“Beware Of Walmart’s Role”: There’s Plenty Of Dark Money Baked Into The Anti-Gun Control Cake
As Vice President Joe Biden plotted his task force’s plan of action on gun control this week, he invited representatives Walmart to the White House to talk about it. That makes sense—as we detailed last month, the retail giant is the biggest seller of weapons and ammunition in the United States. Stakeholders as far-flung as the hunting groups Ducks Unlimited and Pheasants Forever were invited to meet with Biden’s task force, so Walmart surely has a place at the table.
In fact, many progressives and gun control advocates argue this is a very positive development .The thinking goes like this: Walmart would stand to benefit from a strengthened background check system, because independent sellers would have to go to a certified gun retailer (like Walmart) to conduct background checks—or might stop selling guns altogether, thus sending more customers Walmart’s way. The chain also must protect its image as a responsible, family-friendly store: it previously partnered with Mayors Against Illegal Guns to adopt tougher standards for gun sales.
So maybe Walmart can hop on board and advocate for the White House’s gun control package, thus lending a significant voice and lobbying power to the good guys’ side, and creating a crucial rift between gun retailers and manufacturers.
That all sounds good—if it happens like that. (Store officials haven’t yet announced any position on gun control following the White House meetings.) But there’s significant reason to suspect it won’t work out so splendidly. Clearly, the best of both worlds for Walmart would be a strengthened background check system that drives new customers to its stores, and no assault weapons ban.
Gun sales are a key part of Walmart’s recent sales spike, and have shot up 76 percent over the past two years. Walmart doesn’t sell handguns, and so assault rifles make up a significant portion of its gun inventory and thus its increasing sales. Meanwhile, there’s big pressure on Walmart from manufacturers not to stop carrying assault weapons. Freedom Group, a large gun manufacturing conglomerate and maker of the infamous Bushmaster AR-15 assault rifle, said in its most recent financial report that “In the event that Wal-Mart were to significantly reduce or terminate its purchases of firearms, ammunition and/or other products from us, our financial condition or results of operations and cash flows could be adversely affected.”
Walmart has already shown great hesitancy to pull back whatsoever on assault weapons sales. In the wake of the Newtown shooting, as competitors like Dick’s Sporting Goods yanked all assault rifles from shelves temporarily, Walmart didn’t stop selling a single assault weapon.
So: would Walmart be able so support the White House package upfront, perhaps even winning some special goodies that would drive customers specifically to its stores for background checks, while quietly killing the assault weapons ban behind the scenes? It’s happened before, in a very similar dynamic.
During the healthcare reform battles, the Obama White House was eager to get health insurance companies behind the reform push, and they had every reason to do so—the individual mandate meant millions of new customers. So the industry signed on. But there were many other aspects of the legislation it didn’t like, like the medical loss ratio and the public option. So behind everyone’s back, the health industry funneled massive amounts of money—$102.4 million dollars—to the US Chamber of Commerce to fight those aspects of the bill. This dark money was exceptionally difficult to track, but National Journal did it, months after the final legislation was passed.
Walmart, today, already sends significant amounts of money to strong opponents of gun control. The Walmart 1% blog found that between 2010 and 2012, Walmart gave over $1 million to candidates backed by the NRA. They note that “among politicians with 2012 grades from the NRA, 84% of the Waltons’ 2010-2012 cycle contributions went to candidates with scores between A+ and A-.”
So the retail giant already has some money baked into the anti-gun control cake in Washington, and could certainly promise more to these members if they vigorously oppose an assault weapons ban. Moreover, the dark money problem looms large. As Lee Fang has noted, the NRA has a half-dozen legal entities, many of them able to accept undisclosed donations to mount attack ads and lobbying campaigns. Walmart could easily dump money into these groups and it’s likely we would never know.
An outcome where the background check system is strengthened but there is no assault weapons ban is quite possible: even some conservative members of Congress with ‘A’ ratings from the NRA are coming out for better background checks. Walmart, ever the canny DC operator, must know that this is in reach. I would personally be shocked if the two-step strategy described above isn’t what they end up pursuing.
In that scenario, more gun buyers would be herded to Walmart, where there are plenty of assault rifles helpfully on sale. This is not a good result for gun control advocates. A full assault weapons ban should be enacted—and if Walmart is serious about being a good citizen and backing responsible gun measures, it should lead the way by discontinuing all assault weapon sales. Until it does that, beware any role it plays in the reform process.
By: George Zornick, The Nation, January 11, 2013
“A Transparent Public Relations Ploy”: Don’t Be Fooled, Walmart Hasn’t Changed Anything
In this week’s issue, we describe how Walmart has expanded gun sales—including military-style assault weapons—to half of its stores nationwide, and is the country’s biggest retailer of guns and ammunition in the country.
