Wal-Mart’s CFO practically admits that the company largely benefits at the expense of taxpayers
January 31, 2014
Wal-Mart announced today that cuts in a federal food stamp program as well as record cold temperatures hurt its fourth quarter profits.
After previously reporting “relatively flat” sales for the quarter, Wal-Mart Stores Inc. now says that sales for its namesake store and its Sam’s Club locations would be “slightly negative” for the November-January quarter, according to Agence France-Presse.
Wal-Mart’s Chief Financial Officer, Charles Holley, blamed the revised forecast on deeper-than-expected cuts to the U.S. Supplemental Nutrition Assistance Program (SNAP) and the extreme cold weather occurring in the past month.
On Nov. 1, the federal government cut $5 billion from the SNAP program due to a planned stimulus withdrawal, which resulted in an average loss of $36 a month for each of the almost 50 million Americans on the program, including many of Wal-Mart’s own employees.
Taxpayers are subsidizing Wal-Mart through an endless cycle of purchases made through welfare benefits and public assistance given to supplement its workers’ low wages.
A study released last year found that nearly $1 million in public assistance a year went to 300 employees at just one Wal-Mart Supercenter in Wisconsin.
Employees at another Wal-Mart in Ohio were asked this past Thanksgiving to donate food items for their co-workers in need so they could also enjoy a Thanksgiving dinner.
“This is a perfect example that shows how the quality of the jobs in this country has gone down the toilet,” Michael Snyder wrote on the subject.
In total, the majority of Wal-Mart’s hourly workers make less than $25,000 a year.
The historic wave of cold weather that also affected Wal-Mart’s sales shattered low temperature records across the country.
Most recently, a rare winter storm in Atlanta, Ga. left drivers stranded in their vehicles on the freeway for over 12 hours.
The White House dubiously claimed that this historic freeze was due to “global warming.”