Minimum Wage Business Realities
Why do some employers favor a raise in the minimum wage? Profit per employee plays a major role.
Costco is doing what Amazon just did, trying to play an ignorant public to help make the market more hostile for their own competitors.
Costco would love for the minimum wage to go up to a point that’s higher than the average starting pay of their competitors but below the starting pay at Costco. It has zero impact on Costco’s business model but will severely hurt the bottom line of others, like Walmart or Target.
Costco plays this off as if they are trying to help the people, in reality, they are aiming to hurt or even shutdown their competition, and they want to do this not through better business models but through legislation that comes from misguided economical theory based solely on emotions.
Amazon did the same thing when it lobbied for an internet sales tax. Many people thought that, “Oh, it must be a legitimate tax if the biggest online retailer is lobbying for it!”. What these people didn’t realize is that Amazon is building local warehouses and would now have to pay local and state sales tax and they wanted the government to levy an Internet Sales Tax so that they could ensure that their competition, who don’t have local warehouses, would have to pay taxes just like Amazon.
No one is better at playing politics than the CEOs of giant corporations. Always remember that and take what they say with a cargo container of salt.