Study concludes taxpayers subsidize Wal-Mart workers By MICHAEL LIEDTKE, AP, redlandsdailyfacts
UC Berkeley's study is based on the premise that Wal-Mart's paltry pay scale forces the retailer's workers to supplement their incomes with Medicaid, food stamps and other taxpayer-backed assistance programs at an unusually high rate.
California taxpayers contribute an average of $1,952 per Wal-Mart worker … 39 percent more than the average public assistance cost of $1,401 per worker at other large retailers with at least 1,000 employees, the study concluded.
"People understand the benefits of Wal-Mart … they have lower prices,'' said Arindrajit Dube, a research economist who co-authored the study. `"What might not be obvious is those low prices are fed by taxpayer-funded compensation.''