As our story was about to be published, Walmart removed a Bushmaster AR-15 style assault rifle, the same gun Adam Lanza used to carry out his attack on the Sandy Hook Elementary School, from its website. All of the other assault weapons remain. (See other examples here).
This is one of the most transparent public relations moves in relation to a dangerous product that I can recall—it was literally the least Walmart could do. To be clear, the store never actually sold the guns online. Rather, you can peruse Walmart’s gun inventory on its website, read customer reviews and product specifications and then find a Walmart near you that carries the item.
All Walmart did was remove that one gun, the one most likely to create a public relations problem, from a website where you couldn’t buy it anyway. But the Bushmaster remains on Walmart shelves—something the retail giant confirmed to MSNBC this afternoon, saying there is “no change” to its firearm sales.
Other retail chains, however, are making changes—though only slightly more substantial than Walmart’s URL adjustment. Dick’s Sporting Goods is “suspending” sales of some rifles in stores nationwide during “this time of national mourning,” and taking all guns out of stores located near Newtown, Connecticut. Cabela’s will stop selling AR-15s in Connecticut only.
If Walmart were to curtail weapons sales, however, it wouldn’t just hurt their bottom line. Freedom Group, one of the largest gun manufacturers in the country with $237.9 million in annual sales, said in its most recent financial statement that Walmart accounts for 13 percent of those sales alone, and warned investors of trouble should Walmart ever change its policy:
Our sales to Wal-Mart are generally not governed by a written long-term contract between the parties. In the event that Wal-Mart were to significantly reduce or terminate its purchases of firearms, ammunition and/or other products from us, our financial condition or results of operations and cash flows could be adversely affected.
Freedom Group was dumped today by its private equity owner, Cerberus Capital, following investor pressure. They’re in for more trouble if Walmart stops selling guns—but don’t look for that to happen anytime soon, based on how the retail giant has responded so far.
By: George Zornick, The Nation, December 18, 2012
“Blue Light Special”: Walmart To Pass More Of Its Costs On To Taxpayers
The nation’s largest private employer, Walmart, has announced that beginning in 2013 it will begin drastically reducing the number of new hires who receive health insurance coverage, according to The Huffington Post.
The retail giant surprised many by supporting the drive for universal health care in 2007 and then the employer mandate in 2009.
However, its planned policy of not offering new employees health insurance if their hours dip below 30 a week indicates that they intend to take advantage of Obamacare’s new obligation to provide coverage for those who cannot afford it. And with several Republican governors promising to deny the funds for Medicaid expansion, the new policy could lead to a swift increase in the uninsured.
In several states, Walmart tops the list of employers whose employees seek government-funded health care and food assistance for their families, forcing taxpayers to subsidize its low prices and low wages.
Former Secretary of Labor Robert Reich points out that despite the incredible wealth of Walmart’s primary stockholders, the Walton family, its employees earn wages that may not even keep them out of poverty.
“The average Walmart employee earns $8.81 an hour. A third of Walmart’s employees work less than 28 hours per week and don’t qualify for benefits,” Reich wrote in one of his recent columns encouraging the retail giant’s employees to organize. Across the country a small percentage of Walmart’s employees walked out on Black Friday, protesting the company’s alleged retaliation against workers who speak out for better working conditions.
“Organizing makes economic sense,” Reich wrote.
In 2006, Walmart responded to criticism by greatly expanding the number of employees to whom it offered health insurance. They reduced the number receiving coverage in 2011.
“This is another example of a tremendous government subsidy to Walmart via its workers,” Nelson Lichtenstein, director of the Center for the Study of Work, Labor and Democracy at the University of California, Santa Barbara told The Huffington Post.
This change in policy will push the number of employees without benefits closer to one half.
Critics have said that Walmart provides a huge benefit to poor consumers by multiplying the value of food stamps with its low prices. But to Doug Henwood, that argument misses the central problem with the impact that Walmart has had on our economy:
And, yeah, it’s nice that Walmart has been able to provide a working class facing at best stagnant wages with lots of cheap stuff, but Walmart has itself had no small effect on dragging average wages down. It’s not just that they’ve been an inspiring business model for the rest for corporate sector, impressed by the chain’s growth and profitability. That’s led to endless rounds of outsourcing and speedup. But also by lowering the cost of reproduction of the working class, to use the old language, they’ve made it easier for employers to keep a lid on wages.
Add into the equation that taxpayers are subsidizing the costs of these wages and you have a formula for a permanent underclass underwritten by a government that can do little else than providing basic health care and sustenance.
