WalMart Admits Profits Depend Heavily On Corporate Welfare

Tyler Durden's picture


Submitted by Michael Krieger of Liberty Blitzkrieg blog,

It appears that Walmart has admitted the potentially severe adverse impact a reduction in food stamp payments could have on its bottom line. This shouldn’t be a surprise to anyone who reads this site, as I have written about this many, many times. Most notably in the very popular post: McDonald’s Math: You Can’t Survive Working for Us.

Well now we have further evidence of this disturbing economic trend straight from the horse’s mouth: Walmart.

The LA Times reports that:

Wal-Mart’s annual report, issued late last week, puts a different spin on things. Buried within the long list of risk factors disclosed to its shareholders–that is, factors “outside our control” that could materially affect financial performance–are these: “changes in the amount of payments made under the Supplement Nutrition Assistance Plan and other public assistance plans, (and) changes in the eligibility requirements of public assistance plans.”


Yes, that says “materially impact.”


Wal-Mart followers say this is the first time the company has made a disclosure like that. 

I’m not sure if that is the case, I think they have mentioned it before, but I’m not sure. Either way…

Wal-Mart says it gets more than half its sales from its grocery departments. Since low-income shoppers are a big part of its clientele, it’s unsurprising that that squealing you hear is coming from its annual report. There’s no indication that Wal-Mart executives stepped up to the plate during the debate in Washington to warn Congress off these cuts in assistance to its customers.


One interesting sidelight of Wal-Mart’s disclosure is that it doesn’t actually discuss how the company benefits from public assistance programs by sticking the U.S. taxpayer with the bill for keeping its workforce fed and clothed.


Who’s paying for Wal-Mart’s addiction to paying its employees less than a living wage? You are.



Having fun yet serfs?

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Wed, 03/26/2014 - 17:15 | 4595670 Boris Alatovkrap
Boris Alatovkrap's picture

Walmart is very very successful USSA company. See, socialism is working!

... until run out of other people money.

Wed, 03/26/2014 - 17:31 | 4595758 Tasty Sandwich
Wed, 03/26/2014 - 18:09 | 4595923 Manthong
Manthong's picture

The old prosperity is gone.

That was when kids and entry level folks did those jobs for a while and then moved on or up.

Nowadays, stock boy or burger flipper is a career and life’s work for the lower and immigrant class that requires a “living wage”.

The college kids today build a nest pineapple (think grenade, not egg) of student debt and drink their way through to a hospitality industry degree.

So, thanks to the libs, we are just stuck growing and nurturing an underclass in a nation that has shipped its real growth overseas.

Of course all of the above is generalizing, but you get the idea.

Oh, and of course the moral and ethical decay of the nation does not help matters at all.

Wed, 03/26/2014 - 18:29 | 4596039 Matt
Matt's picture

Don't forget inflation and run away living costs, with the housing bubble as major contributor. If it wasn't for those problems, $5 an hour for entry level jobs and $15 an hour in a factory would be livable, while still keeping companies competitive with overseas businesses.

Now, you need to pay $25 an hour to flip burgers and $75 an hour to make cars, once you add in payroll taxes, benefits, etc.

Need more pressure on China to implement MaoCare, People's Retirement program, Affordable Housing, etc to keep things competitive.

Thu, 03/27/2014 - 16:12 | 4600077 daveO
daveO's picture

inflation, poverty and moral decline are funded on the back of Fiat(fraudulent money).  

Wed, 03/26/2014 - 19:10 | 4596237 I need Another Beer
I need Another Beer's picture

"The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed, lest Rome become bankrupt. People must again learn to work instead of living on public assistance."


