That would not surprise me.
Why would a "for profit" company overpay employees?
Pay should be market driven and clearly the employees will work for less than they need when they are subsidized by the government.
So pull the plug on the handout, and everyone of those fucks will go in and demand a raise or quit to a better paying job.
After a mass exodus, pay would be increased to be in better alignment with the work performed.
Originally Posted by GlobeSpotter
The problem is that historically, allowing the market to try and determine employee pay doesn't work.
Look at the meat industry of the early 1900's. Large companies controlled large aspects of employee's lives, from paying them in special corporate currency that could only be spent at the corporate stores (of course, for lower quality goods at a high price).
While you can argue that employees could quit and work elsewhere, the companies all were in collusion and would blacklist anyone who stepped out of line and would work together and set prices, pay, etc.
Fundamentally, in a completely free market, it is not effective for the companies at the top of the food chain to compete, rather it is more cost efficient for them to work together (ie, a monopoly).
This is why government controls on corporations are necessary in order to protect the ordinary citizen from things corporations would naturally do in an unregulated market.
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Regarding Wal-Mart: It's generally known that many of its employees are on some sort of public assistance due to Wal-Mart's practice of simply not paying its employees well.
http://www.pbs.org/itvs/storewars/stores3.html
http://www.forbes.com/sites/clareoco...ic-assistance/
I've also heard that Wal-Mart has some employees on staff specifically to assist their other employees in navigating the public assistance programs, but I'm too lazy to look for articles on that right now.