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Walmart CEO Memo on Meeting with Obama “Equal Parts Arrogance and Ignorance”

October 20, 2012 by staff

By Al Norman
Published November 19, 2012

Was it Bill Clinton who inserted Walmart on President Obama’s short list for Fiscal Cliff discussions at the White House recently?

Clinton promotes Walmart CEO Mike Duke like the late Sam Walton used to push Moon Pies. But it’s hard to imagine Barack Obama suffering through a meeting with Duke, who personifies the 1% corporate power-broker, and whose store managers warned Walmart “associates” in 2008 that a Senator Obama in the White House would favor the unions. Ironically, now its Duke who is in the White House.

After meeting with the President, Walmart’s CEO issued a 216-word statement that was equal parts arrogance and ignorance. The Walmart Statement on Fiscal Cliff Meeting with President Obama included the following dictums:

“In many ways, Walmart’s customers are at the center of this debate.” Why? Because there are 19 million of them every day? Discount shoppers represent no social movement or coherent vision of America—but because they are the only people who can move Walmart’s stock price–they are the focus of everything Walmart says.

“Walmart Moms tell us their confidence in the economy is shaped by whether they believe Washington is working for them.” Walmart loves it that political pollsters have created this demographic that bears the retailer’s name. But everydemographic group in the country thinks that more Congressional gridlock is intolerable, and that the government is not “working for them.” But ask these same people if the Walton Family is working for them?

Walmart Moms might not be pleased to learn that according to the Economic Policy Institute, the U.S. trade deficit with China, between 2001 and 2006, eliminated 1.8 million U.S. jobs—and Walmart’s trade deficit with China alone eliminated nearly 200,000 U.S. jobs. Walmart was responsible for 11% of the growth in the U.S. trade deficit during this period.

“Our customers are working hard to adapt to the ‘new normal,’ but their confidence is still very fragile. They are shopping for Christmas now and they don’t need uncertainty over a tax increase.” In other words, don’t ruin the holiday spirit for our shoppers with all this talk about falling off a Cliff. Sure, customers are “fragile,” because many have had to trade down a decent-paying job for a Walton Job. A recent study by the Investigative Reporting Workshop notes that U.S. factory jobs dropped by 44% from 21 million jobs in 1979, to 11.7 million manufacturing jobs in 2011.

Walton Jobs lock hundreds of thousands of workers at the poverty level. Walmart needs an underclass of workers who are financially desperate enough to work part-time for $8.90 an hour. These people aren’t worried about the Fiscal Cliff—they have already gone over it by working at Walmart.

A 2011 research brief by the Center for Labor Research and Education at UC Berkeley concluded that “jobs created by Walmart in metropolitan areas pay less and are less likely to offer benefits than those they replace…Walmart workers earn an estimated 12.4% less than retail workers as a whole, and 14.5% less than workers in large retail.”

The same report concluded that if Walmart paid its workers $12 per hour and passed on the entire cost of that wage increase to customers, the average Walmart shopper would pay 46 cents more per shopping trip. The workers would receive as much as $6,500 in an average annual pay increase–which they would no doubt spend in their local economy to pay their rent, food and utility bills.

Part of the ‘new normal’ in a Walmart economy is that fewer people are working, and they are working for less. The National Bureau of Economic Research found that a Walmart store opening reduces county-level retail employment by about 150 workers, and each Walmart worker replaces approximately 1.4 retail workers at other merchants.

“We encourage the White House and Congress to work together on an approach that includes additional revenue, comprehensive tax reform, and spending cuts, including entitlement reforms, to get our fiscal house in order while creating economic growth.” Keep in mind that the man writing this was paid $18.1 million by Walmart in 2011, not counting the use of a company plane—a perk valued at around a $100,000.

What kind of “entitlement reforms” would Walmart want? They certainly don’t want to shrink Medicaid, because in states that have published data on corporate use of Medicaid, Walmart consistently places at the very top of private companies with the most employees and dependents who rely on taxpayer-supported Medicaid health care. Similarly, cutting Medicare and forcing elders to pay more out-of-pocket for health care is going to reduce their discretionary spending at Walmart.

Social Security should not be on Walmart’s entitlement reform list, because it’s a Trust Fund. That distinction is likely to be lost on Mike Duke, who, because of the cap on Social Security wages subject to the payroll tax, contributes based on only 2.6% of his $4.18 million in base salary and cash performance bonus. His $13.1 million in stock awards is not subject at all to the payroll tax. Duke pays the same FICA tax as someone earning $110,100. In the first 10 days of the year, Mike Duke hits the cap on Social Security taxable income—the rest of his work year is tax free. So any “reforms” on Social Security should start with people like Mr. Duke (and the much richer Waltons, whose unearned income is not taxed by Social Security) paying their fair share to help today’s retired workers.

“Washington needs to find an agreement to avoid the fiscal cliff.” Walmart could help that agreement by changing its business model from one of rampant exploitation of its workers and vendors, to one that keeps product sourcing and jobs in America, offers a liveable wage to its workers, and calls upon families like the Waltons to pay their fair share in taxes.

If America goes over the Fiscal Cliff, we will find Walmart waiting or us at the bottom with a check-out register.

Al Norman has been helping communities fight big box sprawl for 19 years. He is the founder of Sprawl-Busters. His most recent book is Occupy Walmart. You can follow him on Twitter: @SprawlBusters.

Filed Under: Uncategorized

Three Sponsors Dump the Presidential Debates While Citizen Groups Call for Disclosure of Agreement

October 1, 2012 by staff

October 1, 2012

Reclaim Democracy is among 18 groups that called on the Commission on Presidential Debates (CPD) to release the secret debate contract negotiated between the Republican and Democratic presidential candidates.

