeps_walmart_atop_fortune_500

As every survivor knows, an abusive relationship is cyclical. The abuser hurts the abused, the abused tries to leave, then returns to the abuser because he is also the provider. The wheel spins again. Similarly, consumers living in poverty fall victim to major corporations which they rely on to meet their needs.

This year, Walmart has replanted its flag at the top of the Fortune 500 list with $14 billion in profits. How is this retail giant thriving when more than 14 million people are out of work? Why is it that the poorer Americans become, the richer Walmart gets? It's a combination of many factors, but in the end it all adds up to one conclusion: Walmart has reined us into an abusive relationship.

I admit I'm guilty when it comes to being an unconscious consumer; I hate the store but just can't stop shopping there. I'd like to leave, but I don't know where to turn to.

As exposed in the film Walmart: The High Cost of Low Prices, the supergiant is notorious for international human rights violations, civil rights violations, a blatant disregard for workers' rights and robbing the American public through tax loopholes and subsidies. The company is guilty of noncompliance with EPA regulations and polluting our environment from coast to coast (and worldwide).

Despite knowing this, millions of consumers living in poverty are stuck in the same rut I am.

I had a friend, who until recently worked as a cashier for the local Walmart. A loyal employee for over a year, she was fired because she was pregnant. The paperwork doesn't reflect that, of course. Now that she's on welfare while looking for something new, where do you suppose she shops?

I know another woman who works in a Walmart store. Almost everything she owns she bought from her employer, with her 10 percent discount because she doesn't get paid enough to shop elsewhere. She is essentially paying Walmart to work there!

I have almost nothing, so I shop at Walmart. This makes me dependent on those low prices, which ultimately makes the Walton family happy and hundreds of thousands of employees, neighbors and "competitors" miserable. I think it's time we stop dumping our cash into the Walmart Empire and start shopping with long-term benefits in mind (environmentally-friendly, family-friendly, et cetera).

Yard sales and consignment shops are good places to find furniture and kids' clothes, and buying secondhand is a great way to have a positive impact on our environment. It's also a good idea to frequent small businesses; when the merchandise goes on sale it's usually a decent markdown.

When you're worried about having enough monthly income to feed your family and pay your bills, you aren't necessarily thinking about the stock boy who can't afford to do the same. I know I certainly haven't taken Walmart employees (overseas factory workers included) into consideration as I should.

But now when I start to think of the $14 billion in profits while I sit in disgust at home with all my Walmart stuff that was bought at the expense of somebody's decent living wage and health insurance, I've come to realize, you get what you pay for. While I enjoy buying movies for $5 and love the idea of $100 dining room sets and $25 DVD players, the concept of short-changing people who struggle just as much as I do doesn't sit well with me.

[Tansy_Gold]

1. Stop shopping. Stop buying junk

If the author of this piece is sitting surrounded by Walmart junk, he's bought stuff he didn't need. Necessities like food and toilet paper don't accumulate; they aren't the cheap plastic sweat-shop and slave-labor produced junk imported from China.

"Shopping" is not a hobby.

If a tee-shirt costs $4 at Walmart and $8 at another retailer, buy half as many and support the non-Walmart.

I've been doing this for 12 years. I don't have a lot of alternatives nearby, but I manage not to shop at Walmart. Not. Ever. I either make do with what I have or I find an alternative.

Too many people find excuses to keep going there -- it's the only store around, can't afford to go elsewhere, yada yada. In most cases they're just excuses to avoid the hard action of doing without, spending a little more, or finding an alternative.

It's sheer laziness, and when people really do have alternatives but won't avail themselves of those alternatives, they have to suffer the consequences.



Tansy Gold, who does not ever set foot in Walmart. Period.

[Kalyke]

12. It's been my experience that you'll end up paying more than $8

for the Walmart T-shirt, anyway. Their clothes are so lousy, they fall apart after a few washings and you have to buy another one.

Might as well go for the better quality 8-buck shirt and save yourself another trip to buy it again.

