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Thread: Costco Proves Republicans Wrong By Paying a Living Wage and Watching Profits Soar

  1. #1
    Senior Member DiabloViejo's Avatar
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    Feb 2012
    New Jersey, USA

    Exclamation Costco Proves Republicans Wrong By Paying a Living Wage and Watching Profits Soar

    Costco Proves Republicans Wrong By Paying a Living Wage and Watching Profits Soar

    By: Jason EasleyMar. 12th, 2013

    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.

    “Sometimes people don't want to hear the truth because they don't want their illusions destroyed.” ~Friedrich Nietzsche

    If there is a dangerous forum ... that's the one. -- LWW (referring to BD NPR)

  2. #2
    Senior Member
    Join Date
    Oct 2005
    Ballarat Australia
    Sounds good -- but something iz fishy.
    If Walmart's prices go up then surely Walmart iz korrekt in saying that Walmart's sales go down.
    Higher pay might = better efficiency (sounds ok). But if all companys payed more, then efficiency would go down, surely.
    $11.50 per hour aint much -- in ozz the legal minimum iz about $19 per hour.
    Last week i woz talking to an idiot, he haz been unemployed since he woz sacked in hiz last job, and he had just started a new job where he got $25 per hour plus penaltys and overtime on top of that, for a simple labouring job at a small brick faktry in a small city.

  3. #3
    I firmly believe that to have a successful company you need to to have happy employees, believing Costco has no ulterior motives, would be just ignorant. Costco is a business, and this hike in minimum wage would increase costs for competitors. Costco has nothing to worry about since they already pay a base of $11.50.A short term loan can help you pay for things until you get a pay increase.

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