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Old 03-12-2013, 07:54 PM   #1
MavsFTR
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Default Costco Proves Republicans Wrong By Paying a Living Wage and Watching Profits Soar

http://www.politicususa.com/costco-p...fits-soar.html

Costco is proving Republicans and the Wal-Mart wrong by paying workers a living wage while also earning record profits.

While Wal-Mart experienced February sales that were considered, “total disaster,” Costco’s earnings for the second quarter of the year climbed 39%. The New York Times reported, “Costco Wholesale’s net income for its second quarter climbed 39 percent as it pulled in more money from membership fees, sales improved and it recorded a large tax benefit.”

Costco CEO Craig Jelinek openly supports raising the minimum wage to $11.50 an hour, “At Costco, we know that paying employees good wages makes good sense for business. We pay a starting hourly wage of $11.50 in all states where we do business, and we are still able to keep our overhead costs low. An important reason for the success of Costco’s business model is the attraction and retention of great employees. Instead of minimizing wages, we know it’s a lot more profitable in the long term to minimize employee turnover and maximize employee productivity, commitment and loyalty. We support efforts to increase the federal minimum wage.”

Costco is proof that the Republican idea that labor must be stomped on in order for our economy to prosper is wrong. It is possible for companies to earn record profits while respecting their workers and paying them a living wage. Wal-Mart embodies the conservative ideology that the country functions best when wealth is concentrated at the top. To match the Walton family’s fortune, an average Wal-Mart employee would have to work for the company for 7 million years. This model is what Republicans are advocating for the entire country, and it is failing to lead to prosperity.

Given Costco’s record profits, Wal-Mart’s blaming of the payroll tax and gas prices for their decline in sales doesn’t wash. Costco’s customers also faced higher gas prices and payroll taxes, but their sales were up six percent during the first quarter of the year.

Despite what both Wal-Mart and Republicans have been saying, companies can prosper and still have a conscience. When companies pay a living wage, workers benefit. When workers make more money, they spend more money. When people spend more money, the economy is stronger. When the economy is stronger, the nation as a whole benefits.

The economic virtuous circle that Republicans and their corporate benefactors thought they killed is alive, well, and living at Costco.
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Old 03-13-2013, 04:19 AM   #2
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Yea, lets jack all wages to 20.00, couldn't hurt. Typical phase one economic thinking by liberals. Doh, doh, this works here, it will work everywhere.

First bogus argument is comparing Costco to walmart, last time I looked, there wasn't a membership fee for walmart.

If you want to do a little phase two economic thinking try here. Without the partisan bull.
http://www.thedailybeast.com/article...ke-costco.html

A clip from the link. Leave to a democrat to think everyone is rolling in dough. And promoting policies that hurt the very people they claim to help.

"Costco's higher revenues are also a function of their demographic. Costco shoppers have an average income of $85,000--not surprising, because Costco tends to locate itself in affluent suburbs. Walmart shoppers are what the firm calls "value driven shoppers" which is to say, there's not a lot of spare money lying around the house, just waiting for an opportunity to buy a 6-lb wheel of Camembert. Value driven are very price conscious, and willing to forgoe things like service or artful displays in order to shave an extra 50 cents off the weekly shaving cream budget. If you've been wondering why Walmart seems serenely unworried that last Friday's labor action will touch of a boycott, this is why. If you took all the people in my twitter feed expressing excitement about a new era of labor organizing last Friday, I'd be very surprised to learn that they had spent as much as a thousand dollars between all of them at a Walmart last year. "
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Old 03-15-2013, 09:30 AM   #3
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i am not entirely convinced by the daily beast arguments... but more fundamentally, what Costco says is that they find it profitable to increase teh wages that they pay above the norm, so that they can retain workers and focus on their productivity withut as much turnover. That is inherently not a model that can be expanded to the economy at large, if EVERYBODY raises wages, then you are no longer paying above the norm, and are no lonoger getting the turnover stability that Jalinek says is so important to the cosco model.
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