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That argument still doesn't seem coherent me. What "subsidy" is Walmart receiving that the Costco across the street is not? Walmart, after all, is paying worker
by twoodfin 10y ago
That argument still doesn't seem coherent me. What "subsidy" is Walmart receiving that the Costco across the street is not? Walmart, after all, is paying workers who otherwise would receive even more government benefits. Costco is paying those same workers $0.
- cmdrfred 10y agoI'm not sure what your question is. Costco runs smaller margins than Walmart due to the founders religious ideology that prohibits him from operating like Walmart. Walmart is by far a more profitable model (121 billion gross for Walmart compared to 15 for Costco). The wages paid by Walmart are below the cost of living, if they simply paid them without subsidy their employees would be often unfed and homeless. >Costco is paying those same workers $0. Why would Costco pay its competitors employees? (Beyond what is does already via taxes)