PicoBusiness

I find this quote rather silly:

Wal-Mart (WMT), the former poster child for corporate villainy, once again has surprised both its critics and its corporate peers by backing President Barack Obama’s plans to force employers to provide health insurance to workers, the Wall Street Journal reports

It’s funny because it’s completely backwards. Wal*Mart wasn’t a villain for paying relatively low wages – they offered jobs at certain wages, and people compete vigorously to take them. That’s hardly what one could call “villainy”.

On the other hand, backing Obama’s health care plan is absolutely villainous, because it is way for Wal*Mart to hurt their competitors who don’t currently offer health insurance (forcing them to raise their prices), and make it harder for new entrants to join the discount retail market. And if it’s harder for new entrants to join the market, Wal*Mart can raise its prices with less fear of competitive threat.