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The most utterly evil profit maximizing business would always prefer that the government mandated minimum wage is somewhere near what they pay their lowest paid

The most utterly evil profit maximizing business would always prefer that the government mandated minimum wage is somewhere near what they pay their lowest paid employees. How so? Costco in this case has always benefited from a happier, more loyal, consistent workforce because they have a job that many other service workers actually strive for. I fail to understand how reducing the advantage of their position helps maximize their profit.

forrestthewoods 14y ago
Because their profit margins remained unaffected by the change but their competitors already razor thin margins get significantly reduced.
- praxulus 14y ago
  I think you missed his/her point. Costco gets to have more motivated and more loyal employees because their pay is significantly higher than minimum wage. If minimum wage goes up, they lose some/all of the benefit unless they further increase wages.
AlbertoPier 14y ago
This is the same company that was for the higher taxes for the rich and then made sure to get a huge loan to pay bonuses ahead of schedule so the Costco execs and board members could avoid the tax hike. Hypocrites.
- Evbn 14y ago
  Over a 10-year horizon, that scheme only counters 10% of their goodness.
- corresation 14y ago
  Hypocrites I don't beleive that makes them hypocrites. I can simultaneous believe in higher taxes, while optimizing my own situation based upon the current tax code. The notion that the only people who can argue for higher taxes have to maximize their own exposure is not robust.
Tichy 14y ago
Obviously lifting the minimum wage would increase pressure on their competition. Maybe they can not operate as efficiently as Costco and having to pay their workers more would send them on a tailspin to bankruptcy (for example). It really doesn't make sense for a business to call for higher minimum wages (other than for PR and hurting the competition). If they believe in paying more, they can do so without a law.

forrestthewoods 14y ago

Because their profit margins remained unaffected by the change but their competitors already razor thin margins get significantly reduced.

praxulus 14y ago
I think you missed his/her point. Costco gets to have more motivated and more loyal employees because their pay is significantly higher than minimum wage. If minimum wage goes up, they lose some/all of the benefit unless they further increase wages.

AlbertoPier 14y ago

This is the same company that was for the higher taxes for the rich and then made sure to get a huge loan to pay bonuses ahead of schedule so the Costco execs and board members could avoid the tax hike. Hypocrites.

Evbn 14y ago
Over a 10-year horizon, that scheme only counters 10% of their goodness.
corresation 14y ago
Hypocrites I don't beleive that makes them hypocrites. I can simultaneous believe in higher taxes, while optimizing my own situation based upon the current tax code. The notion that the only people who can argue for higher taxes have to maximize their own exposure is not robust.

Tichy 14y ago

Obviously lifting the minimum wage would increase pressure on their competition. Maybe they can not operate as efficiently as Costco and having to pay their workers more would send them on a tailspin to bankruptcy (for example). It really doesn't make sense for a business to call for higher minimum wages (other than for PR and hurting the competition). If they believe in paying more, they can do so without a law.