Exploring Wealth Disparity: Walmart, Waltons, and Earnings

Discussion around wealth disparity often delves into comparisons of earnings between employees and top-tier business owners, and one such example is the comparison between the Walton family and the earnings of employees at Walmart. The claim that the Waltons earn more in one minute than Walmart employees earn in a year has been widely circulated, but is it true?

Background and Context

Several years ago, I came across an article that compared the earnings of workers in a third world country, such as Haiti, where Disney dolls were made, to the earnings of Disney's CEO. The stark disparity was shocking, with it taking 300 years for an average third-world worker to earn what the CEO earned in just one hour. Closer to home, I remember a job where the CEO's earnings in one hour equaled what I earned in an entire year. These disparities stand out, especially when considering the conditions under which workers in those countries live.

The Walton Family and Walmart

The Walton family is the owners of Walmart, a global behemoth that makes billions in revenue. It’s essential to clarify that the Waltons’ earnings are from investment returns and not money they directly earned by working at the retail giant. The main argument here is whether the claim that the Waltons earn more in one minute than Walmart employees earn in a year is accurate.

Labor at Walmart

A typical starting salary at Walmart is $11.00 an hour, with the possibility of 1-5 annual raises. Let’s assume an employee works at Walmart for 20 years, working 40 hours a week, without overtime. In this case, an employee could earn around $3.12 billion in a year. However, Walmart started with an IPO (Initial Public Offering) valuation of $5.6 billion, indicating that its market value has accelerated significantly.

Walmart reported a net profit of $9.8 billion in 2018, and the Walton family owns approximately 50% of the company. Assuming all $9.8 billion in profits was distributed as dividends, the Waltons would have earned approximately $4.9 billion for the year. Given that the Waltons own 50%, their actual earnings from the company would be around $4.9 billion / 2 $2.45 billion.

Disparities and Calculations

Calculations that attempt to support the claim involve comparing the annual earnings of Walmart employees to the Waltons' earnings per minute. If an average Walmart employee earns $25,000 a year, the Waltons would need to earn about $10 billion a year to earn more than an average employee in one minute.

However, Walmart has approximately 2 million employees. So, to maintain the comparison for just one Walmart employee, the Waltons would need to earn 2 million times $10 billion, or $20 quadrillion in a year. This figure is astronomically higher than the total annual income of every person on the planet or the value of all assets on Earth.

Misconceptions and Fact-Checking

Claims like these often stem from a lack of factual evidence or an underlying bias. It's important to verify such claims with accurate sources and data. The claim about the Waltons earning more in one minute than Walmart employees earn in a year is not supported by factual evidence, and it is part of a broader discussion on wealth disparity.

While it’s true that CEO salaries are often significantly higher than those of their employees, the comparison must be made between similar positions in similar companies. It’s also important to recognize the broader context of how much money the Waltons generate and the investments they make in their business, rather than focusing solely on the individual earnings of Walmart associates.

Conclusion

The comparison between the Waltons and Walmart employees is a complex issue that involves various factors, including company earnings, employee compensation, and ownership structures. Discussions around wealth disparity should be informed and based on accurate data, rather than sensationalized claims.

References and Further Reading

To understand wealth disparity better, consider reading more about Walton Family and their role in Walmart. You might also want to explore articles and analyses about the Economics of Wealth Disparity.