By: Jason Sattler, The National Memo, December 3, 2012
“It Doesn’t Have To Be This Way”: Walmart Plans To Deny Health Care Benefits To New Employees
Why the ACA can’t kick in soon enough, part the infinite: the Huffington Post is reporting that, according to a new policy that will take effect in January, Walmart will begin denying health insurance to new employees who work less than 30 hours a week. It will also reserve the right to cut health benefits for certain groups of current employees who work less than 30 hours. Walmart workers, like many retail employees, often have shifts and hours that vary from week to week, according to seasonal business cycles, so even workers who are currently working 30 hours or more could be affected.
Let’s not forget that Walmart is the nation’s largest private employer, so this change is hugely important. And it’s important not only in itself, but in the spillover effect it could have on the employment policies of comparable retailers.
The Huffington Post observes that the point of the new policy is to opportunistically take advantage of certain aspects of Obamacare:
Among the key features of Obamacare is an expansion of Medicaid, the taxpayer-financed health insurance program for poor people. Many of the Walmart workers who might be dropped from the company’s health care plans earn so little that they would qualify for the expanded Medicaid program, these experts said.
“Walmart is effectively shifting the costs of paying for its employees onto the federal government with this new plan, which is one of the problems with the way the law is structured,” said Ken Jacobs, chairman of the Labor Research Center at the University of California, Berkeley.
This is yet one more example of why last week’s historic worker protests against Walmart were so important. I’ll add this reminder: it doesn’t have to be this way. Some highly profitable players in the retail game which are comparable to Walmart, such as Costco, manage to treat their workers decently. The reason Walmart runs its business in such a reprehensible manner is because it actively chooses to do so.
By: Kathleen Grier, Washington Monthly Political Animal, December 2, 2012
“They Need Jobs, So Let Them Burn”: Fox Business Host On Bangladeshi Fire Victims, “Let’s Not Victimize Poor Walmart”
Fox Business host and self-evidently despicable person Charles Payne:
It is tragic. I don’t think something like this will happen again. Don’t think that the people in Bangladesh who perished didn’t want or need those jobs, as well. I know we like to victimize everyone in this country, particularly when it comes to for-profit motivation, which is being assaulted. But, you know, it is a tragedy but I think it is a stretch, an amazing stretch, to sort of try to pin this on Walmart but, of course, the unions in this country are desperate.
Let’s take this line by line.
“It is tragic.” Said in an offhanded “let’s get this out of the way so I’m not accused of being heartless” way.
“I don’t think something like this will happen again.” Actually, it happens a lot. Hundreds of garment workers in Bangladesh have been killed in fires in recent years. In fact, at least 10 people were injured in another garment factory fire Monday. It’s true that a fire killing more than 100 people is rare, if that’s what Payne means by “something like this,” but if he just means a fatal fire in a Bangladeshi garment factory, then yeah, it’s going to happen again unless there are big, big changes in labor and workplace safety laws there.
“Don’t think that the people in Bangladesh who perished didn’t want or need those jobs, as well.” Well, Charles, people need jobs. But the thing is, “I need this job” and “I look forward to choosing between burning to death or jumping out of an eight-story building to escape burning to death” are two very different things. “I need this job” should not be a license for exploitation. In fact, garment workers have been fighting to improve working conditions even though by law they are not allowed to unionize, unlike many other workers in Bangladesh. Though the minimum wage for garment workers is now just $38 a month, less than two thirds of the country’s per capita income, that $38 represents a big increase that workers protested and fought for this year. Yes, these workers need jobs, but their fight to make those jobs better, and the large protests they’ve staged in the wake of this fire, show that it’s not as simple as “well, they need jobs, so let them burn.”
“I know we like to victimize everyone in this country, particularly when it comes to for-profit motivation, which is being assaulted.” Victimize? Let’s talk about victims. Like the at least 112 victims of this fire in which there were no fire extinguishers, exits were inadequate or even locked, and one manager reportedly told people to get back to work after a fire alarm sounded. I’m pretty sure they, and not the profit motive, are the victims here.
“But, you know, it is a tragedy but I think it is a stretch, an amazing stretch, to sort of try to pin this on Walmart but, of course, the unions in this country are desperate.” In the wake of this fire, it kind of defies belief how many companies whose clothes were found in the burned factory have said their clothes shouldn’t have been there anymore, that, yes, they’d used that factory in the past but had stopped just in time to deny that their clothes should have been there. Amazing. So no, it’s not just Walmart. It’s also Sears and Dickies and Ikea and who knows what other companies. But as the largest retailer in the world, Walmart does more than any other company to set prices and labor conditions for manufacturers.
Really, Payne might as well have said, “I realize I’m supposed to say this is tragic, but I’m a little confused about why I’m supposed to think the tragedy is the loss of more than 100 lives and not the potential threat to Walmart’s profits.”
By: Laura Clawson, Daily Kos, November 27, 2012
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