Welfare Kings

Posted: October 25, 2013 in The Economy, Ugliness American Style
Tags: ,

We’ve all heard stories about “welfare queens” even though there’s little evidence that such a problem exists.  Indeed it’s been proven time and time again that the little gem of a story that Saint Ronnie Raygun used about a welfare queen in Chicago was a lie.  That’s not to say there aren’t any at all.  I found about 3 documented cases since 1974.  Well, if there are about 4% of the U.S. population currently on welfare then that would be around 14 million people.  If we’re only seeing 3 real cases of welfare queens for the last 40 years that’s a frigging awesome success story!

But let’s be serious, shall we?  The actual fraud rate for welfare is about 5% and that includes “oopsies” where money is sent to the wrong person or the wrong amount is sent.  Only about 1% is actually the kind of fraud that Ronnie was talking about…beneficiaries knowingly scheming to get money they don’t have a right to.  So that’s 1%….substantially less than what many private businesses experience.  So, the numbers paint a much brighter picture than conservatives would have you believe.

Which leads me to my next point…who are the true welfare kings and queens?  Turns out you know them.  In fact, you probably see them or interact with them on a daily basis.   The offenders?  Walmart, McDonald’s, Taco Bell, etc, etc.  Don’t believe me?  One report says that based on Medicaid data,

a single 300-person Wal-Mart Supercenter store in Wisconsin likely costs taxpayers at least $904,542 per year

Yes, that’s a million dollars a year….one Walmart store.  There’s over 4,100 Walmart stores in the U.S.  So let’s ballpark that overall figure….that would mean Walmart alone is costing U.S. taxpayers about $3,708,622,200 (or $3.7 billion) in federal benefits to their employees.  What if Walmart paid that out directly in increased salaries to their employees?  Their revenue is over $440 billion annually and their profit was $15.7 billion.  They employ about 1% of the U.S. working population, which means 1.4 million people.   Of that 1.4 million, only 475 thousand people earn over $25,000 a year.

So let’s do some more math.  So that means that 925,000 Walmart U.S. employees make LESS than $25,000 a year.  We know for a fact that their full-time sales associates average $15,576 per year ($8.81 per hour).  If they raised their sales associates salaries up to $25,000 above the poverty level Walmart they would cut their profits down by $8,717,200,000 (or 8.7 billion) leaving them with $7 billion in profit.  Okay, let’s just raise it to $20,000.  That would $4,092,200,000 or $4 billion which would leave them with $11.7 billion in profit.  How much is enough profit?  The problem is it’s never enough.

We pay almost $4 billion every year to help Walmart employees avoid freezing to death and to buy food.  Then the company makes almost $16 billion in profits.  Who is really on welfare?   McDonald’s is in on the scam too.  Watch this video and see what I mean.

Here are some organizations fighting against these giant welfare kings who suck the life out of American workers and taxpayers.

http://forrespect.org/

http://lowpayisnotok.org/7-billion/

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