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February 28, 2005
Reich--Keep Wal-Mart, But Regulate
Robert Reich has a column in the Times today. As Aaron mentioned in an email to me, it starts out pretty good, but inevitably (this is Reich, after all) goes off the tracks.
But isn't Wal-Mart really being punished for our sins? After all, it's not as if Wal-Mart's founder, Sam Walton, and his successors created the world's largest retailer by putting a gun to our heads and forcing us to shop there.
Not sure exactly what "sins" we're committing (from the context I suspect it's the sin of wanting inexpensive products), but I agree that it's silly to demonize Wal-Mart.
The fact is, today's economy offers us a Faustian bargain: it can give consumers deals largely because it hammers workers and communities.
As the old song says, it ain't necessarily so. In fact, today's economy delivers deals because it wrings unnecessary costs out of the system. As it happens, the business that I started last year is focused on this effort. But I am not trying to do it by cutting pay, but by getting workers to be more efficient. If, through technogical improvements, I can boost productivity by (say) 20%, then I can pay my workers (say) 10% more per hour and still increase my profits.
Reich descends into self-parody after that, with a panoply of suggestions that would reduce productivity and increase costs. As usual, it is sold to us on the basis that it wouldn't cost all that much:
A requirement that companies with more than 50 employees offer their workers affordable health insurance, for example, might increase slightly the price of their goods and services.
These provisions might end up costing me some money, but the citizen in me thinks they are worth the price.
The citizen in Mr Reich may feel that way, but the consumer in him probably doesn't agree.
Posted by pat at February 28, 2005 01:24 PM
Comments
Mr. Reich neglects to characterize what type of citizen actually resides inside him; it's a socialist citizen. The capitalist citizen in me says, I like good products cheap and refuse to screw around with successful capitalist companies. Every devout lefty believes this: Successful company=ripe for plucking.
Posted by: ProfShade at February 28, 2005 03:55 PM
Yep. Years ago a friend of mine was a lobbyist for NFIB (huge small-business association) and he said that mandated benefits like Reich proposes are simply tax increases in disguise.
Posted by: Pat Curley at February 28, 2005 04:25 PM
The operative word here is "regulate", in other words government control.
Posted by: DoctorDentons at February 28, 2005 06:00 PM