Wal-Mart, we’re told, is the epitome of free enterprise in America — work
hard, be innovative, and achieve efficiencies, and your company will be rewarded
with riches! Oh yes, one more thing: Be sure to load up on government subsidies
along the way.
Good Jobs First, a research center that studies the doling out of public money to corporations, reports that the sprawling Wal-Mart empire has been fueled by the steady injection of more than a billion dollars from taxpayers, including those paid by local businesses that subsequently have been squeezed out of existence by Wal-Mart.
Digging into scattered, often hidden records of state and local governments, the center found 244 cases of giveaways, including construction grants, special tax breaks, and job-training money. The average subsidy to a Wal-Mart store was $2.8 million. Imagine owning an independent pharmacy, hardware store, or grocery and having to compete with a multibillion-dollar giant that is then handed an extra $2.8 million tax-paid advantage over you.
The actual subsidy is much larger, for the center was able to look at only a portion of the 2,900 Wal-Mart stores. Also, the report covers only the direct development subsidies, not counting the huge wage subsidy it gets. Wal-Mart pays at a poverty level and provides no health coverage for most of its workers; instead, it counts on food stamps, emergency departments, and other publicly subsidized services for its workforce.
Oh, tut-tut, sniffs a Wal-Mart PR flack — don’t you know that in 10 years the company has collected more than $52 billion in sales taxes that help finance local governments? Well tut-tut right back — that’s not Wal-Mart’s money, so excuse us if we don’t roll over in gratitude.
To learn more, call Good Jobs First: 202-737-4315.
This article appears in Oct 21-27, 2004.
