In this hurting economy (which I refuse to call a “recovery” for obvious reasons), Liberals have constantly turned to claims that raising minimum wage law will help the economy. Especially prominent in these discussions is Wal–Mart. The store chain is treated like a Piñata. If the government will just smack it around a few times, suddenly free goodies will come out for all to scoop up.
Well, if people were satisfied with more jobs and lower prices, that idea might have some merit. But what they want is to demand that Wal-Mart pay more. The company is supposedly hiding swimming pools filled with cash that it refuses to use to pay employees.
In fact, Wal-Mart is just another company struggling in this economy. As Reuter’s reports,
Wal-Mart Stores Inc (WMT.N) is taking a number of steps, from closing poorly performing stores in Brazil and China to opening more smaller U.S. stores than larger ones, as it moves to improve results in the face of difficult conditions worldwide.
The world’s largest retailer sees a “tough” and “unpredictable” economy around the world, Chief Executive Officer Mike Duke said, a week after the International Monetary Fund trimmed its outlook for global growth.
The only thing I find shocking about this is the claim that Wal-Mart actually pay attention to the corruptocrat propaganda of the IMF as if it was real news. Surely they have their own ways of measuring the economy!?
In any case, they are obviously hurting enough to start experimenting with new business models:
Walmart U.S. said it is testing using its supercenter stores as “cross docks” to supply nearby smaller stores, a move that could help it keep goods in stock and cut costs. The system is set to roll out in the first of three unnamed markets in March.
Using the back room of a supercenter as a “little mini warehouse” for daily deliveries to smaller stores would eliminate the need to send 53-foot trucks from distribution centers to smaller stores, Walmart U.S. CEO Bill Simon said.
“I think it’s a fundamental shift in their real estate strategy” to look at things market-by-market rather than store-by-store and is a “sophisticated development,” said Stewart Samuel, program director at IGD, who attended Tuesday’s meeting.
I hope it works out for them; but it shows they are under real economic pressure. Whatever financial opportunities made them think that investing in Supercenters was a good idea, those circumstances have changed.
Will the Left back off from insisting they pay higher wages. Or will they continue to pretend that Wal-Mart is a Piñata awaiting their bludgeoning?
Already, one country has destroyed the opportunity of Wal-Mart by it’s over-regulation.
Wal-Mart is cancelling its plans for retail stores in India, a setback triggered by the Indian government’s regulatory morass that discourages foreign investment and unfortunately harms India’s poorest people.
The retailer giant once aspired to become India’s top retailer by 2015, a goal that became untenable as it became clear that Byzantine rules governing foreign ownership and management of stores were needlessly burdensome and uneconomical.
We have enough economic problems without legislagive bullies turning the US into another India.