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The video below, released this week by the service employees’ union, shows a concrete example of how private corporations that pay poverty wages profit by imposing part of their labor costs on the rest of us.[/ex]
In our society, people like Nancy face a significant degree of stigma for accepting public benefits, but the real “welfare queens” in this story are McDonald’s shareholders, who pocket the difference between what the company pays and what their workers’ need to make ends meet. They use their lobbying power to oppose minimum wage hikes, but they haven’t beaten back deep cuts to our social welfare system.
This kind of subsidy is incredibly common in today’s low-wage economy. According to a study released last week by the Labor Center at UC Berkeley…
More than half (52 percent) of the families of front-line fast-food workers are enrolled in one or more public programs, compared to 25 percent of the workforce as a whole.
The cost of public assistance to families of workers in the fast-food industry is nearly $7 billion per year.
At an average of $3.9 billion per year, spending on Medicaid and the Children’s Health Insurance Program (CHIP) accounts for more than half of these costs.
Due to low earnings, fast-food workers’ families also receive an annual average of $1.04 billion in food stamp benefits and $1.91 billion in Earned Income Tax Credit payments.
People working in fast-food jobs are more likely to live in or near poverty. One in five families with a member holding a fast-food job has an income below the poverty line, and 43 percent have an income two times the federal poverty level or less.
Even full-time hours are not enough to compensate for low wages.
This isn’t how a “free market” is supposed to work. These workers are selling their labor for less than the cost of production – less than what it takes to provide basics like food, shelter and health care. Low-wage employers are in turn keeping the cost of their products artificially low by socializing a chunk of their labor expenses. And while we may be enjoy a cheap burger, we end up paying more for it when taxes are pulled out of our paychecks.
billmoyers.com...
I wish there was more that I could add, but seriously the video and stats easily speak for themselves.
Peace, NRE.
XPLodER
reply to post by seabag
the real welfare queens are big corps,
which is why they are spending so much money demonizing food stamps ect,
because people LOVE to hate the little guy taking a little,
BUT IGNORE THE BIG GUYS TAKING ALOT
the entitlement argument is intended to distract from the real socialists,
who intentionally hire at low wages and get the government to pay the short fall,
so the blame can be SHIFTED onto the workers instead of the corps.
in effect you are supporting socialism for the rich corps and capitalism for the poor workers.
whats interesting is that you cant or wont recognize that "entitlements" go to share holders and the bills go to the tax payers,
this is socialising costs (labour) and privatising profit (value from profit)
where is your misplaced out rage?
xploder