1. We subsidize low-paying employers through welfare programs like food stamps, Medicaid, and housing assistance. Corporations like McDonald's and Walmart take advantage of these programs by paying lower wages to their employees, collecting more profit, while the rest of us make up the difference.
2. A person who receives food, medical, and housing assistance is less inclined to work to earn money to pay for these goods and services. Therefore, McDonald's and Walmart must pay higher wages than they would absent the welfare services to induce such people to work, reducing corporate profits.
Which is true?
Ok, I'll bite. I believe that both are likely true. These are two opposing forces, and they reality is that wages probably reflect the influence of both.
That being said, there are probably other forces at work, which likely include the quality of the work experience, the accessibility of the benefits, and social views regarding the assistance and the employers.