Cicero, 55 BC

Wed, 03/26/2014 - 19:18 | 4596275 I need Another Beer
I need Another Beer's picture

EXCUUUUSEEEE Meeeeee !! Another damn quote

"... every man should endeavor to understand the meaning of subjugation before it is too late.  We can give but a faint idea when we say it means the loss of all we now hold most sacred ... personal property, lands, homesteads, liberty, justice, safety, pride, manhood.  It means that the history of  this heroic struggle will be written by the enemy;  that our  youth will be trained by Northern school teachers; will learn from Northern school books their version of the War, will be impressed by all influences of history and education to regard our gallant dead as traitors, our maimed veterans as fit objects for their derision, it means the crushing of Southern manhood ... to establish sectional superiority and a more centralised form of government, and to deprive us of our rights and liberties."

Gen. Pat Cleburne C.S.A. ... 2 Jan 1864

Wed, 03/26/2014 - 20:58 | 4596676 DirkDiggler11
DirkDiggler11's picture

+ 1MM I Need Another Beer, the next round is on me.

General Cleburne was a brilliant on the field general, and even stronger in his approach to the war. He was dead on when he wrote the South needed to separate itself from the Issue of slavery.

At least I get reminded of his work almost daily when I drive past the Pickett's Mill Battlefield.

Wed, 03/26/2014 - 21:05 | 4596695 SmackDaddy
SmackDaddy's picture

Dont be mad at me asshole.  You guys should have never brought them over in the first place.  Did you really think you could just make em do all your work forever.  Fucking idiots..... you and them...

Wed, 03/26/2014 - 21:41 | 4596866 mofreedom
mofreedom's picture

They sold their own to us.

Thu, 03/27/2014 - 16:22 | 4600108 daveO
daveO's picture

When Fiat runs dry, what will generations of Section 8 and Habitat for Humanity dwellers do? The Democrat 'Useful Idiots' will probably sell themselves into slavery. 

Wed, 03/26/2014 - 20:55 | 4596659 NickVegas
NickVegas's picture

I was liking this line of thinking until I saw the red team, blue team division. Sorry man, I have to discard the whole package at this point. If you can't see and understand divide and conquer, someone with some obvious critical thinking skills, this will enable the charade will go on.

Wed, 03/26/2014 - 17:48 | 4595828 Offthebeach
Offthebeach's picture

The USA should just be change to, The EBT.

Wed, 03/26/2014 - 19:26 | 4596314 KickIce
KickIce's picture

IMO, we ran out of other people's money long ago.  If you eliminate the money from entitlements, government employees and companies that are classified as private but make their living on the picture becomes much more dire.  CNTL-P is the only thing keeping the USS Ponzi afloat.

Wed, 03/26/2014 - 19:45 | 4596406 TinF0ilHat
TinF0ilHat's picture

They ran out of my money, I don't fucking shop there. 

Wed, 03/26/2014 - 17:21 | 4595688 lordylord
lordylord's picture

When I explain that government shouldn't be in the business of charity, libtards always retort, "Well what about corporate welfare???"  As a libertarian, I say get rid of state controlled social welfare AND the corporate welfare.  Libtards justify stealing money from the tax payer for social issues because according to them, corporations do it too.  What a bunch of fools.


Wed, 03/26/2014 - 17:25 | 4595724 McMolotov
McMolotov's picture

WalMart Admits Profits Depend Heavily On Corporate Welfare

WalMart Admits It's A Fascist Soup Kitchen

Wed, 03/26/2014 - 17:32 | 4595764 Boris Alatovkrap
Boris Alatovkrap's picture

No, McDonald is soup kitchen, Walmart is homeless shelter. No soup for you!

Wed, 03/26/2014 - 17:26 | 4595728 IdiocracyIsAlre...
IdiocracyIsAlreadyHere's picture

Downvote solely for the use of the stupid term "libtard".  You are not in 5th grade on the playground anymore, and as a reader of ZH you should have evolved past the faux left/right red/blue divide by now.

Wed, 03/26/2014 - 17:36 | 4595771 lordylord
lordylord's picture

Downvoted because of your silly assumption.  I don't recognize any major differneces in the two parties.  However, there are superficial differences.  And in many instances, they meet halfway to completely fuck us all over.  So screw off pal.

