”the blindspot” - L’Hôte
High wages don’t mean low profits - and Costco proves it
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.
Bodie Broadus - The Wire - “Final Grades”
This was really the only thought crossing my mind after hearing the news that Wisconsin Governor Scott Walker had easily avoided being recalled. The Center for Public Integrity analyzed the fundraising totals:
How do you get your message out when the campaign finance numbers look like that? In what universe is that a fair fight?
Big picture: Yes, recall elections are strange and not usually predictive. And no, this doesn’t mean Obama and Democrats are doomed in the state in November. The exit polls (admittedly not always reliable) actually had voters who went to the polls today supporting Obama, 52-43.
But I don’t know how anyone could look at that graphic and not be concerned about the ability of Democrats to win elections in a world in which they will consistently outspent. Again: thanks a bunch, Supreme Court.
Bad election nights suck most when they’re happening. I get that. But the now inevitable acceleration of the labor movement’s decline hurts on a deeper level. Put simply: tonight was one of those nights when I questioned whether liberals would win the war.
