Later this year, Amazon will begin accepting grocery orders from customers using the Supplemental Nutrition Assistance Program, the federal anti-poverty program formerly known as food stamps. As the nation’s largest e-commerce grocer, Amazon stands to profit more than any other retailer when the $70 billion program goes online after an initial eight-state pilot.
But this new revenue will effectively function as a double subsidy for the company: In Arizona, new data suggests that one in three of the company’s own employees depend on SNAP to put food on the table. In Pennsylvania and Ohio, the figure appears to be around one in 10. Overall, of five states that responded to a public records request for a list of their top employers of SNAP recipients, Amazon cracked the top 20 in four.
By 2021, Amazon is projected to handle 50 percent of all online sales in the United States. To accomplish this, it must add to the dozens of fulfillment centers that ensure the swift delivery of cheap televisions and shampoo bottles to nearly every corner of the nation. And to finance this expansion, the company will doubtless continue to leverage the promise of full-time jobs with benefits that it has used to win more than $1.2 billion in incentives from state and local governments so far.
Even as generous subsidies help Amazon turn a profit, thousands of its workers depend on the federal safety net.
However, though taxpayers have generously subsidized the build-out of Amazon’s warehouses, it’s not clear that the company has held up its end of the bargain. The jury is still out on its warehouses’ net effects on long term employment in the places they’re located. And independent analyses have shown that the company pays below-average wages for the warehouse jobs it brings to town.
The new data showing Amazon employees’ extensive reliance on SNAP demonstrates an additional public cost of the corporation’s rapid expansion. Even as generous subsidies help its warehouses turn a profit, its workers still must turn to the federal safety net to put food on the table. In Pennsylvania, for instance, an estimated $24.8 million in subsidies support 13 warehouses employing around 10,000 workers. At the same time, more than 1,000 of those workers don’t make enough money to buy groceries, according to public data provided by the state.
The American people are financing Amazon’s pursuit of an e-commerce monopoly every step of the way: first, with tax breaks, subsidies, and infrastructure improvements meant to lure fulfillment centers into town, and later with federal transfers to pay for warehouse workers’ food. And soon, when the company begins accepting SNAP dollars to purchase its goods, a third transfer of public wealth to private hands will become a part of the company’s business model.
Read more at https://theintercept.com/2018/04/19/amazon-snap-subsidies-warehousing-wages/.
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