In Dicta

Wednesday, July 13, 2005

In defense of Wal-Mart

At Cafe Hayek, Russ Roberts hasan interesting article titled "Why Wal-May Pays Less." Ecerpt:

"I think a lot of folks think that Wal-Mart doesn't offer health insurance to all of its workers because Wal-Mart's mean or greedy or too interested in profits. A lot of people are mad at Wal-Mart because they pay less than the average wage in the economy.

There's a simple way to look at it. Wal-Mart doesn't offer health insurance or pay more than they do because they've found that they can attract enough workers with the pay package they currently offer. Period. For other companies, they have to offer health benefits to attract workers. They reason they offer health insurance isn't because they're socially responsible or kind or altruistic. They find that to compete for workers they have to offer it."

I couldn't agree more. Market forces at work here folks, nothing more to see, just move it along.


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