Wed, 03/26/2014 - 17:38 | 4595794 Boris Alatovkrap
Boris Alatovkrap's picture

Boris is suggest more descriptive term for USSA political party of two:

Republigoon - politician is pretend to have moral principal but is check at door in lust for power


Democracker - politician is pretend to care about citizenry but is only use wacko insane argument to satisfy lust for power

Wed, 03/26/2014 - 17:40 | 4595804 NotApplicable
NotApplicable's picture

The term "mafia" is more than adequate.

Wed, 03/26/2014 - 18:37 | 4596066 Deathrips
Deathrips's picture


I laugh...and think you are correct.


What do they call crony statists in Russia? I really dont know.


Here they call the gangs...bloods and crips. The people jump around like they are 8 year olds with ADD on tweak supporting the taking away of their liberties by either mafia. For some reason, they dont like personal responsibility.




When you are independent from the system, the real villain denigrates you, resulting in waco or ruby ridge, etc.



Sorry..i know. My russians terrible. 



Wed, 03/26/2014 - 18:41 | 4596086 CrazyCooter
CrazyCooter's picture

I recently settled on the term "ballot monkey" to describe congress and such.



Wed, 03/26/2014 - 17:40 | 4595801 NotApplicable
NotApplicable's picture

An assumption based upon the evidence at hand is hardly silly. I think the point is that you shouldn't use the barbed words of either side if you do not support them, as it cannot be helped but to be seen as a bias (or do you believe we all are clairvoyant?).


Wed, 03/26/2014 - 17:49 | 4595829 lordylord
lordylord's picture

RINOs don't support social welfare.  Libtards do.  Therefore I did not include RINOs in my statement regarding social welfare.  No need to be clairvoyant.  Just use your brain a little. Stop picking a pointless fight with someone who obviously has similar beliefs as you  just because they didn't equally trash both parties.  "Kthxbye"

Wed, 03/26/2014 - 17:54 | 4595852 NotApplicable
NotApplicable's picture

I'm sorry, how was it obvious again?

Oh, and who's picking a fight?

Do you always get this wound up on the internets?

I mean, think about it. Someone saw you use the word libtard, and you get all defensive claiming it's their fault when they call you on it.


Wed, 03/26/2014 - 17:57 | 4595864 lordylord
lordylord's picture

If I say that I hate Apples, that must mean I LOVE oranges.  Right?  You make excuses like the last guy makes assumptions.

Wed, 03/26/2014 - 18:01 | 4595887 NotApplicable
NotApplicable's picture

I take it you're wholly unaware of the polarization of politics, then?

Whatever, Mr. Cannot See Anyone Else's Point Because You Didn't Appreciate The Label.

Wed, 03/26/2014 - 18:08 | 4595908 lordylord
lordylord's picture

Fine.  If I say I hate democrats on the issue of gun control for example, that means I love republicans?  His assumption was made using that EXACT reasoning.  He obviously agreed with my comment.  Why trash it over something insignificant or a silly assumption that I play the left-right game?

Wed, 03/26/2014 - 18:20 | 4595980 NotApplicable
NotApplicable's picture

Sure, it's the same reasoning. Thing is, this example uses appropriate labels rather than loaded buzzwords used by the lefty-righty zealots. THAT is the only point I've been trying to make with you.

And yes, some people will still make that assumption even with the appropriate labels. However, it is far less likely than when using weaponized words.

Why did I engage you over it? Because you acted like a dick in your initial response, when it was not warranted. You told someone to "screw off" all because you chose to use a loaded word then deny it as a legitimate basis for someone else's observation.

Oh, and I didn't downvote any of your posts.

Wed, 03/26/2014 - 19:17 | 4596271 lordylord
lordylord's picture

Welcome to the internet.

Thu, 03/27/2014 - 05:26 | 4597663 Serenity Now
Serenity Now's picture

You didn't get the libtard memo that only libtards are allowed to use derogatory words towards others.  ;)

Wed, 03/26/2014 - 18:19 | 4595982 juslen
juslen's picture

You haven't graduated to libertarian yet, you are still a recovering conservative/Republican.

