Friday, October 28, 2005

Walmart Strikes Again

The CEO of Walmart is calling for an increase in the minimum wage. Why? He knows it won't affect his company, but it will help to further eliminate the competition. Lew wrote a great aritcle about it today.

From the article:
Thus has our CEO friend Mr. Scott discovered a viciously devious tactic. He sees a way to drive out the competition by doing precisely what Wal-Mart's biggest critics are advocating! And what will be the result? Wal-Mart's share of the market will go up, and its degree of cartelization over the mass consumer market will increase, not by market means but through government intervention. Then we can expect the left to once again fly into another hysteria about the size and growth of the company – totally oblivious to how they worked to bring it about.

Free-market advocates who have long defended Wal-Mart can only be disgusted at this shift in the company's methods from competing on market grounds to calling for the state to crush its competition. Even more disgusting is how the company can count on the economic ignorance of its critics to help do it.

The minimum wage should not be raised but abolished. If free competition and a non-monopolized market are what you favor, you too should favor abolishing the minimum wage. In a purely free market, Wal-Mart would discover that there are indeed limits to growth, and that others are willing and able to learn from its successes.


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