A Little Wal-Mart Logic

Maryland's Senate voted Thursday to enact a first-in-the-nation requirement that Wal-Mart Stores Inc. spend more on employee health care despite the governor's veto of the legislation. The measure, touted as a money-saver for the state-supported Medicaid program, now goes to the House for a vote.

Labor unions have said they are seeking similar legislation this year in at least 30 states.

The Democratic-controlled Senate voted 30-17 to overturn a veto of the so-called Wal-Mart bill last summer by Republican Gov. Robert Ehrlich. The measure now heads to the House, where the prospect of passing was less certain, though Democrats control that chamber as well.

Supporters of the bill said Bentonville, Ark.-based Wal-Mart, the world's biggest retailer, unfairly costs taxpayers money by spending less than 8 percent of payroll on health care. The bill requires all companies with more than 10,000 employees to spend that much or give the state the difference. Currently, only Wal-Mart would meet the criteria in Maryland.

Critics of the legislation called it a dangerous precedent that ultimately would cost Maryland jobs.

OK. Besides being a fascist(and I do not use that word easily...search my blog for proof)economic attack on business, just what does the great state of Maryland feel they will accomplish here? Do they truly believe Wal-Mart will pay this extortion? Anybody ever read Atlas Shrugged?
One of three things is going to happen here...1) Wal-Mart will simply close up shop and move to a less Soviet style arena as it did recently in Quebec when unionization was threatened, 2) Wal-Mart will add to the state’s unemployment lines by lowering its total employment to 9,999, or 3) it will raise prices in order to recoup its losses, thereby moving the cost of its employees health care to the citizens of the great state of Maryland(who of course, are paying for the same now only under a different name...Medicaid)
You see, business is not really that complicated. And it is made less so with a little empathy. Imagine, if you will, that you personally own a Wal-Mart store in the People’s Republic of Maryland. If you are a Liberal, forget for a moment that you only have the mental ability to win a job as a greeter, but suppose you actually own the store. If you are a Conservative...oh, never mind, you already understand.
Ok, so you have a store.
You offer decent products at fair prices to your customers.
You employ a good number of people from the surrounding area. Mothers who need part-time work. Retirees and the elderly who want a few extra dollars in their pockets. High school and college age kids working to pay for their forced auto insurance premiums.
Most of the jobs you offer are not meant to be career employment. In fact, if an employee is looking to make a career out of his job with you, he has taken a wrong path somewhere along the way.
Anyway, you are going along fine...offering decently priced items, making a mere profit of 3.5%(yes, that is correct, 3.5%),
and employing a few people as well. Seems to be a win-win-win situation.
UNTIL...until bleeding hearts and Liberals rear their somewhat less than attractive heads.
They say you are not paying your employees enough. They say the working conditions are deplorable. They say your employees are not receiving the benefits they so rightly deserve. They say you are closing down the ‘mom and pop shops’. They say you need to pay for the health care of your employees...NOW!
What would you do? Would you personally take the hit to your already below average profit?
I know what I would do, and I’m pretty sure any intellectually honest person would do the same. I would say screw the government.
Again here are my choices...
Close my store. Look at the great benefits my former employees have now. They get exercise walking to the Unemployment Office. That’s good for their cardiovascular system. They could get a good mental work out stressing about where there next great job will come from...hell, they can go back to school and get their GED.
Cut my workforce to below the statute required number. Heck, why not, those old foagies, should be at home watching reruns of Jeopardy anyways. They don’t really need jobs, just ask them. And if we let go of a couple single mothers, who’ll even miss ‘em. Shoot, they could pop out a couple more bastards thus increasing their Welfare benefits. A win-win situation the way I see it.
Raise prices. You see, much like corporations do not pay tax...they simply move the cost to the consumers, I would simply raise my prices to cover any loss I was to incur. Guess who’s paying for my employees health care now. You in the back...’the consumer’, you say? You win the prize.

Crossposted @ The Wide Awakes