A Christian Response to Bernie Sanders' Misguided Rant

U.S. Senator Bernie Sanders (Facebook/U.S. Senator Bernie Sanders)

Last week, socialist Bernie Sanders made news when he attended the Walmart shareholders meeting and attacked the firm for paying low wages. At a later demonstration, he said that the Walton family, the major shareholders, should put some of their $175 billion of wealth toward raising wages to at least $15 per hour.

It makes the Waltons sound pretty greedy, but there is much more to the story.

First of all, their wealth is not sitting in a bank. It comes from owning a block of Walmart stock worth about $158 billion. The family earned this wealth by starting with one store in Arkansas and building the largest retail company in America. In addition to the Walton family, millions of Americans own stock in the company, about $145 billion worth, including many pension plans and mutual funds. For these investors, Walmart is an important part of their retirement and financial plan.

Investors value stock in Walmart at about $106 per share because of the earnings of the company and the annual $2.12 per-share dividend. As its last fiscal year ended Jan. 30, 2019, Walmart reported sales of $516 billion and earnings of $8.38 billion, a profit margin of 1.62%. Like most retailers, Walmart operates on a low profit margin.

Walmart is the nation's largest private employer, with 2.2 million employees. Spreading the $8.38 billion of earnings over the employee base, the average contribution to profit per employee is $3,809. On a per-hour basis, this comes out to $1.83 per hour. That does not leave much room for pay increases.

Returning to the Bernie Sanders argument, we can now see that the Walton family has substantial constraints on its ability to increase wages. A large pay increase would throw the company into a loss position, eliminating its ability to pay dividends and eventually making its stock worthless. Millions of average American investors would lose $145 billion from their family savings and retirement plans, and the 2.2 million employees would end up unemployed.

We cannot tell if Walmart can afford to make some pay increases, as it has in the past few years. We do know that the simplistic socialistic arguments of Bernie Sanders would lead to the destruction of the largest retailer in America and ultimately harm those he says he wants to help.

The same type of argument prevailed in Venezuela, once the richest nation in South America and now the poorest due to socialism. Don't think it can't happen here. Take Sanders and his followers seriously, or you too may end up in the streets begging for bread.

Stand up for free enterprise and individual freedom while you still can.

Ron Allen is a Christian businessman, CPA and author who serves in local, national and international ministries, spreading a message of reconciliation to God, to men and between believers. He is founder of the International Star Bible Society, telling how the heavens declare the glory of God; the Emancipation Network, which helps people escape from financial bondage; and co-founder with his wife, Pat, of Corporate Prayer Resources, dedicated to helping intercessors.

To contact us or to submit an article, click here.

Get Charisma's best content delivered right to your inbox! Never miss a big news story again. Click here to subscribe to the Charisma News newsletter.

Five ways to deepen your relationship with God, increase your faith and save money!

  • Deepen Your Relationship with God with a FREE eCourse: Click Here to view all of our free e-Courses. Favorite topics include Fear, Forgiveness, Holy Spirit, Supernatural, and How to Hear God.
  • Super Discounts and Close-Out Specials: Click Here to view all our bundles and close-out specials and save up to 86%! Prayer, Holy Spirit, Anointing, the Supernatural and more.
  • God Wants to Anoint Women Now: Rise up and enter the anointing of Deborah, Anna, Esther, Ruth and Hannah. You were called to go higher. Click Here to learn more.
  • Change Your Atmosphere and Circumstances Through Prayer! John Eckhardt's prayer bundle gives you six powerful books to help you pray and change any situation. Click Here.
  • HUGE Bible Sale!: Click Here to save up to 50% off a great selection of Bibles. Plus, get a free gift with each order!

Subscription Special: Subscribe to Charisma for Only $24.97 and get a free gift. With your subscription, you'll receive Born For Significance by best-selling author Bill Johnson. View Offer

Attention Pastors and Leaders: Leadership training and development are crucial for success. Enroll in a FREE 1-hour leadership mini-course by Dr. Mark Rutland. View Details

Charisma News - Informing believers with news from a Spirit-filled perspective