Thousands of workers at major retailers in Michigan rely on food assistance programs, according to a new report examining wages at some of the nation’s largest employers.
Researchers analyzed what they called the “Low-Wage 20.” The term refers 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, said the affordability debate should include more than just prices.
"That is the problem of wage suppression," Anderson explained. "That so many workers in this country go to their job every day but still can't afford even the basic necessities of putting food on the table or roofs over their heads."
Researchers said potential solutions include raising the federal minimum wage and strengthening union protections. But economists remain divided, with some warning higher labor costs could raise prices for consumers.
According to the report, many large corporations are spending billions of dollars in other ways. Anderson noted the 20 firms alone spent $260 billion on stock buybacks over the past six years.
"They have the money," Anderson contended. "They are just putting the money into things that are going to benefit their top executives instead of investing in their workforces or other productive long-term investments."
Researchers said the average median worker pay across the companies studied was about $29,000 a year, while average CEO compensation topped $18 million. Business leaders countered executive pay is typically set by corporate boards and tied to company performance.
