Can Wal-Mart Connect the Dollars?

Wal-Mart reported last week that US revenue declined in part due to the decrease in the food stamp program that began on November 1st. Will they finally connect the dots, or dollars, between marginal wages and purchasing power?

Wal-Mart’s own employees have been eligible for food stamps because they are paid so little – a combination of the current minimum wage and providing less than full time employment. The company has been known to include food stamp applications as part of its new-hire package.

Low prices and a foot print in rural areas has created a customer base that includes food stamp beneficiaries. Some financial analysts estimate that 18 % – 20 % of all food stamps are used at Wal-Mart stores.

With an employee base of food stamp eligible personnel and a customer base of food stamp eligible people the reduction in the food stamp program has impacted the big box chain. When people have to choose between eating and buying a new pair of jeans, they forego the jeans.

Maybe the new CEO will be smart enough to figure it out. When people don’t make enough money to consume stuff, they don’t buy stuff. Wal-Mart’s economic model is unsustainable and the company’s significant role in the poorer areas of the US threatens the sustainability of local economies as well. This is the real reason why the minimum wage issue in particular and the “wealth gap” in general are serious matters for our nation’s future.

Great Speech…Totally Great

President Obama surprised our country tonight with one of his best speeches. Starting with the accomplishments of his administration thus far, ending with a long roaring tribute to a wounded soldier and along the way hitting hard at those who hold us back. “Climate change is a fact!” “No one who works for a living should live in poverty.” Gone are pre existing conditions. Just to name a few.

Let’s hope our side feels invigorated again. The other guys have tons of Koch money and no sense of common decency. Witness their latest jabs against the character of Wendy Davis, just to name one of many. Can’t fight our ideas so they attack our people. We need to get them out, as much as we can, in this election cycle.

Our Economic Data

Job Creation was down to less than 100,000 new jobs per month, but unemployment percentage barely budged because an even greater number of people have “stopped looking.”

Wonder what the unemployment percent would be if we had the following data:

  • Total number of people who would really like to be working, including those who have given up searching
  • Total number of people who are showing up in our official “unemployed” data
  • Total number of people who are unemployed but did not get reported because:
  1. They were self employed and lost their last client
  2. They were let go with a severance package and an agreement that they “resigned”
  3. They actually did resign

Many of the situations above are not reported. Many of us who are unemployed do not ask for unemployment because it shows up on your credit rating thereby doing more harm than good.

Isn’t it time we had the real facts??

Texas GOP’s Voter ID Problem

After the Supreme Court Ruling on the Voting RIghts Act, the GOP dominated Texas Legislature passed new voter identification requirements, quickly signed into law by GOP governor Rick Perry. One of these new rules particularly affects women, as it requires the name on your voter registration and the name on the identification card you bring to the poll (typically one’s drivers license) be identical. Turns out that recently married women may not have updated their photo ID and will be rejected at the polls.

Fortunately Dems are getting the word out, especially in the big cities, and are helping women and other voters to acquire the required original document (e.g. the original marriage license) that supports the person’s identity. So convoluted.

The potential silver lining here is that would be GOP voters in rural areas of the state could also be impacted and, not having the big city resources, be as likely subject to difficulty as Dem voters.