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freedom of choice politics

Beware any corporation that supports legislation that will cost them money.

Wal Mart is support new legislation that would require employers of a certain type to provide health insurance to their employees. Shouldn’t they be fighting that? After all, it is one of the things that is supposed to make them monsters. Yes, in their ideal world, they would not have to offer anyone health insurance at all. So why are they supporting this legislation?

It’s easy, this will hurt their competition (and potential competition) more than it will hurt them. The government will, in effect, strengthen Wal Mart’s position in the retail sphere. Yes, it will cost Wal Mart money, but it is the only way to make their competition incur costs that will hurt them. Usually Wally World is unable to dictate what costs places like Target and Costco have to deal with, but with the federal government’s power to regulate employee benefits, the way is opened to inflict damage to their competition.

This goes on all the time. Legislation that is supposed to help people ends up hurting by limiting competition. In reality, this is a way for congress and big companies to work together. The big business gets protection and the legislators get cheap political points. Sigh…

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