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October 27, 2005
Always Low Tactics. Always
The Wal-Mart CEO who's stumping for a minimum-wage increase may or may not be economically ignorant. It could be that he's making those statements to win the support of the economically ignorant masses, but meanwhile his plan is to raise everyone's labor costs. Wal-Mart can easily bear a minimum-wage increase, but its competitors might not be able to bear it so well. Voila! The competitors are out of business, and Wal-Mart gains market share.
It wouldn't be the first time an established business or profession has used to its benefit government laws that at first appear contrary to its interests. After all, most licensing laws and regulations are enacted at the behest of those already established to keep out upstart competitors, but they are always sold to the general public as means of protecting the little guy. Why not tell the public you're trying to help them out by getting them higher wages while privately hoping that doing so will eliminate your competition?
Posted by Mike Tennant at October 27, 2005 01:58 PM
Comments
Excellent point, Mike. I thought of that as well, but couldn't articulate it in my short blurb.
This is exactly what unions are doing when the advocate raising the minimum wage. When was the last time you heard of a union worker making anywhere close to the minimum? Instead, they're legislating their competition out of business.
Posted by: jhorpeda ![[TypeKey Profile Page]](http://www.strike-the-root.com/blog/nav-commenters.gif){kind=small}
at October 27, 2005 02:28 PM
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