Full-Time Michigan Workers Still Rely on Food Assistance

Article Summary –

The report highlights that thousands of workers at major retailers in Michigan, such as Walmart and Amazon, rely on food assistance programs due to low wages. Researchers suggest addressing wage suppression by raising the federal minimum wage and strengthening union protections, although there is disagreement among economists about the potential for increased consumer prices. The study also criticizes large corporations for spending heavily on stock buybacks, with the “Low-Wage 20” corporations spending $260 billion over six years, rather than investing in higher worker pay, as average median worker earnings are around $29,000 annually, compared to CEO compensation of over $18 million.

By Chrystal Blair

Thousands of workers at major retailers in Michigan depend on food assistance programs, per a new report examining wages at some of the nation’s biggest employers.

Researchers analyzed the “Low-Wage 20,” referring to 20 low-paying corporations employing over 6 million workers nationwide, including Walmart, Amazon, and Target. Data from Michigan and three other states showed Walmart had nearly 11,000 employees enrolled in SNAP food aid, while Amazon had well over 9,000.

Sarah Anderson, director of the Global Economy Project at the Institute for Policy Studies, emphasized the affordability debate should cover more than just prices.

“That is the problem of wage suppression,” Anderson stated. “Many workers go to their jobs daily but still can’t afford basic necessities like food or housing.”

Researchers suggested raising the federal minimum wage and strengthening union protections as potential solutions. However, economists remain divided, with concerns higher labor costs could increase consumer prices.

The report highlighted that many large corporations are spending billions elsewhere. Anderson pointed out the 20 firms collectively spent $260 billion on stock buybacks over six years.

“They have the money,” Anderson argued. “It’s just being allocated to benefit top executives instead of investing in their workforce or other productive long-term investments.”

Researchers noted the average median worker pay across these companies was about $29,000 a year, while average CEO compensation exceeded $18 million. Business leaders argued executive pay is typically set by corporate boards and linked to company performance.