underpaying people, being effectively subsidized as their workers are on food stamps
Bill applies for a job at Costco, but Costco only hires a fraction of the number of workers that other retailers do per square foot or dollar of revenue, so they turn him down. In the future, Costco will be paying Bill $0/month. As he continues to hunt for a job, Bill goes on food stamps.
A month later, Bill later applies for a job at Walmart, where he's hired making just above minimum wage at $8/hour. Since he's only earning $8/hour and only working ~30 hours/week to start, Walmart will be paying Bill about $900/month. Bill will continue to receive some food stamps, but less than he was receiving in the month that Costco turned him down.
Explain to me why Walmart is being "subsidized" here.
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underpaying people, being effectively subsidized as their workers are on food stamps
Bill applies for a job at Costco, but Costco only hires a fraction of the number of workers that other retailers do per square foot or dollar of revenue, so they turn him down. In the future, Costco will be paying Bill $0/month. As he continues to hunt for a job, Bill goes on food stamps.
A month later, Bill later applies for a job at Walmart, where he's hired making just above minimum wage at $8/hour. Since he's only earning $8/hour and only working ~30 hours/week to start, Walmart will be paying Bill about $900/month. Bill will continue to receive some food stamps, but less than he was receiving in the month that Costco turned him down.
Explain to me why Walmart is being "subsidized" here.