This Salon piece nails it about poverty in the USA…

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SUNDAY, DEC 15, 2013 01:00 PM CET

Poverty nation: How America created a low-wage work swamp

For decades, both parties supplanted a push for higher wages with well-intended public aid. The result: calamity

JOAN WALSH 

Poverty nation: How America created a low-wage work swampEnlargeNewt Gingrich, Barack Obama, Bill Clinton (Credit: AP/Ron Edmonds/Reuters/Joshua Roberts/AP/Stephan Savoia/Photo collage by Salon)

2013 is the year many Americans discovered the crisis of the working poor. It turns out it’s also the crisis of the welfare poor. That’s tough for us: Americans notoriously hate welfare, unless it’s called something else and/or benefits us personally. We think it’s for slackers and moochers and people who won’t pull their weight.

So we’re not sure how to handle the fact that a quarter of people who have jobs today make so little money that they also receive some form of public assistance, or welfare – a proportion that’s much higher in some of the fastest growing sectors of the workforce. Or that 60 percent of able-bodied adult food-stamp recipients are employed.

Fully 52 percent of fast-food workers’ families receive public assistance – most of it coming from Medicaid, food stamps and the Earned Income Tax Credit — to the tune of $7 billion annually, according to new research from the University of California-Berkeley’s Labor Center and the University of Illinois.

McDonald’s workers alone receive $1.2 billion in public aid, the study found. This is an industry, by the way, that last year earned $7.44 billion in profits, paid their top execs $52.7 million and distributed $7.7 billion in dividends and stock buyback. Still, “public benefits receipt is the rule, rather than the exception, for this workforce,” the study concluded.

Then there’s Wal-Mart, which as Salon’s Josh Eidelson recently reported, boasted to a Goldman Sachs conference that “over 475K” of its 1.3 million workers make more than $25,000 a year – which lets us infer that almost 60 percent make less.

Democrats on the House Committee on Education and the Workforce estimated that the giant low-cost retail chain benefits from many billions in public-assistance funding; one Wisconsin “superstore” costs taxpayers at least $1 million a year in public assistance to workers’ families. Remember, too, that six members of the Walton family own as much wealth as 48 million Americans combined.

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