Description: The main idea of the following article centers on costco employee site. The author is going to share with us about the ways on how Costco and Walmart treat their employees, which contains a huge contrast. We can also see some more details about Sam’s Club.
I want to talk about Costco now, on one hand, we have Walmart executives caught in an email saying in case you haven’t seen a sales report these days, February month to date sales are a total disaster Costco Wholesale net income for the second quarter climbed 39%.
As it pulled in more money from membership, fees sales improved and it recorded a large tax benefit, the CEO Craig jelinek openly supports raising the minimum wage, not to the $9 President Obama has proposed, but to 1150 an hour.
David Pakman shared a lot of great points and statistics there, I wanted to share a few more with you, a Sam’s Club employee starts off at about $10 a week and makes 1250 after four and a half years.
A new Costco employee starts off at $11 an hour and makes nineteen fifty an hour after four and a half years, so there’s a huge contrast there, I have to go back to the noted socialist Henry Ford, he knew enough back.
Then you had to pay your employees enough that you could go ahead and buy the products, I think Henry Ford was some sort of modern political figure, he’d be disparage by a lot of people in talk radio.
On the right is crazed socialist being over for that talk while I appreciate the sentiment behind that, because the world economy has changed so much, if you pay your employees enough to afford the product, you’re selling that.
They’re not going to use that money to buy a competitor’s product back in 2012, last year, Walmart decided that they’re no longer going to provide any type of health care coverage to its part-time employees.
So if you’re working 24 hours a week, you’re not going to get any health care, as a result, we are seeing the government subsidize Walmart by basically giving them a public health care.
So this is a big problem, because not only are they not paying their employees a living wage, but at the same time, the taxpayers have to pay for the health care of these employees.
So I think that’s a big problem, but as I said, it’s very difficult to play devil’s advocate here, enjoy the irony of people who would claim in defense of the free market, what Walmart is doing is the right thing to do.
In fact, it’s not the free market that’s supporting them at all and they would characterize Walmart’s or employees in that situation as takers, the irony is gross, what’s running the world in our corporations? They’re larger and more powerful than governments.
As far as I understand most of the success of Walmart is due to the fact that they get almost all their products from China, the question that I want to end this segment on is to do corporations, have a moral obligation to take care of its employees.
There’s always this debate between libertarians and liberals, when it comes to morality within corporations that they’re treated as citizens, I mean that a corporation essentially has the same rights as a citizen.
I think the question of morality comes up the problem with the morality, the question is that I don’t think we all have the same moral compass, I think ultimately what I deem fair is not going to be deemed fair by someone else.
So you have a moral incentive the CEO of Walmart clearly this man sells guns online, they went on sale the day after the new mascara, I don’t want to know what his morals are, we can’t try to drive it on a moral argument, we can simply try to look at what effectively works and what doesn’t.
It seems fairly obvious that if we decide to abandon large swathes of our fellow citizens that we will wind up with cities being abandoned, which we’re going to get the phenomenon that we’re currently seeing.
Hopefully, the younger generation of people who are in business school now and are being influenced by this thinking of trying to create massive businesses that make their money, not by trying to upscale and maximize the amount of gouging they can do, but by figuring out how to bring costs down effectively to reach a wider market of people in need, then I think that might be one solution that makes this whole discussion maybe in 20 years unnecessary.