Tax-Subsidies for Wal-Mart?
In an editorial headlined "Socking NYC Shoppers," on Sunday, August 28, the New York Post winds up arguing that New Yorkers can afford to subsidize the medical costs of Wal-Mart's workers. The Post starts out in frontal attack mode, blasting the unions for arguing that the increased taxes New Yorkers will need to pay for Wal-Mart's employees' public assistance will be greater than the amount they may save by shopping at Wal-Mart. "In truth," says the Post, "this is a fight over the price of groceries." Really? Then tell us whether the cost of a health-care subsidy for Wal-Mart is or is not greater than the savings on groceries.
First, the Post concedes that "only a bit more than half of Wal-Mart's workers take the company's health insurance." Then it echoes the Wal-Mart company line: many of the others have already got coverage. Interesting. Then why does Wal-Mart have a lower percentage of covered workers than other employers?
Next, in a tactic that would make logicians blush, the Post attacks not the statistics about Wal-Mart workers' using public assistance, but the people who quoted the statistics. "As for any Wal-Mart workers on public assistance," says the Post, the figures the unions use come exclusively from labor-friendly sources (like the staffers of pro-union House Democrats) and are completely unreliable." Does the Post have any reason for saying the numbers are unreliable? Or is it just slinging mud? I have read some of those reports, as the editors of the Post appearently have not. The statistics I read came from University of California economists and other respectable sources. Similar statistics turn up in other states, including Georgia. Many of Wal-Mart's workers earn so little that they qualify for publicly-subsidized medical treatment. Does the Post deny that? Does it have its own studies to offer? No? Then shame on the New York Post.
Next, the Post makes the remarkable argument that California's taxpayers can afford to subsidize Wal-Mart. "One union-cited study found that California provides roughly $20 million a year in medical care to Wal-Mart employees in that state. That may sound like a lot, but California's Medicaid budget is $30 billion." Thanks a lot, New York Post. I'm sure that the taxpayers of California will like your trivializing their tax bills. Especially if it is for the sake of cheaper paper towels, which the Post seems to think is more important than lowering taxes.
But wait. The Post also thinks New York's taxpayers can afford to subsidize Wal-Mart. "New York," the Post says, "leads the nation in Medicaid spending, at $45 billion a year. Supposedly impoverished Wal-Mart staff would never make up even a hint of a speck of a drop in New York's Medicaid bucket." So now the Post is trivializing New Yorkers' tax bills. Leaving aside the fact that Medicaid is only one form of public assistance, does the Post really think that cheaper groceries are more important than lower taxes? Was that supposed to be what the Post was arguing? I thought it started out to say that the unions' claims were false. Apparently not.
The Post's final Marie Antoinette touch is to say that in "Oakland, Calif., recently, some 11,000 people applied for just 400 Wal-Mart jobs when a new store opened." The Post's conclusion? That maybe there is something wrong with the American economy? No, no. The Post concludes that "some job-hunters don't think Wal-Mart is such a monstrous place." Yes, and some of the poor want to sleep under bridges. What is the point? That people are so desperate they will even work at Wal-Mart?
If the only jobs the once-mighty New York City economy has to offer are jobs at Wal-Mart, that ought to be the subject of the Post's outrage. Where is the will to rebuild New York City's port and industry? That is a fit subject for the Post. Where is the will to strengthen our neighborhood shopping streets, rather than letting Wal-Mart suck them dry? Where is the will to control the use of automobiles, rather than letting Wal-Mart make owning a car a necessity for every New Yorker, exacerbating a problem we should have solved years ago and stranding our old and poor? The Post should be ashamed of using its power to strengthen the Frankenmarts, rather than to strengthen New York City.
