American Elephants


The Painful Truth About Wal-Mart! by The Elephant's Child

The Left has a remarkably long list of things they hate, but Wal-Mart is right up there close to the top. I’ve never been sure quite why. They are “Big Box Retailers”, they go into small towns and drive out all those mom-and-pop stores out of business, and destroy good paying jobs. They drive down wages when they invade a town. Wal-Mart wages are humiliating and force employees to use food stamps, Medicaid and other forms of welfare. And you’ve probably seen the photos of the “Wall-Mart people,” poorly dressed people, fat people — just not our kind.

Researchers at Stanford and University of Michigan business schools looked into the facts about Wal-Mart.  When they crunched the numbers they found that wages are much higher at the big Box stores, and are much higher than at the mom-and-pop stores.Worker pay rises “markedly,” says Investors, “as the size of the company or the size of the store increases.”

Worker pay, in fact, rises “markedly” as the size of the company or the size of the store increases. Those with some college education, the researchers found, make 36% more at a Wal-Mart-size megastore than one employing fewer than 10 workers. Those with just a high school education do 26% better.

A paper published by the National Bureau of Economic Research also found that workers who move from a corner store to a megastore do better financially. Someone with a high school education will typically get a pay boost of 19% by making the switch.

What’s more, big box retailers offer far more opportunities for advancement than do small ones, with pay supervisors and managers especially advancing.

For those who think Wal-Mart pays “humiliating” wages, the average hourly pay for a cashier is $8.48, which is 17% higher than the minimum wage, and is just pennies less than what the average barista makes at Starbucks, the researchers found. Assistant managers at Wal-Mart make about $10,000 more a year, on average, than those at Starbucks.

A number of years ago, the big complaint was that Wal-Mart was helping their workers to get food stamps, which proved just how awful Wal-Mart was. This was during the Bush administration, and Wal-Mart was quite involved with the “welfare to work” program. To make it easier for new workers to manage the transition from welfare to a job, companies participating in the program were required by the government to help the new workers to get food stamps. Sometimes you just can’t please the Left, no matter what you do.

Some cities have tried to prevent Wal-Mart from going into areas where they might serve less affluent communities, under the illusion that Wal-Mart would take advantage of the poor and unemployed, thus depriving them of good jobs and the opportunity to save on merchandise.

Wal-Mart has enormous buying power, and buying in large quantity means cheaper prices. There are more jobs, higher pay and lower prices for customers. We shouldn’t be surprised that liberal elites hate Wal-Mart.

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