That said, I haven't set foot in a Walmart in more than eight years - six of which, I was a very poor single mom leaving an abusive and cheating husband who didn't pay child support half the time. You can shop at other places and get deals - try the thrift stores and local farmer's markets.

[Duer 157099]

18. Me too. The thing is, I've hated that store since before I even knew what I know now

That store has simply always rubbed me the wrong way, no matter which one I visited. I've gone to probably 3 or 4 different ones in my life, just because I was intrigued by why it bothered me so much, whether it was just one particular store or the whole chain.

It's the whole chain.

Now I won't even step in one, ever ever ever ever EVER. Before it was because I disliked the store without knowing exactly why; for the past decade after learning what I've learned, I have a good reason for never going in there. EVER.

[SocialistLez]

2. I've slowly cut back on how much I spend there

I try to shop at Kroger for my groceries because they have unionized employees and provide better benefits.

Target isn't any better and I've started shopping there less and less.

Most of the big boxes suck.

I'd gladly support a locally owned business who pays their employees a living wage. Even health insurance isn't necessarily mandatory. Maybe they'll pay for a doctor's visit every once in a while.

I've worked for Wal-Mart. I was fired for some reason. They accused me of stealing but I'm not a thief. My paychecks were $300-400 every two weeks and they accused me of stealing $100. What sense does that make?

My mom has worked for Sam's longer than I've been alive. She'd love to work at Costco where they treat their employees right but they seem to be afraid to step into Wal-Mart's territory (AR).

[madmom]

7. I worked at kroger and yes it is a union shop, it is union in name only. I

made about $4 more per hour working at walmart than at krogers. So even if I did get benefits ( I didn't because I was part time) I would have paid dearly for them. Just like at walmart, there is NO difference!! I got shorter breaks at kroger ( 15-30-15 as opposed to 15-60-15) I was allowed to go off premises with walmart, not kroger, which meant I HAD to buy my lunch from them or bring from home. There are different reasons to hate both, they are equal in their treatment of employees IMO.

[SocialistLez]

20. Hmmm...

My girlfriend tells me the same thing. Both places treat their employees like crap. She often doesn't get breaks or they don't give her a lunch.

They are considering layoffs if profits don't come up so it's another reason I shop there.

[madmom]

22. That's a scare tactic, sales won't come up enough, ever.

[proudohioan]

29. Unfortunately, not all locally owned business' pay a living wage....

or treat their employees right. I learned this sad fact about a year and a half ago, when, due to this economy, I was looking at layoff. I figured that working somewhere was better than collecting UI (didn't want a "gap" in my resume...:banghead: ) and would pay a little better than UI. I figured the same as you, and that since this was a locally owned popular chain discount food and drugs store, they would be at least treat employees decently. Boy, was I wrong!

The store was not only not union, they were actually ANTI-UNION! The pay was minimum wage, and I don't think there were many long time employees that advanced much past that; one woman had been working there for over 15 years; come tax time, she was excited when she received her W-2; she had "finally broken $20,000"! Breaks were limited to one, yes ONE 30 minute lunch per eight hour shift. If I was scheduled to work 7:30-4:00, I would get my "lunch" at 10:30, then spend the next 5 hours standing in one spot (I was a cashier). It was grueling work, not the full-time hours that had been stated when I applied for the job (yeah, the first 2 weeks of the month you will get a full 40 hours, the rest of the month? Lucky to get 24 hours per pay period), nor did I earn the $8.50 per hour stated, either. When I got my first paycheck, I asked the manager about that, and he stated,"You must have 'misunderstood', we never start anyone out higher than minimum wage."

Needless to say, by the time I realized all of this, it was too late; I had already transitioned from the job that had ended right to working this shit cashier job; If I quit (which I finally did, after 9 months), no UI. And UI would have actually paid better....... So much for trying to "do the right thing"!

Wal-mart certainly has lowered more than prices; it has lowered the standard of wages and fair treatment of employees across the board.

