The Wal-Mart Economic Equation

Wal-Mart spreads like a disease gone mad and it's only governed by one thing:  so long as Wal-Mart gives the state more in sales tax on products than it takes through benefits (e.g. Food Stamps, etc) for underpaid workers, the state will never have a problem with anything Wal-Mart does.

The state also benefits strongly from taxation of Wal-Mart workers even though they are paid minimally for the services.  Even though these workers have full-time jobs and do jobs other people cannot do or are unwilling to do, Wal-Mart is one of the strongest opponents to an increase in the minimum wage.

The discussion of minimum wage is secondary because the state likely makes enough on sales tax on products sold at Wal-Mart that it doesn't care what the Waltons bleed off the workers.  If the minimum wage goes up then the state draws more money from taxing it but the Waltons scream like pigs.  If it stays the same, the state doesn't care because it makes bank from the sales tax anyway.


Discussion of minimum wage is important as a short-term consideration but it falls far short of the problem of why should sales tax exist at all.  Why should the consumer be punished in this way for investing in the economy either by obtaining the foods needed to stay healthy and productive or through buying products which results in stimulation of business and jobs elsewhere.

Consumption is a fundamental requirement of capitalism and yet consumers are punished in this way for doing it.  The state's response is generally simplistic insofar as, well, we couldn't think up a better way to handle appropriate taxation for the ongoing support of the state.  To that we reply, consider getting better accountants, some who actually know what they are doing this time (i.e. other than plundering the people).