Report: Low-Wage Corporations Fuel Alabama's Affordability Crisis

Study finds major companies like Amazon and Walmart pay workers too little to afford basic necessities.

Published on Mar. 6, 2026

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A new report from the Institute for Policy Studies found that many of the largest and most profitable corporations in the U.S., including Amazon and Walmart, are not paying their front-line workers enough to meet basic needs like affording rent for a two-bedroom apartment or the average price of a used car. The report argues this low-wage business model amounts to a form of corporate welfare paid for by taxpayers.

Why it matters

Alabama still uses the federal minimum wage of $7.25 per hour, which has not increased in 17 years. This report highlights how the state's reliance on low-wage jobs from major corporations is contributing to an ongoing affordability crisis for Alabama families struggling with the rising costs of housing, groceries, and healthcare.

The details

The report, titled 'America's 20 Largest Low-Wage Employers and the Affordability Crisis,' found that none of the companies listed pay their front-line workers enough to afford the average rent for a two-bedroom apartment. At seven companies on the list, one year's wages aren't enough to pay the average price of a used car. Meanwhile, the report said the pay of the average CEO topped $18 million. The corporations are not keeping wages low because of tight profit margins - between 2019 and 2024, they spent a combined $260 billion buying back their own stock.

  • In January 2026, Sen. Robert Stewart, D-Selma, filed Senate Bill 171 to establish a state minimum wage of $10 per hour for businesses with more than 50 employees, which would take effect on January 1, 2027 if passed.

The players

Institute for Policy Studies

A progressive think tank that produced the report on low-wage corporations and the affordability crisis in Alabama.

Sen. Robert Stewart

A Democratic state senator from Selma, Alabama who filed a bill to establish a $10 per hour state minimum wage.

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What they’re saying

“Twenty of the largest and most profitable corporations in this country are not paying their workers enough to meet basic necessities. Many of them are having to rely on public assistance just to get by.”

— Sarah Anderson, Director of the Global Economy Project at the Institute for Policy Studies (Public News Service)

“If these companies had taken the money that they put into stock buybacks and put it into worker pay, they could have lifted a million workers up to the level that you would need to be able to afford a two-bedroom apartment.”

— Sarah Anderson, Director of the Global Economy Project at the Institute for Policy Studies (Public News Service)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This report highlights how the reliance on low-wage jobs from major corporations is contributing to an ongoing affordability crisis for Alabama families, raising questions about the role of corporate welfare, worker pay, and the state's minimum wage policy in addressing these challenges.