[madmom]

32. It certainly is true that local stores treat people differently. Your experience sounds

really close to the way I was treated at kroger. I know I will get flamed for this but walmart paid and treated me MUCH better when I worked there than kroger did. If it weren't for a shoulder injury I sustained I would probably still be working there.:shrug:

[proudohioan]

33. You know, I have also heard that....

from the only 2 people I know that worked at Walmart. This was about 10 years ago, but those 2 stated that they didn't think Walmart was as bad as people made it out to be....:shrug: anyhow, that was their opinion, and since I've never worked there, that's all I have to go on.

I think that maybe the local place that I worked at might have been a better employer 20 some years ago when they first started; I used to shop at that store myself, because it prided itself on being "NE Ohio owned and operated...employing NE Ohioans by the thousands!". I do get the feeling that there are a lot of employers that used to be "good places to work", but shortly after 9/11, it seemed to have changed..... especially with the Bush administration being the way they were. Do you get that same feeling, or is it just me?

:)

[samplegirl]

3. I won't give those pricks

a dime! Use Dollar Stores..........whatever!

[renate]

4. Target has good prices on basic staples

Until I wandered into the food section one day I would never have thought of buying milk and cereal and bread at Target--I'd assumed that the prices were bumped up because of the convenience factor, but actually they're super cheap.

And I couldn't even begin to guess at how much I've saved since switching to a discount grocery store (Winco, in my case, and Cub in the Midwest). I had no idea that the prices would be so much lower; I've always heard that profit margins in grocery stores are already low so I figured the savings would only be a few pennies, but oh, my goodness. I can get a FULL shopping cart for $100 or so. It's not the most relaxing shopping experience--it's crowded and busy--but to save that kind of money--I would guess at least 25%--I'm okay with that.

I sympathize with people whose only access to a discount store is Walmart. I wouldn't ever shop there myself because I have money-saving options in my area, but if people need to eat and don't have the money to shop at a store that doesn't treat its employees or suppliers like crap, I'm certainly not going to criticize.

[Mudoria]

5. Thanks but I'll keep shopping at Wal-Mart

my locally owned businesses charge more and their employees are paid virtually the same as those at Wal-Mart. And with even fewer benefits.

[Ohio Metal]

6. Welcome to Costco. I love you.

[Kalyke]

13. There's no Cost-co in my area.

:(

[renate]

15. nonmembers can buy from them online

There's a 5% surcharge for nonmembers, but that doesn't seem too bad considering they're a nice alternative to Walmart.

[slay]

8. COSTCO "pays workers an average of $17 an hour and covers 90% of health-insurance costs

for both full-timers and part-timers. Yet revenues have grown by 70% in the past five years, and its stock has doubled. In typically blunt language, cofounder and CEO Jim Sinegal makes his case for why "big box" and "progressive" aren't mutually exclusive."

more: http://www.fastcompany.com/magazine/130/thinking-outside-the-big-box.html

If I have to shop at one of these huge store, I ALWAYS choose Costco!

[Lance_Boyle]

9. Costco is a membership warehouse. Their profit comes almost ENTIRELY from dues.

Walmart is a Big-Box retailer. Their profit comes from the difference between what they pay for a product and what they then sell that product for. Comparing Costco to Walmart is just not useful. It's beyond apples and oranges. It's apples and orangutans.

[slay]

10. I'd rather pay my yearly dues at Costco than support Walmart, but you are correct

You may not pay a yearly membership at Walmart - and if your conscience is OK that the "savings" of not having a yearly membership means the workers get paid minimum wage and no health insurance as well as the fact that you are supporting a firmly right-wing company - sure, choose Walmart. Personally I will beg before I shop at that shithole. It's not even really Walmart's fault - it's the fact that we LOVE to save money SO much we will actually shop at that place when every bone in our bodies tells us not to. Mmmmm $$$$$ I wish I could just roll around in it all day! :sarcasm:

[Lance_Boyle]

11. Well, your membership warehouse choice is Costco or Sam's (membership malwart).

I think there are a few others now, too. Like the unfortunately-named BJ's. Your big box retailer choices include malwart, target, and probably some others not familiar to my location. They're just different kinds of stores. I would not go to a membership warehouse to buy a single tube of toothpaste, for instance. And I wouldn't go to a big box retailer to buy a million linear feet of aluminum foil, or ten thousand ziploc bags.

