[lbo-talk] Hidden subsidies to Wal-Mart

alex lantsberg wideye at earthlink.net
Mon Mar 8 18:25:00 PST 2004


I think the point is that the indirect subsidies serve to undermine other higher wage employers that do provide benefits-check out Ruth Milkman's article at TomPaine.com about the new Safeway contract since she essentially makes that same point Theoretically a progressively financed universal health care system will level the playing field and disallow some employers from shifting their costs onto taxpayers. That's some of the basic reasoning behind SB2, the CA employer based 'play or pay' health care bill.

al -----Original Message----- From: lbo-talk-bounces at lbo-talk.org [mailto:lbo-talk-bounces at lbo-talk.org]On Behalf Of Miles Jackson Sent: Monday, March 08, 2004 6:03 PM To: lbo-talk at lbo-talk.org Subject: Re: [lbo-talk] Hidden subsidies to Wal-Mart

On Mon, 8 Mar 2004, John Lacny wrote:


> Good Jobs First notes here that Wal-Mart workers' children in Georgia
> enroll in PeachCare (the state's low-cost health insurance for
> low-income children) at such a high rate that they outnumber the
> enrolees at the next-highest private sector employer by 14 to 1. GJF
> notes that this is a form of public subsidy to a low-wage employer whose
> workers cannot afford health insurance.

I've heard these kinds of claims before, but I'm not sure I like where this analysis leads: if we actually had a universal health care system, by the logic above, we'd be providing an even bigger "subsidy" to Wal-Mart (and all businesses with employees). Is that such a bad thing?

Miles

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