Low Wages, A Burden on the Economy?

“Social Responsibility” is a key aspect to a successful business as outlined by Friedman. Social responsibility is using the stakeholder’s money as most people would think, for good rather than putting it back in the company to be profitable. But as Friedman states, this is really not the case. Walmart’s use of taxpayer’s money is a great example, http://www.forbes.com/sites/lauraheller/2013/05/31/are-wal%E2%80%90marts-low-wages-a-drag-on-the-economy-new-report-says-yes/.

Walmart has employed many workers all across many countries but these workers receive low pay. The taxpayer’s money goes towards benefits for these employees allowing them to enroll in BadgerCare, costing taxpayer’s upwards of $3000 a person each year for each employee. This is not good use of the taxpayer’s money and in fact, a burden on the economy. Although claiming to be giving higher paying jobs and many opportunities to move up in the business, there are still many low wages with benefits, given at the taxpayer’s expense. This a poor use of the public’s money that could be going to other things.

Although Walmart is definitely not suffering financially, as more and more people realize what Walmart is doing with their money, they may not be as apt to buy there. Yes there is the thought that they are doing ‘good’ with the stake holder’s money but why is it up to the stakeholder’s and not Walmart to give employees a decent wage. This money could be going to improve Walmart stores or maybe just give the tax payer’s a break. $1,744,590 a year sounds a little bit ridiculous to me to just go towards benefits for these employees when Walmart could be raising their wages.

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