I shop at the most convenient and cost-effective places for the things I need, and I've never once heard my body's bones (or my conscience) tell me it's wrong.

[slay]

14. To each his own - I will provide some reading and viewing materials for those openminded enough

http://walmartsucksorg.blogspot.com/

The True Cost of Things- Why Walmart S.U.C.K.S. by Richard Baynton -- http://www.alternativesmagazine.com/30/baynton.html

Seven Reasons Wal-Mart Sucks -- http://ragingtantrum.com/?p=655

http://www.associatedcontent.com/article/95954/the_problems_with_shopping_at_walmart.html

WAL-MART: The High Cost of Low Price -- http://www.walmartmovie.com/


WalMart-The High Cost of Low Price PART 1 -- http://www.youtube.com/watch?v=uJMYZwL8sPA

People think on such a small scale - what's most convenient for ME, what's best for NOW - not about the long term damage Walmart has done/will do - which is exactly how we got to where Wal-Mart has HUGE profits and puts other stores out of business while operating like a right-wing fundamentalist church.

[madmom]

23. I will not pay for the "privilege" of shopping at costco or sam's club. Why should I have to pay

them to let me shop in their store? If they want my business they will let me shop there with out charging me a fee.

[slay]

24. In theory - I agree. Still, beats Walmart IMO.

:shrug:

[Hannah Bell]

26. yes, better to increase walmart's world everything-monopoly.

[madmom]

31. To each his own, if they want my business, it should be them paying me, not vice versa.

I've said it before, I'll say it again, THEY ARE ALL THE SAME!!!!!.Their main goal is to make money off of you, how ever they can. I WILL NOT pay for the "privilege" of shopping anywhere. I will shop where they have what I want at a price I can afford, nothing more, nothing less, the end.

[Hannah Bell]

39. you pay either way. you choose to ignore the price.

[madmom]

41. No I ignore nothing, I choose to spend my money where I want. Not to bribe some one to

let me shop in their store. How about all these foreign car owners? Do they face the same scorn? Not here on DU, that's a different story. Even if it is a double standard, they are acceptable to many.

[bridgit]

17. We have a CostCo card

[SocialistLez]

21. We don't have one in my area BUT

my mom who has worked for a HORRIBLE big-box retailer for about 20+ years would JUMP at the chance to work there.

[slay]

25. We just got one here a year or two ago

it's nice - we go in on big purchases with other families to buy bulk and save while not having that shit feeling you get when you shop at walmart or sams club. I've asked the employees if working there is as good as I'd read and they all say yes - and not in a "we have to say yes" way, but you can tell they actually like the people they work for! Imagine that!

BTW - love your triple threat minority line in your profile. me, i'm a straight white dude but i am atheist! I know I'm right in being an atheist too.... cause god told me so. :rofl: :hi:

[Gaedel]

30. COSTCO

I hate to be contrarian here since COSTCO has been granted "corporate sainthood" at DU, but i find it very unpleasant to shop at COSTCO. Maybe it is just the management of our local store, but the employees there certainly do not reflect or seem to appreciate that they ware well paid with good benefits. They are surly in manner, slovenly in appearance, and generally give a terrible impression. My wife has a regular circuit of COSTCO-Walmart-Publix for the week's shopping for which I operate the transportation, and i always dread going to COSTCO for the grim experience. I used to hate the Walmart super store as well, but Walmart has recently opened a "Walmart Neighborhood Market" (groceries only) near us that is really quite nice. It is much cleaner than a superstore, seems to attract a more upscale clientele, and the employees seem to be genuinely enthusiastic and friendly (I still won't buy fresh meat there).

