The Walmart 1 Percent in Massachusetts

AFFILIATIONS OF THE WALMART 1%:

  • Walmart Board of Directors member Jim Breyer is on the Board of Directors of Brightcove, Inc.: 290 Congress Street, 4th Floor, Boston, MA 02210; 617-500-4947 (phone), 617-261-4830 (fax)
  • Walmart Board of Directors member Jim Cash is a Director of Veracode, Inc.: 4 Van de Graaff Drive, Burlington, MA 01803; (781) 425-6040
  • Walmart Board of Directors member Jim Cash is part owner and member of the Board of Directors of the Boston Celtics.
  • Walmart Board of Directors member Doug Daft is on the Advisory Council of Thomas H. Lee Partners: 100 Federal St., Boston, MA 02110; (617) 227-1050 (phone), (617) 227-3514 (fax)
  • Walmart Board of Directors member Doug Daft is a Trustee of the Williamstown Theater Festival: PO Box 517, Williamstown, MA 01267; (413) 458-3200 (phone), (413) 458-3147 (fax).
  • Former Walmart CEO and current Walmart Board of Directors member Lee Scott is an Operating Partner of Solamere Capital, 80 Hayden Ave., Lexington, MA 02421; investorrelations@solameregroup.com

 

 

The Walmart 1 Percent’s Influence in Massachusetts Politics

Walmart in politics

The Walmart PAC contributed $15,750 to candidates for Congress from Massachusetts from the 1990 to 2010 election cycles, including $2,500 to Scott Brown’s 2010 Senate campaign.[1]

 

 

Walmart’s Impact on Massachusetts’s Employment Picture

Impact of Walmart stores on retail and other jobs

Based on data available through Walmart’s website, there were 11,390 Walmart associates in Massachusetts as of January 31, 2012.

According to a 2006 study, for every retail job created at Walmart, communities lose 1.4 retail jobs.[2] Based on the findings of this study, we estimate that, if Walmart had no stores in Massachusetts, there would be an additional 4,556 retail jobs in the state.

Impact of Walmart’s China sourcing on jobs

Based on an estimate of Walmart’s share of the U.S.-China trade deficit, we can estimate that Massachusetts lost an estimated 6,770 jobs as a result of Walmart’s practice of sourcing heavily from China. [3]

 

 

Walmart’s Cost to Massachusetts Taxpayers

Taxpayer subsidies for Walmart

Walmart is the world’s biggest company.[4] But despite its colossal financial resources—the company brought in $444 billion in revenue last year[5]—it’s habitually dipped into public coffers to finance its expansion into almost every corner of the United States.[6] In the absence of centralized information or databases on economic subsidies, Good Jobs First, an economic policy and research non-profit, has done extensive research to document the subsidies Walmart has received, and has published the data on Walmart Subsidy Watch. Here’s what GJF uncovered in Massachusetts.

Taxpayer healthcare costs

Tens of thousands of Walmart associates and their families qualify for Medicaid and other publicly subsidized care. Indeed, according to data compiled by Good Jobs First, in 22 of 24 states which have disclosed information, Walmart has the largest number of employees or dependents on the public rolls of any employer.[7]

In Massachusetts: In 2006, 2007, and 2008, Walmart was at the top of lists of employers with the most workers or dependents receiving publicly-funded healthcare. The lists were issued by the Massachusetts Division of Health Care Finance and Policy.[8]

 

 

More Walmart stores coming to Massachusetts

Here’s a list of Walmart stores planned or rumored to be opening in Massachusetts:[9]

  • Boston: Supercenter, Roxbury
  • Fall River: Supercenter, 638 Quequechan St.
  • North Adams: Supercenter, Curran Hwy.
  • Saugus: Supercenter, 770 Broadway
  • Seekong: Supercenter, Route 6
  • Somerville: Neighborhood Market, near the Assembly Square Mall
  • Wareham: Supercenter, Tobey and Tow Rds.
  • Watertown: Supercenter, Arsenal Rd. near town square

 

 


[2] The Effects of Wal-Mart on Local Labor Markets. December, 2006. David Neumark, Junfu Zhang, Stephen Ciccarella.

[3] These numbers are estimates. To arrive at these estimates, we used the report by the Economic Policy Institute that estimated U.S. jobs lost to China by state from 2001-2008.  We then multiplied that number by 9.3%, which is the proportion of the overall U.S.-China trade deficit estimated to be tied to Walmart. We arrived at that number from this study.

[4] As measured by revenue; “Fortune Global 500 2011: The World’s Biggest Companies – Wal-Mart Stores,” http://money.cnn.com/magazines/fortune/global500/2011/snapshots/2255.html

[5] “Walmart reports Q4 EPS from continuing operations of $1.51; Walmart U.S. delivers positive traffic and positive comp sales in Q4,” press release dated February 21, 2012, http://investors.walmartstores.com/phoenix.zhtml?c=112761&p=irol-newsArticle&ID=1663026&highlight=

[6] “Shopping for Subsidies: How Wal-Mart Uses Taxpayer Money to Finance Its Never-Ending Growth,” by Philip Mattera and Anna Purinton, Good Jobs First, May 2004.  http://www.goodjobsfirst.org/sites/default/files/docs/pdf/wmtstudy.pdf

[7] “Disclosures of Employers Whose Workers and Their Dependents are Using State Health Insurance Programs,” Good Jobs First report, version dated January 18, 2012.  http://www.goodjobsfirst.org/corporate-subsidy-watch/hidden-taxpayer-costs.

[8] “Disclosures of Employers Whose Workers and Their Dependents are Using State Health Insurance Programs,” Good Jobs First report, version dated January 18, 2012.  http://www.goodjobsfirst.org/corporate-subsidy-watch/hidden-taxpayer-costs.

[9] Information on planned or rumored stores collected by Making Change at Walmart.