But what you might not know is that in August the Senate cut funding for the SNAP program, as part of a deal to ensure that "legislation enacted to save teacher and other public sector jobs and to provide support to the states attempting to shore up Medicaid budgets" was "deficit-neutral."Sums up my feeling pretty well. This is garbage.
The funding cuts for SNAP don't kick in until 2014...
Senate Republicans are demanding that tax cuts for the wealthy -- costing around $700 billion over the next ten years -- be retained, regardless of the impact on government finances. But money directly targeted at saving public sector jobs and paying for Medicaid must be offset by cuts to the welfare net for the poorest Americans. No baby formula for you ma'am, but we're happy to subsidize your new BMW, mister hedge fund manager
I think we should be honest in presenting our ideas in terms of how we’re going to do that and not just say that we’re going to form a commission and try to solve the problem some other way.In 2010, after Congress voted down a bill that would have created such a bipartisan commission, President Obama created the Catfood Commission by Executive Order.
Wal-Mart has had a hugely progressive impact on America by exerting downward pressure on grocery prices. Yes, even after accounting for their impact on wages.Something to keep in mind: that downward pressure has been borne by increasing automation of the grocery supply chain and an emphasis on software tools to replace human employees.
of course that's how it works - but the important question is does the consumer end up paying less for their entire basket of goods - and the answer has historically been yes.I'd like to see some cites on that, because their business model at present is built on the answer being "No." On specific key products, their prices are indeed lower for specific calendar cycles. That has no bearing on the cost of their
Why does the consumer care if ConAgra is getting killed on price?The same reason we should care about oil supplies when gas is cheap. Is it that hard to work this out?
Uhm yeah, because consumer product companies returns on capital are much much greater then their required rate of return. WMT is not dragging down profitability to the point where it is no longer rational to reinvest in making branded ketchup.Ahem.
Vlasic is owned by fucking Blackstone. If that sob story were true they would have shut that thing down a long time ago.My claim was was that the primary costs of WalMart's pricing strategies are passed directly to their suppliers, rather than mapping directly to their own employees' salaries as earlier posts suggested. In a number of cases, the suppliers have been forced to supply product effectively below cost. In many other cases, suppliers have manufactured lower-quality product specifically for the WalMart supply chain. In those situations, the costs are being borne by quality reductions in the product. This means that consumers aren't "getting a better deal," rather they are paying less for something that is worth less. That's a tradeoff that lower income buyers must make, but it doesn't mean that WalMart has magically made Thing X cheaper.
Don't believe everything you read in Fast Company.... WMT is not killing these guys.My suggestion was not, in fact, that we should "feel sorry for ConAgra" as you seem to indicate, simply to note that the costs are being borne elsewhere. Nor am I basing my opinions on FastCompany, any more than you are basing yours in a quick Google search for ConAgra.
I know two people who work in retail; one at Walmart, one at a retail clothing store in a shopping mall. Guess where the working conditions, management and wages are better? Walmart. Walmart certainly isn't "driving wages down to the minimum".I have a sneaking suspicion that this boils down to the human tendency to confuse examples with trends. There's no question that individual small businesses or mall chains have long been crap places to work, with low wages. What is unique about Walmart (once again) is its size and market-shaping power. With 1.8 million employees, it's one of the largest employers on the planet. Its insistence on keeping wages as low as possible (and fighting minimum wage changes) are understandable but absolutely push the wage trends downward.
Sorry to be such a dick, but that is patently wrong. (there's a nice little chart on page 4)
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posted by JohnnyGunn at 12:28 PM on September 22, 2010 [3 favorites]