Walmart Enjoying 6.2 billion in subsidies

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Chiropteran

Diamond Member
Nov 14, 2003
9,811
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I would say yes, but not nearly as much. Making $2 billion less in total revenue will equate to them paying less in taxes, thus it is possible they would still make a profit. However, it would be considerably lower.

You guys should also account for the fact that it cost Costco money to produce the membership cards, they pay employees to handle new members and lost cards and such, they wouldn't need a greeter at the entrance checking cards, etc.

In a theoretical world where Costco doesn't require a membership, it wouldn't have those expenses.
 

Oldgamer

Diamond Member
Jan 15, 2013
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This! Since when does the most unskilled of unskilled labor provide wages that are high?

Also, Walmart isn't a charity. They exist to make profits. That it is. If Walmart pays their workers, which there are no shortage of right now, more, they either raise prices or take a profit it. Guess which one is more likely? And, then people will cry about the prices and Walmart leading the march against the middle class!

There was a time that working a minimum wage did in fact support a person or their family (albeit modestly). This would have been in the 70's and 80's. But the min wage has not kept up with the pace of inflation, and over all worker wages including those making above min. wage have fallen and stagnated. I imagine most of you were born in the 80's and late 70's so you may be too young to know this.
 

Mursilis

Diamond Member
Mar 11, 2001
7,756
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I'm against government handouts for a corporation that is making plenty of profit. That doesn't mean that there shouldn't ever be some sort of government assistance for some people in some situations.

What's "plenty" of profit? And what subsidies are going directly from gov't to Wal-mart?
 

Mursilis

Diamond Member
Mar 11, 2001
7,756
11
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There was a time that working a minimum wage did in fact support a person or their family (albeit modestly). This would have been in the 70's and 80's. But the min wage has not kept up with the pace of inflation, and over all worker wages including those making above min. wage have fallen and stagnated. I imagine most of you were born in the 80's and late 70's so you may be too young to know this.

Actual facts:


snapshot-12-03-2013-2.png


Looks like the minimum wage hasn't been enough to keep a family of 4 out of poverty for quite some time.
 

Oldgamer

Diamond Member
Jan 15, 2013
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Actual facts:


snapshot-12-03-2013-2.png


Looks like the minimum wage hasn't been enough to keep a family of 4 out of poverty for quite some time.

You are not taking into account that products and housing and rent etc. were much lower in cost many many years ago. As I said, min. wage has not kept pace with inflation.
 

blankslate

Diamond Member
Jun 16, 2008
8,598
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As is Walmart's right....

Corporations are people my friend what part of that do you not understand?


....
 

smackababy

Lifer
Oct 30, 2008
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You guys should also account for the fact that it cost Costco money to produce the membership cards, they pay employees to handle new members and lost cards and such, they wouldn't need a greeter at the entrance checking cards, etc.

In a theoretical world where Costco doesn't require a membership, it wouldn't have those expenses.

I find it extremely hard to believe the cost of maintaining the membership of Costco is anywhere near the cost of membership.
 

unokitty

Diamond Member
Jan 5, 2012
3,346
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Haven't been inside a Walmart in years. No big philosophical reason. Just don't care for the experience.

But regarding government subsidies. My perception is that those laws are written by Congress not Walmart. And Walmart is hardly alone in its utilization... For example:

Other large retail chains have been the focus of similar reports in recent months. In October, two studies released to coincide showed that American fast food industry outsourced a combined $7 billion in annual labor costs to taxpayers. McDonald's MCD -0.33% alone accounted for $1.2 billion of that outlay.

Yum Brands came in at a distant number two, with its Pizza Hut, Taco Bell and KFC subsidiaries costing $648 million in benefits programs for workers each year.

If you don't like the way a company operates, you don't have to be one of their customers...

You don't have to shop at Wallmart. You don't have to eat at McDonald's, or Pizza Hut, or Taco Bell, or KFC... or any other company that doesn't meet your Social Justice Standards...

Best of luck with that!
Uno
 

nehalem256

Lifer
Apr 13, 2012
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You guys should also account for the fact that it cost Costco money to produce the membership cards, they pay employees to handle new members and lost cards and such, they wouldn't need a greeter at the entrance checking cards, etc.

In a theoretical world where Costco doesn't require a membership, it wouldn't have those expenses.

Because Walmart certainly doesn't have greeters :D
 

Matt1970

Lifer
Mar 19, 2007
12,320
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You can look at their SEC filings and pretty much estimate exactly what they would have made. They made about $2.7 billion in profits with about $2 billion in membership fees. They also paid a corporate income tax rate of about 35%.

Minus the membership fees they would have paid about $245 million in income taxes and made about $500 million in profit. Unless you're paying more than 100% in income taxes, it's not possible for income taxes to take you from a profit to a loss.

What I saw said $1.7 Billion in profit with $2 Billion coming from membership fees membership fees.
 

Matt1970

Lifer
Mar 19, 2007
12,320
3
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Well then I expect a $7/hr raise to reflect how much more work I do than someone who earns the minimum wage.

And that's exactly what has happened every time. Tada, inflation. Otherwise Min Wage would have caught up with every industry's pay rate a long time ago and we would all be making the same.
 

fskimospy

Elite Member
Mar 10, 2006
84,348
48,610
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What I saw said $1.7 Billion in profit with $2 Billion coming from membership fees membership fees.

Nehalem didn't understand the figures he was linking (as usual) and you followed him.

It's not my fault that you didn't read the SEC filings that I linked, I even gave the page number. Why you are so intent on clinging to an argument that has been undeniably proven false is beyond me. The fact that you tried to make some comment about 'liberal math' in doing so is pretty funny, though.
 

BoberFett

Lifer
Oct 9, 1999
37,563
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I don't know, 3.5% profit margin doesn't seem out of line. People like bshole would be screaming and wanting to kill Republicans if his 401k was earning a measly 3.5%.