customer. They need numerous average folks for a healthy customer base.Anything that endangers the middle class imperils small businesses as well. Yet, we’ve accepted policies that imperil both for several decades now.Whether it’s the debunked
trickle down economics shell game
or thenotion that busting up unions will lead to greater prosperity (also ademonstrable myth), too many of us have supported policies that hurt ourown selves, our families, our community, our small businesses and ouroverall economy. Take the Right to Work [for less] legislation that may well pass this week.Every previous legislature, Republican or Democrat, has defeated this in thepast. They knew RTW produced lower wages ($5,300 less), higher rates of worker injuries, higher work-related death rates (53% higher), lower levels of healthcare coverage (21% lower) and a lower standard of living. Suddenly,those now in power claim this is just the prescription for businesses wantingto come here with more jobs. Even if that were the case (and the evidenceon this is not fully vetted), what kind of jobs would those be? More Walmart-style jobs?Some might say “jobs is jobs.” Here’s what a Walmart economy looks like: 3better paying local jobs killed for every two produced by a new Walmartstore, 2.7% decline in retail employment “in every county they enter,” 10-40% decline in supermarket and other retailers sales when Walmart enters amarket and loss of wages and benefits in the marketplace (southern CAestimates a $2.8 billion loss in wages and benefits from the new Walmarteconomy in that region). Walmart costs taxpayers money from thethousands of associates who make below poverty wages and qualify forMedicaid. Only $43 of money spent at Walmart circulates in the localeconomy while $68 spent at a local business stays local. And, oh by theway, among these and other sad statistics, Walmart acknowledged that they
to pay $2.95 billion in taxes owed for 2009.
Is that a bit likemisplacing your car keys??
Whether it’s Walmart’s or other low wage/low benefit companies seeking tolocate in a state that offers up its workers for servitude the cycle will likelybe the same. Wages fall forcing more shoppers to low cost alternatives thatbring more low cost alternatives into the market driving out locally ownedbusinesses and producing more low wage jobs forcing more shoppers to seekyet lower cost alternatives.