Why California Wants Wal-Mart Out

Wal-Mart's presence in California is actually killin' our economy. Fellow Californians, we'll repeat those three words: Costco, Costco, Costco. Thank you.

Study Cites Social Costs of Wal-Mart
Company workers draw $86 million a year in aid, researchers say. But the retailer says it gives jobs to people who otherwise would not be employed.

Inadequate wages and benefits force workers at Wal-Mart stores in California to seek $86 million a year in state aid, according to a report released Monday by the UC Berkeley Labor Center.

Moreover, if other retailers cut their wages and benefits to the levels offered by Wal-Mart Stores Inc., the cost to California's public-assistance programs would rise by $410 million annually, the study said.

In their report, Berkeley researchers Arindrajit Dube and Ken Jacobs contend that more than other retail workers, Wal-Mart employees rely on a variety of public-aid programs, including food stamps, Medicare and subsidized housing.

"In effect, Wal-Mart is shifting part of its labor costs onto the public," the researchers wrote. "Wal-Mart's long-term impact on compensation in the retail industry has the potential to place a significant strain on the state's already heavily burdened social safety net."