[CS-FSLUG] PD: Re: Christians taking action...
Timothy Butler
tbutler at ofb.biz
Sun Aug 20 15:51:29 CDT 2006
> This is a simplistic view of the system. One which most fighting
> for a
> "living wage" espouse.
I am not fighting for a "living wage," quite the contrary, I see
that a "living wage" too demotivates people. However, I am trying to
be practical: a certain, significant portion of Wal-Mart employees
are on the state medicaid rolls. The value of the services provided
by the state are also significant. If Wal-Mart could not pass these
costs off to the state, they would have to raise their prices and
hence could not as easily undercut those who provide the services to
begin with.
This could be seen as a call for more government regulation or less.
I might advocate that those working for Wal-Mart must surrender
rights to Medicaid (hence internalizing the externality to the
individual) or that Wal-Mart employees who are on Medicaid would have
their Medicaid exclusively funded by a tax applied to Wal-Mart
(internalizing the externality to Wal-Mart). The latter probably
makes the most sense. Since I don't shop at Wal-Mart more than maybe
once or twice a year, why should I be the one footing the bill for
the medicaid provided to Wal-Mart employees? It makes much more sense
for Wal-Mart shoppers to pay it (which is where the cost would end up
in either case since (many) workers would either demand more pay or
Wal-Mart would pass the tax on to the consumer).
Again, the only reason for advocating this is that the market's
ecosystem has already been tainted by the existence of the socialized
service (medicaid). Insofar as everyone equally foots the bill for
this service, Wal-Mart faces no market force to change the situation
to one where the government provides less services.
> But things are much more complex than that.
> What about the teenagers that want a little income, but are covered
> under the family benefit plan? What about the retirees who are mostly
> covered by their retirement plans, but want something to do or a
> little
> extra income?
Sure, there's that too. But, while there are a significant amount of
retirees and teens working at Wal-Mart, they are not the majority.
Many places provide healthcare only if the person isn't covered
under another plan. As such, any attempt to redirect the cost of Wal-
Mart back to Wal-Mart and its patrons should be done on the basis of
how much Wal-Mart is costing the system, not how much it would cost
if every Wal-Mart employee needed health insurance.
> These people will easily work for under the "living wage"
> (which in your example is $10/hr) because they don't need the
> benefits.
$10 is a figure I pulled out of the air. Again, note if John goes to
work for the supermarket instead of Wal-Mart, he may not need
healthcare (he's already on another plan), and hence it will not be
provided to him. The primary difference in costs for Wal-Mart versus
the supermarket is for the employees that *do* need healthcare. In
the case of the supermarket, they provide the coverage, and hence I,
as the consumer, choose whether to "pay for that coverage" based on
whether I shop at that store. In the case of Wal-Mart I have no
choice, since I "pay for that coverage" through my taxes every year.
Again, remember: the market already has a socialized force. I
advocate an attempt to minimize the amount of that force rather than
rewarding companies that drive more people into the socialized
system. I want more free market forces, not less.
> I'm not saying that it is good, but just that things are more
> complicated than as presented.
Right. But, in analyzing a market system we must almost always use
Ockham's Razor. It is too hard to examine every force. If I use a
generality, I probably do not mean it is true in every case.
Yes, someone will work for $5/hr if need be. BUT, if one store is
offering $9/hr. (including benefits, so maybe only really $6 in cash)
and another is offering $7 (but no benefits), a person might take the
job at $7 and then go on the state roles to receive healthcare
services. See, the market is damaged. People are demotivated to take
the job that provides the benefits because the immediate cash might
be better otherwise. Nevertheless, the overall situation is worse,
since the taxpayer is subsidizing the person to receive more cash. If
those who could not afford health care simply did not get it (not
that I am advocating that), the person would, in most cases, take
the job with benefits despite less "real cash."
Point: Wal-Mart is generally not creating jobs, but replacing jobs
that offered more complete packages in exchange for higher prices. In
the end, consumers do not save much (if anything) but instead pay
indirectly (through taxes) instead of directly.
>
>> What we know about the reality of socialism in the fallen world is
>> that it is not Biblical, it enslaves the lazy to dependency and the
>> productive to the support of the lazy.
Precisely. And that is what Wal-Mart is benefiting from.
-Tim
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