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Wal-Mart: Leeching off the American taxpayer


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Wal-Mart, the nation's largest employer, perhaps is best known for low prices. But now, reports CBS News Correspondent Bill Whitaker, there are charges that the superstore isn't such a bargain.

A recent University of California, Berkeley study found that the fast growing retailer takes more from communities than it gives.

"Because of the low wages and because people do not have health insurance through their employer, people rely on public support to make ends meet," says the school's Ken Jacobs.

Estimates are the result is a tab to California taxpayers of $82-million a year for health care, food stamps, and other social services.

Current and former employees say that sounds right, Whitaker observes.

"I don't have any health benefits, so I just got to make it," points out Wal-Mart employee Anthony Wilson.

Former Wal-Mart worker Brandon Police adds, "I've seen Wal-Mart employees have to rely on government welfare, housing, etc."

UC Berkely's Jacobs asserts, "This is a subsidy for Wal-Mart. Wal-Mart is, effectively, in California and the rest of the country, shifting their labor costs onto the public."

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What the report says about Wal-Mart employees in California:

• Average wage: $9.70 an hour, compared with $14.01 an hour for other large retailers

• Public assistance: $1,952 per worker, compared with $1,401 for workers at other retailers

• Cost to state: $86 million, including $32 million in health-related expenses

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