Spearheaded by Open Debates, the call also is endorsed by Common Cause, Judicial Watch, FairVote, Demos, League of Rural Voters, Rock the Vote and others.

In a press release, Open Debates reported: “Robert F. Bauer of the Obama campaign and Benjamin L. Ginsberg of the Romney campaign negotiated a detailed contract that dictates many of the terms of the 2012 presidential debates, including how the format will be structured. The Commission on Presidential Debates, a private corporation created by and for the Republican and Democratic parties, agreed to implement the debate contract. In order to shield the major party candidates from criticism, the Commission on Presidential Debates is concealing the contract from the public and the press.”

The contract still may be under negotiation.

Philips Electronics recently became the third entity to drop sponsorship of the debates in the face of criticism for its deliberate exclusion of all but Democratic and Republican candidates and its ongoing neglect of critical issues — especially those on which the
two dominant parties are united (at least in their disinterest to address the topic).

The YWCA and BBH New York (an ad firm) also recently dropped their sponsorship, meaning the CPD has lost 30% of its sponsors before the first debate. The remaining sponsors are Anheuser-Busch Companies, The Howard G. Buffet Foundation, Sheldon S. Cohen, Esq., Crowell & Moring LLP, International Bottled Water Association (IBWA), The Kovler Fund, and Southwest Airlines.

Mark A. Stephenson, the head of corporate communications at Philips North America, said, “We respect all points of view and, as a result, want to ensure that Philips doesn’t provide even the slightest appearance of supporting partisan politics. As such, no company funds have been or will be used to support the Commission on Presidential Debates.”

The news was applauded by advocates of independent, non-partisan debates and by former New Mexico Governor, Gary Johnson, the Libertarian candidate for President. Johnson, the highest polling “third party” candidate thus far in 2012,  recently sued the CPD for what his campaign calls illegal election activity.

Green Party presidential candidate Jill Stein also appears on enough state ballots to win the electoral college votes necessary to win the election, but the CPD creates qualification criteria that has excluded all third party or independent candidates from the debates since 1996.

This year, the CPD provided candidates a list of debate topics ahead of time — an unprecedented step that ensures even less opportunity for voters to see candidates thinking and responding, as opposed to recalling and reciting.

Voters of every ideology lose when our choices are dictated by the two dominant parties. Reclaim Democracy has long called for ousting the bi-partisan CPD in favor of a non-partisan and independent Citizens Debate Commission. For a more detailed account of the problems with the CPD and the need for democratic debates, see our past commentaries, such as Replace Bi-partisan Shows With Real Debates or visit the Open Debates website.

Update, October 1

Please help persuade more sponsors to withdraw their support of the CPD.  Contact one or more of following companies and foundations and express your desire for them to withdraw sponsorship.

Crowell & Moring LLP
The Chairman is Kent A. Gardiner: kgardiner@crowell.com

Anheuser-Busch, Inc., St. Louis, MO
800-342-5283
E-mail Contact Form: http://contactus.anheuser-busch.com/Contactus/email.asp

Southwest Airlines, Dallas, TX
Contact form: https://www.southwest.com/contact-us/contact-us.html

The Howard G. Buffet Foundation, Omaha, NE
Contact form: http://thehowardgbuffettfoundation.org/media/media-relations
Since the Buffet Foundation says its primary mission is to improve the standard of living and quality of life for the world’s most impoverished and marginalized populations, you might ask them to consider this chart.

Sheldon S. Cohen, Esq. at the firm of Farr, Miller & Washington, Washington, DC
800-390-3277 or 202-530-5600. Fax: 202-530-5508
Email: sscohen@farrmiller.com

International Bottled Water Association, Alexandria, VA
703-683-5213, Fax 703-683-4074
Email: ibwainfo@bottledwater.org

The Kovler Fund aka Marjorie Kovler Research Fellowship, Boston, MA
617-514-1624, Fax: 617-514-1625
Email: kennedy.library@nara.gov

Go to overview of the presidential debates and the need for reform.

Filed Under: Uncategorized

Part-time Researcher / Writer Sought

April 24, 2008 by staff

Reclaim Democracy! works to expand voting rights, build an inclusive democracy, and shrink the power of money and corporations over government and civic society. After years of all-volunteer operation, we seek a person to help with research, update durable resources on our website, and to create original articles (mostly researched commentary). You’ll receive editing assistance from nationally-published writers and, if successful, proceed to craft commentaries for outside publications.

Strong research, typing, and persuasive writing skills are essential. Knowledge of organizing, voting rights, corporate power/accountability, and racial justice is desirable.

Most research and writing can be performed at home on your schedule, with an occasional meeting. Starting pay is $18 – $24/hr. and will increase after two months. A range of 10-40 hours per month is offered initially. A strong performer willing to engage in fundraising activities can expand their role (we are a 501c3 nonprofit).

Our articles typically connect to current events in ways that advance these core objectives: 

  • Help build a movement to thwart voter suppression, schemes to block direct democracy, and otherwise prevent progress toward a more representative representative multi-racial democracy. We promote a constitutional right to vote as a vehicle to focus energy proactively
  • Eroding the power of corporations and limiting them to business activities
  • Revoking the Court-created precedents that equate money with speech and bestow constitutional rights upon corporations
  • Defending human rights from racism, fascism, corporate exploitation, and other threats

The position is available immediately and, though our writing is typically for a national audience, we prefer to a relationship with a person here in Chittenden County (VT).

Please send a brief note of interest and link (web page or a Google Doc) 2-3 persuasive writing samples to: info@ReclaimDemocracy.org. If you have other skills you’d like us to know about, please share! We’ll respond within three business days.  

Filed Under: Uncategorized

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