Thu, 03/27/2014 - 05:26 | 4597667 Serenity Now
Serenity Now's picture

Ha, spoken like a true liberal.

Wed, 03/26/2014 - 17:34 | 4595774 Boris Alatovkrap
Boris Alatovkrap's picture

Boris is not speaking of english language, but is quick easy understand term of "libtard" - is liberal enjoy frolic in dancing tight, no? Why is hate on woman active wear!?

Wed, 03/26/2014 - 19:21 | 4596291 besnook
besnook's picture

especillay the see through kind on the right derrire, not to mention the camel toe feature.

Thu, 03/27/2014 - 16:26 | 4600127 daveO
daveO's picture

All the 'Libtards' I encounter have a gov. paying job. Usually school teachers. They get their paychecks from Big Bro.

Wed, 03/26/2014 - 17:15 | 4595666 NotApplicable
NotApplicable's picture

I'm no fan of Wal-Mart, but this shit about a living wage is a display of ignorance.

Is this guy really too thick to understand that the real problem is the destruction of the currency?

Oh, and my favorite WM fact? They too want a higher minimum wage as it will hurt their "Mom and Pop" competition.

Wed, 03/26/2014 - 17:16 | 4595681 alangreedspank
alangreedspank's picture

Yeah, there are myriad government policies that result in higher prices. Let's look at those first before.

Wed, 03/26/2014 - 17:19 | 4595699 NotApplicable
NotApplicable's picture

Like say, the genocide that is ethanol-induced corn riots?

I boycott every ethanol welfare queen that I know about.

Wed, 03/26/2014 - 17:57 | 4595873 Greenskeeper_Carl
Greenskeeper_Carl's picture

who are these ethanol welfare queens you speak of? Id seriously like to know, no sarcasm, cuz that whole situation infuriates me

Wed, 03/26/2014 - 18:06 | 4595906 NotApplicable
NotApplicable's picture

MFA Oil and Archer Daniels Midland come to mind in the "political heavyweight" category.

Here's a list of producers (all of which receive a $0.50 per gallon subsidy, AFAIK).

And of course, the lobbyists.

Wed, 03/26/2014 - 22:58 | 4597144 TheReplacement
TheReplacement's picture

He might be referring to anyone who benefits from subsidies while producing it.

Wed, 03/26/2014 - 17:19 | 4595697 SubjectivObject
SubjectivObject's picture

So, I should expect that with a stronger dollar that the income disparity between wallmart workers and its ownership will materially decrease.

Wed, 03/26/2014 - 17:15 | 4595669 lasvegaspersona
lasvegaspersona's picture

When the employee's welfare is dependent upon a corporation we have Fascism. 

The problem is not Walmart but an economy in which employees have no other options.

Wed, 03/26/2014 - 17:20 | 4595700 ebworthen
ebworthen's picture


Wed, 03/26/2014 - 17:28 | 4595740 GeorgeHayduke
GeorgeHayduke's picture

The entire system is not what we have be told/taught it was. Some people are better at dealing with that and moving on to living outside of that system as much as they can. Others will not allow the reality to penetrate their beliefs and will spend countless hours blaming welfare queens and the usual suspects because it's easier.

The system has become a lie at nearly every level.

Wed, 03/26/2014 - 17:29 | 4595746 booboo
booboo's picture

And when a corp. welfare depends on government we have....?
Abe Lincoln was a mediocre lawyer and lobbyist, the reason he is worshipped in DC and hailed in history books is because he above all perfected crony capitalism between bouts of boot stomping the bill of rights.

Wed, 03/26/2014 - 22:20 | 4597013 NickVegas
NickVegas's picture

Understanding the true history of Lincoln was an epiphany for me. It brought down a lot of curtains, and exposed the lies that pass for schooling in our society. My understanding is Lincoln was hated by both the South and the North, and he was working towards expatriating every black in the country when someone ended his run with a bullet in the head. Doesn't really jibe with what I was taught when I was gullible schoolboy. Fuck, I still am at some level. There is still a part of me that wants to believe.

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