Wal-Mart contributes to poverty, study findsAbout 20,000 families nationwide have fallen below the official poverty line as a result of Wal-Mart’s expansion, a new study says.
During the last decade, dependence on the food stamp program nationwide increased by 8%, while in counties with Wal-Mart stores the increase was almost twice as large at 15.3%. For most Wal-Mart employees, the hours worked and the wages paid do not help their families transition out of poverty, the study said.
The study, which sought to identify the independent effect of Wal-Mart stores on changes in poverty rates, found that one of the greatest effects of a Wal-Mart opening is the closing of mom-and-pop operations. The study says that "by displacing the local class of entrepreneurs, the
Wal-Mart chain also destroys local leadership capacity."
Read more here.
There’s no comment from Wal-Mart as yet. Wonder how the Wal-Mart spin doctors will challenge this research.