Wal-Mart controversy

Arnold Kling

Wal-Mart controversy

By Arnold Kling, Oct 29 2003

Wal-Mart is controversial. On the issue of labor costs, Steve Pearlstein writes,

I’m talking about a minimum wage that would put a family with two full-time workers above the poverty line in high-cost metropolitan areas — and no doubt put upward pressure on wages at places like Wal-Mart.

Or how about requiring employers like Wal-Mart to provide all workers with affordable health insurance, including part-timers and recent hires.

Kevin Broncato counters,

by working 8 hour days 7 days a week, both Mr. Zavala and his wife earned $400*52=$20,800, for a total family income of $41,600. In New Jersey, this doesn’t go very far, but it’s a far cry from what Mr. and Mrs. Zavala could have earned as a janitor in Mexico, and far exceeds the official poverty line in the United States.

For Discussion. What would be the consequences of enacting the reforms prosposed by Pearlstein?

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