[SocialistLez]

36. Every store is different. NT

[cbdo2007]

38. I'll agree with you on this. I always find much more helpful and nicer employees

at Walmart than at Costco, now that I think about it. But the other poster was correct that it probably does differ by store. At Walmart they treat me like a customer, at Costco they treat me like a warehouse item. :)

[Hannah Bell]

40. sure are a lot of walbots at DU. we know why.

[cbdo2007]

35. I can't afford to do very much of my shopping at Costco. Usually it's just for

extravagant items, but my regular every day food/clothes/toiletries/etc are much cheaper elsewhere.

[bridgit]

16. True. But they're closing Sam's Clubs, two in my area...

http://www.bloomberg.com/apps/news?pid=20601103&sid=aMRINlvPnh0E With one of the strangest models - gaming every nickle off every piece of retail merchandise - they have reached a saturation point like Starbucks did. They also stuck it to their own big box concept by developing their 'super stores' sometimes within easy distance to each other. So if people don't need 5 gallons of mayonnaise then off they go the the super store which are setup like huge, a bit more 'down to earth/people-family friendly' Target stores

People do need low prices, I know I'm always looking for a deal. And when people are looking at their last $20 bill and need even simple stuff like toiletries or Ramen or socks...they often find themselves standing in a Walmart

[Hannah Bell]

28. that's their strategy: they open a lot of stores until they drive out the competition, then close

the extra ones once they've "won". the empty stores = tax writeoffs & the customers have to travel further for less selection.

The fact that they're closing stores in any particular area is no indication of any strategic failure. Their business is up 12% this year.

[bridgit]

37. Oh yeah, and I bet they write off negatives on each end going in & coming out...

using population/people to determine their true retail exchange and demographic - that is if they care to that extent. And I am sure that's how their bidness remains up essentially every year. By having taxpayers pay their way in (writing off construction/start-up expenses, securing favorable or no regional tax status that will remain a detriment to locals for decades), during (low wage pushing people into taxpayer based food, health and social services), locking the graveyard shift doors, etc (graveyard...maybe that is the business model), and back out the door writing it all off and leaving a huge-ass eye sore of an empty building that no one will be able to fill for years if ever

WalMart's capitalism really is a scourge in spite of the low price shampoo they're able to offer. WalMart is a pusher, WalMart has no per se brand. And to the extent that they do, it seems reason enough to assert *that* they do

True Value is positioning themselves to start-up their own line of flower & veggie seed. Now will they be scrubbing and culling their own seed having gone to seed? No. But I know people able to certify heirloom & organic in the millions of packs. Does WalMart care to make just the right phone call for their customers? I'm seldom left with that impression. And as dynamic as it is out there with CVS buying Long's, Walgreen's opening up across the streets from Rite Aids, etc, even they brand their own items Walgreen brand cough syrup, CVS brand daily multiples, Rite Aid bottled water oh shit!

Now there is a concept..."Prof. Uncle Sam Walton's Recycled City Water In A Bottle From Your Streets To You With Ginuwine French Bubbles!" :scared:

[shedevil69taz]

19. You really do get what you pay for

not only in the quality that Wal-mart treats its employees but the actual goods themselves. Home furnishings from there are made from low quality wood, fall apart with any kind of regular use, and in general aren't that attractive. They still have more expensive versions of most things in their stores and the prices on those ones are actually USUALLY comparable to most other retailers unless they happen to have a sale going on.

Really the only things I try to get at walmart are things like dish soap, childrens clothes (they are always growing out of shoes, pants and shirts).

But in general most people shop there for the sheer convenience. I have found though that better bargains (including price and quality) on most specific products can still be found most places it just might take some looking to find them.

[Hannah Bell]

27. Over 10% of all retail & food sales in the US = FascistWorld.

and 12% increase in their business this year.

I don't use that appellate loosely, either.

[proudohioan]

34. I couldn't agree with you more! n/t