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Child poverty rates soar in the home of Walmart Stores Special

Nov 13, 2009 by Kay Mathews
Bentonville  Arkansas town square.
In Northwest Arkansas, where Walmart Stores, Inc. is headquartered, the number of people in poverty is growing faster than the population, and the number of children in poverty is growing even faster. Low-paying jobs contribute to rising poverty levels.
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Arkansas has ranked in the bottom ten states in terms of child well-being for many years. And, most recently, the 2009 KIDS COUNT Data Book indicates Arkansas ranks in the bottom 10 on nine of 10 indicators such as 44th worst in both the child death rate and percent of teens not in school and not working; 47th worst in the percent of children living in families where no parent has full-time, year-round employment; and 46th worst in both the infant mortality and teen birth rates.
The numbers above were reported in a press release from the Arkansas Advocates for Children and Families.
A number that is especially regrettable is that the State of Arkansas ranks 48th worst in the percent of children living in poverty.
Still, what is worse and somewhat shocking is the fact that child poverty rates in the two of the wealthiest counties in Arkansas have risen considerably.
At a dinner held in Fayetteville, AR last weekend for children's advocates, Arkansas Democrat-Gazette reporter Cyd King said that when the child poverty rates for Benton and Washington counties were presented to the group "The sound of clinking glasses and the 'ching' of flatware hitting plates halted."
Laura Kellams, Northwest Arkansas director of Arkansas Advocates for Children and Families, provided me the data she shared at that dinner. Here are some of the disturbing facts:
*In Benton County, which has one of the highest median incomes in the state, the number of children in poverty grew 161 percent since 1990. During that same time, the overall population grew 116 percent
*Washington County’s population grew 73 percent during that time period, while the number of children in poverty grew 116 percent.
*In 1990, the number of children in poverty in Northwest Arkansas was 7,625 and that number rose to 17,904 in 2007.
Why is this disturbing? One reason is that Wal-Mart Stores, Inc. is headquartered in Benton County (in Bentonville, AR) and the adjoining county is Washington County.
According to MSNBC, Wal-Mart Stores, Inc. was at the top of the Forbes 500 list, ranked by revenues, "for six of the last seven years but fell to No. 2 this year." Exxon Mobil Corp. took the top spot. Still, in 2008, "The world’s largest retailer took in $13.4 billion in annual profit, an increase of about 5 percent."
I asked a guest at the dinner, Dr. William Schreckhise, Associate Professor of Political Science at the University of Arkansas, what his theories are in terms of why child poverty grew at such a substantial rate during what seems to be a generally profitable time in NWA (1990-2007)?
Dr. Schreckhise told me the following:
We tend to automatically associate growth with growing affluence. Why else would people move here unless they could live a much better life when they arrived? But, the reality of it is that not everybody coming here is getting a good, high paying job and keeping it. Instead, there is a portion of the newcomers who will be working in a low-paying job, and this has consequences for our poverty numbers.
A single mother of two working full time has to earn more than a dollar over the minimum wage for her family to be considered above the poverty line. If the newcomers are getting more of these jobs and fewer of the higher-paying ones, we can expect an increase in poverty rate. And, as a result, growth does not automatically translate into a higher standard of living for everybody living here.
Dr. William Schreckhise
Photo courtesy of Dr. William Schreckhise
Dr. William Schreckhise, Associate Professor of Political Science, University of Arkansas
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Dr. Schreckhise indicated that children in Northwest Arkansas fell through the cracks "because social welfare policy in the United States has the containment capacity of a kitchen colander...Even more, the rising child poverty rates in Northwest Arkansas illustrate the folly of relying solely on the notion that 'a rising tide lifts all boats' (though the tide certainly lifts some). If the tide of the fastest growing regional economy in the country failed to lift all the boats, then it is probably not lifting the boats elsewhere."
That Northwest Arkansas has the "fastest growing regional economy in the country" is illustrated by the economic development data found on the Bentonville-Bella Vista Chamber of Commerce site. There, the Bentonville-Bella Vista Chamber of Commerce states, "Bentonville/Bella Vista is a great place to locate new business and industry thanks to the quality of life and an educated and able work force. Milken Institute consistently rates our MSA in the Top 10 for the Best Economic Performers."
Moreover, in terms of national recognition, the Bentonville-Bella Vista Chamber of Commerce cites Money Magazine's 2006 feature that "included Northwest Arkansas in their '100 Best Places to Live' listing for the first time ever."
However, for some children, Northwest Arkansas does not appear to be one of the best places to live. As noted by Dr. Schreckhise, "growth does not automatically translate into a higher standard of living for everybody living here."
And, as indicated in the information given to me by Kellams, "In Northwest Arkansas, the number of people in poverty is growing faster than the population, and the number of children in poverty is growing even faster. As our region has grown more successful, our children have fallen further behind."
This information, however, is a tool that children's advocates use to try to stem the rising tide of child poverty rates in Northwest Arkansas. As Kellams told me, "We try to provide data to the community about child well-being that can inform policymakers and citizens about the challenges that children face, particularly those whose families have lower and moderate incomes."
Interestingly, earlier this month, Walmart and the Walmart Foundation kicked-off a $32 million holiday giving campaign in which refrigerated trucks were donated to 35 U.S. food banks. In a Nov. 3, 2009 press release, Margaret McKenna, president of the Walmart Foundation said, “In this economy, families and seniors across the country who rely on food banks have been hit especially hard...Our business and our charitable giving are united in the commitment to eradicate hunger in America.”
Margaret McKenna  pres. of the Walmart Foundation
Walmart Stores, Inc.
Margaret McKenna, president of the Walmart Foundation
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One of those refrigerated trucks, valued at $80,000, arrived at the Northwest Arkansas Food Bank on Nov. 3. It was reported that the truck was loaded with Wal-Mart private label Great Value products and apples.
The news story indicates that "About 100,000 Northwest Arkansas residents experience hunger every week." Hungry adults and children will benefit from this contribution, but as Dr. Schreckhise emphasizes lower-paying jobs are one of the biggest contributors to poverty in Northwest Arkansas. Still, it remains to be seen if the "world’s largest retailer" that "took in $13.4 billion in annual profit" in 2008, and is the top employer in Northwest Arkansas, will raise workers' wages, as opposed to executives' salaries, to a level that will help to ameliorate the area's underlying poverty problem.
The mission of Arkansas Advocates for Children and Families is to ensure that all children and their families have the resources and opportunities to lead healthy and productive lives and to realize their full potential. The statewide, non-profit child advocacy organization was established in 1977.
The KIDS COUNT Data Book is compiled and released by the Annie E. Casey Foundation.


