Forbes: Wal-Mart shoots self in foot, decides health care is good

[MRT144]

The better comparison to Walmart would be Costco.

Yup and costco is lauded for how they treat and pay their employees.

[Colon™]

From what I've read, Wal-Mart's profit margin is about 4%. I couldn't find figures on their labor costs. But regardless... for the sake of argument, let's say Obamacare would cost them the maximum in that worst case scenario. To offset that, they could raise prices 2% across the board.

That package of toilet paper that costs $9.99... well, now it's 20 cents more! And everyone gets health care!

OH THE HUMANITY

20 CENTS

HOW WILL THEY EVRE SURVIVE?!?!?!

Hey, not trying to be antipathic to Obama here. I'm sure he'd prefer a single-payer system as I do. And you're right that the costs will eventually simply get passed on, but that doesn't mean the transition can't be painful.

[Ogie Oglethorpe]

Nothing says awesome like raising prices when everyone wages as a whole are decreasing. Sounds like a winning strategy.

[Dinner]

Yup and costco is lauded for how they treat and pay their employees.

Yep, and they still manage to keep prices low. Imagine that, low prices and they treat their workers well.

[Berzerker]

I dont know why business doesn't support single payer, seems like health insurance is such a huge cost of doing business

maybe because insurance companies are often tied in with banks, and banks control so much of the money supply businesses dont wanna anger them

[notyoueither]

You don't need a tinfoil hat to explain it, Berz.

I think it's much more to do with culture and that people in business are distrustful of government running anything.

[-Jrabbit]

Just got my renewal notice from Blue Cross Blue Shield.

Roughly a 15% increase.

If that trend continues, I'm only a few years away from my health insurance costing as much as my (fixed) mortgage.

[Sava]

I dont know why business doesn't support single payer, seems like health insurance is such a huge cost of doing business

maybe because insurance companies are often tied in with banks, and banks control so much of the money supply businesses dont wanna anger them

It's the banks and insurance companies. There's your answer. It's them versus the rest of the economy... and the country.

[MRT144]

You don't need a tinfoil hat to explain it, Berz.

I think it's much more to do with culture and that people in business are distrustful of government running anything.

Except the money spigot.

[The Mad Monk]

The better comparison to Walmart would be Costco.

No. Completely different animal.

[DaShi]

I'm not sure what percentage labor costs a lot of these stores had. Years ago when I managed a pizza hut, 20% was our target. Assuming a $2k per employee cost (the penalty for companies that don't offer insurance)... even if employees are making $20k, that's only a 10% increase. Overall, that means labor goes from 20% to 22%... assuming they pay the penalty for every single employee.

I'm sorry, but if the profit margins are that slim, those businesses were in trouble anyways. A 2% cost increase isn't the end of the world. I'm sure the fluctuation in oil prices (affecting fuel costs) is more a disruption than Obamacare would be.

And that's worst case scenario.

Sorry, but the "killing jobs" talking point just doesn't add up.

Hmm, perhaps you're simply not saying it enough?

[Captain ******* Kirk]

Just got my renewal notice from Blue Cross Blue Shield.

Roughly a 15% increase.

If that trend continues, I'm only a few years away from my health insurance costing as much as my (fixed) mortgage.

[Dinner]

The better comparison to Walmart would be Costco.

Or rather Costco and Sam's Club since both are membership stores. As it turns out Harvard Business Review did just such a comparison and Costco came out looking like a champ while Walmart looked tight fisted and stupid about basic policies wrt employees.

http://hbr.org/2006/12/the-high-cost-of-low-wages/ar/1

[The Mad Monk]

Doesn't surprise me. Costco has always impressed me much more than Sam's Club. Then again, they were always trying for the wealthier consumers.

[Hauldren Collider]

QFT