[lbo-talk] Re: WMT goes orgo

Miles Jackson cqmv at pdx.edu
Tue Aug 29 11:38:25 PDT 2006


Willy Greenfields wrote:


> I don't see this teleology, honestly. The drive to
> increase earnings doesn't necessarily require a
> Walmart-style assault on labor. Costco, which competes
> against WMT and its SAM's Club, follows a much
> different operating model. For the nature of the work
> completed by most of its employees, it pays what
> passes for a decent wage in this country (this is
> skewed a bit by the warehouse-type environment - more
> forklift and sideloader operators, for instance - but
> the basic point holds). Compare market performance of
> Walmart and Costco shares. Costco's not really being
> penalized for its 'generosity,' at least on a relative
> basis.

Walmart income for 2005: $11.2 billion Costco income for 2005: $1.1 billion

It seems obvious to me what type of management is facilitated by and handsomely rewarded in a capitalist economy.

Miles



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