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9 comments

#1Nov 13, 2009 Stephanie Dearing
Excellent work, Kay. Staggering numbers. Unreal!
#2Nov 13, 2009 Gar Swaffar
Nice work Kay. The apparent bias against a Global Coropration is rather stark though.
#3Nov 14, 2009 Kay Mathews
Hi, Gar! There's bias, and then there's the stark truth. Believe me, I didn't even touch how i really feel about this company and its impact on my hometown and our country.
#4Nov 14, 2009 Kay Mathews
Gar, if you're interested check out this site: http://www.pbs.org/wgbh/pages/frontline/shows/walmart/interviews/lehman.html.
It is a former Wal-Mart manager being courageous and speaking the truth--there is a cost to low prices. I was an Asst. Mgr so I also saw what was going on inside this company that was/is hidden from most folks. Lehman describes it pretty well--vendors being forced to close factories in US and ship jobs oversees, poverty wages for workers, bad/unaffordable health insurance, huge contributions to this country's trade deficit with China, cheap/poor quality products, etc. etc.
#5Nov 14, 2009 Gar Swaffar
Kay, again nice work on the article. The link was one I didn't check last night looking around for what data was available.
I agree that Walmart is a "Low Price (and wage) Leader", I agree they buy too much ChiCom junk and push the trade deficit in the wrong direction.
I also posit though that Wal mart offers that same junk to low income families and allows them a standard of living higher than they might have otherwise (in relation to creature comforts)
#6Nov 14, 2009 Kay Mathews
Morning, Gar (by the way...love your name!)! I do appreciate the nice comments on the work I did..truly, thanks! The last sentence...I would say that it is a vicious circle...WM creating low income families and offering them a place to spend what little they have. And for low income families working at WM--WM talks up the employee (associate) discount of 10%--so the poor spend most of their paychecks at WM. But, what most folks don't know...at least when I was working for them years ago, the average mark up was 28%, so WM was making an 18% profit off their poor employees...I'm sure that average mark up is higher now.
#7Nov 14, 2009 Gar Swaffar
Yes Kay, the Old Company Store/Town thing, similar to what the large cattle, mining, and lumber conglomerates used to run, and still do.
Sam Walton would be hugely disappointed in what WalMart has become. Few remember that Sam made his business by not carrying (at the time) Japanese junk, and whooping kmart into second place for cheap stuff.
#8Nov 14, 2009 Kay Mathews
That's the WM I remember...Buy American! My dad and Sam use to go bird hunting together (with Old Roy, believe it or not!), and I'm pretty sure you are right...Sam's passing meant the Company went in a direction that I don't see him blessing. In fact, remember the uproar over Kathie Lee Gifford products sold in WM stores being made in sweat shops? What was an uproard then has become the business model now.
#9Nov 21, 2009 lamorial
"Sam Walton would be hugely disappointed in what WalMart has become. Few remember that Sam made his business by not carrying (at the time) Japanese junk, and whooping kmart into second place for cheap stuff." - Grar Swaffar
Hey "life is good" Gar, but u r so wrong Wal-Mart continues to operate precisely as Sam the man intended.
Here in Canada, WM, is doing everything in its power to destroy our labour boards and our constitutional rights. It even has the gall to say they should b exempt from any of our present laws.
WM is not only the worst employer - they r the mother of all grinches.
However, u may b surprised that Americas trade deficit and monetary problems with China can be directly traced to Sam the man himself; because he was one off the first to go on buying trips there, to find the cheapest goods he could find from slave/sweat shops - what an honorable entrepreneur he is. Thus trade with China developed.
Of course, being a former military guy u kno that China was considered an enemy: not even recognized by the US until Nixon went there with great fanfare.
http://walmartwatch.com/blog/archives/wal_mart_union_busting_case_goes_to_canadian_supreme_court/
http://www.ufcw247.com/whats_hap/walmart.cfm
Supreme Court of Canada hands Wal-Mart a big defeat
Arkansas giant must make public its union-busting manual for managers
...
"Wal-Mart has demonstrated it will do anything to deny its workers their constitutional right to join a union," says Michael J. Fraser, national director of UFCW Canada.
This includes an appeal to the Supreme Court arguing basically that labour laws applying to other companies in Canada should not apply to Wal-Mart, he said.
"Wal-Mart's attempt to rewrite our labour laws to suit them is an affront to all Canadians, especially by a company found guilty numerous times for unfair labour practices in Canada," Fraser added. NUPGE
http://www.nupge.ca/news_2005/n08ap05b.htm
Let’s not forget China, because here one can see exactly the moral and business philosophy of Sam the man,
http://www.thenation.com/doc/20031208/goldstein

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