Friday, January 13, 2006

10,000 Wal-Mart Employees Can't Be Wrong

Maryland is trying to enact a brand new law. One that states that those companies with 10,000 employees (or more) in their state, must pay a certain amount of their payroll into health care.

Of course, only Wal-Mart has that many employees in state, but hey, the Democrats say that this legislation is not aimed at them. Surprisingly enough, I believe them. I think that the Leftists just put that 10,000 number in there, to make their first victim of this un-capitalistic practice Wal-Mart so that the effect would be more palatable to people. After all, it's Wal-Mart with billions in sales, and millions employed. What could making them pay a little extra to employee health care matter?

This is where the Lefties want things to stand. They want the people happy that they are legally forcing companies to give employees a certain amount of healthcare, because once that is legally acceptable, they can then start lowering that number. After all, if it's ok at 10,000 employees, then it's ok for 9,500, then 9,000 and before you know it for 10. One must remember that for this type of law there is no difference between 10 and 10,000. It is a random number, set high to make it acceptable, because it can only affect one company. That that one company is Wal-Mart is just a bonus in the Lefties eyes. In the same way that the minimum wage is set low to make it acceptable to the most people (I'm still waiting for the $2,000 per hour minimum wage, I could get behind that).

Of course the esteemed lawmakers in Maryland have failed to realize the simple realities of business. They are trying to pass a law that states that the business spends 8% of payroll on healthcare. Now, Wal-Mart has a few options for doing this:

  • Pay for it out of profits
  • Close stores until they are under the magic number
  • Pay their employees less

Gee, I wonder which I would do if I were in Wal-Mart's shoes. There is no way I would pay for it out of profits. That is hurtful to my shareholders. Even if I tried to pay my employee's less, there are artificial limits on how low I can pay them, which a higher minimum wage in conjunction with this health care tax would cause me convulsions. So that leaves the close stores until I'm under the magic number.

Yup, to keep from paying this particular tax, I will close stores, stopping jobs, and depriving thousands of consumers a cheap place to shop. After all, I would be in this for the money.

Who knows, Wal-Mart could do something different, after all, I'm not in charge over there. They could even attempt to question the constitutionality of this law. Unfortunately, capitalism, though a corner stone of our society, has no protection in the Constitution.

Sadly the labor unions are pushing this law in other places. If your state has the misfortune to be one of them, I would get in contact with your legislature. This health tax is not a good thing.

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