WAL-MART BACKS EMPLOYER MANDATE?

Many free-market types have been confused as to why Wal-Mart, that shining symbol of capitalism at its best, would be in favor of a federal mandate forcing employers to provide health insurance with a government-decreed menu of benefits. Michael Cannon explains:

It all became clear when the lobbyist explained the reason for Wal-Mart’s position: “Target’s health-benefits costs are lower.

 Huh?

Let’s say that Target spends $5,000 per worker on health benefits and Wal-Mart spends $10,000.  An employer mandate that requires both retail giants to spend $9,000 per worker would have no effect on Wal-Mart.  But it would cripple one of Wal-Mart’s chief competitors.

Although I admire the Machiavellian cunning that led to this strategy, it’s still a mistake. Over the long haul, unfettered government meddling in everything from health care to the auto industry is a much bigger threat to Wal-Mart than Target will ever be.

You can’t feed your competitors to the big-government monster without eventually landing on the menu yourself.

Comments 1

  1. M. Roberts wrote:

    This move by Wally World has made me and my whole family look at buying elsewhere. Wally World employees mostly part time workers, with few perks. But I guess if we pay their insurance they are fine with that. I call out to the AMERICAN people, show them. We do not have to support them any more than we do the ones in Washington. Wally World, China and our government are tearing up our country. Buy AMERICAN made and get Washington out of your life. I live in Mississippi, come on states lets break away, remember “WE CAN”. lets turn it back on them.

    Posted 28 Jul 2009 at 8:34 am

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  1. From Wal-mart endorses employer mandate for competitive advantage | Independence Institute: Patient Power on 03 Jul 2009 at 3:04 am

    [...] (via Health Care BS) [...]

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