Downsizing, lower pay, reduced benefits — that seems to be the same story at one company after another, as if the sole point of business were to pull in one massive quarterly profit.
But then there’s our number of the day: $19.50.
That’s what a worker at Costco makes after four and a half years, according to Slate Magazine. It’s about $7 an hour more than employees with the same seniority at Costco’s competitor, Sam’s Club.
Some Wall Street analysts haven’t been happy about that or about the company’s generous health plan. No doubt, Costco could be making a higher profit. And yet, the company does just fine. The value of Costco stock has more than doubled since 2009, and the company’s founder, James Sinegal, said those wages buy the company a low rate of employee turnover and theft.
Costco’s generosity saw renewed publicity recently when Wal-Mart became mired in strikes over low pay and bad labor relations. Although Wal-Mart is admittedly a much bigger company, the Costco model proves you don’t have to squeeze employees.
Wal-Mart’s way is not the only way to do business.
Watch ‘Viewpoint with Eliot Spitzer’ weeknights at 8E/5P on Current.
And yet the company does just fine…
If numbers could persuade me that raising that rate injured job creation, I would reconsider my belief that the wealthy should pay more — because job creation is issue one. On the other hand, if the record established that raising the top marginal rate did not in any way injure investment and job creation, then those who have been unalterably opposed should be forced to reconsider their views as well. Analysis trumps ideology.
And we now have the analysis — a fascinating report just issued by the Congressional Research Service. The CRS is a nonpartisan entity that produces academic quality research to answer tough policy questions; its reports are put through a process of rigorous analysis before they are released. The bottom-line conclusion of the CRS report is this, and I quote:
“The reduction in the top tax rates appears to be uncorrelated with saving, investment and productivity growth. The top tax rates appear to have little or no relation to the size of the economic pie. However, the top tax rate reductions appear to be associated with the increasing concentration of income at the top of the income distribution.”
Watch Eliot Spitzer and Bill Maher talk about the right-wing media bubble tonight at 8E/5P on Current TV.
Krugman and Spitzer: a conversation your apolitical relatives need to hear (via Hullabaloo)
|—||Republican war against the weak: The brutal GOP campaign to eliminate the collective rights of individuals and increase the collective rights of corporations. - By Eliot Spitzer - Slate Magazine|