Costco Vs. Walmart and Reader Responses Over Minimum Wage
Mike (Mish) Shedlock | Apr 29, 2015 02:45AM ET
In regard to living wage Tesla (TSLA) responded ...
"You clearly have never run a business. if your employees are not able to live , or more importantly , just having living problems in general : they are 1) not going to work hard for you sometimes 2) might steal from you 3) might destroy your business property or otherwise not protect it from other thieves."
Quite frankly, that is ridiculous. If you are concerned your employees will steal from you or destroy your property, you should not hire them in the first place.
And if someone is worth more than the minimum wage and you are afraid they will go elsewhere, then you pay more than the minimum wage.
Look at McDonalds's (NYSE:MCD) or Walmart (NYSE:WMT). Did they suffer massive theft or property destruction by employees?
Both recently raised their base pay scale. Why? Because they could not attract a good work force at the wage they were paying. This is how it should work, not by living wage nonsense.
Carl responded ...
"Another important thing to remember about the minimum wage is that it removes from the workforce all those that are not worth the minimum wage. With a minimum wage, such persons automatically become government dependent."
Yep, exactly.
Ron ...
Reader Dave asks ...
"Hi, Mish. Costco (NASDAQ:COST) does pay more than Walmart as a big box business. It also gives employees all holidays off. How do they do it and WMT can't?"
The answer is Costco has a different model. It charges higher prices and its stores are generally in more upscale areas.
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