Thursday, March 19, 2009

Walmart/Cafe Hayek

From the Cafe Hayek blog---I make no additional comments to what was written. I may not agree totally with Libertarian or Austrian Economics leanings but he is "spot on' in the most direct definition.

Obscene bonuses
Russell Roberts

Can you believe this? (HT: Jeff Bliss):

Wal-Mart Stores Inc., the world’s largest retailer, plans to award $2 billion this year to U.S. hourly workers in bonuses, profit sharing, discounts and 401(k) and stock-plan contributions after sales jumped in the recession.
Payments to employees include $933.6 million in bonuses today, spokeswoman Daphne Davis Moore said by phone. Workers will also get $788.8 million in profit sharing and 401(k) contributions this year, Chief Executive Officer Mike Duke told workers in a memo.
Wal-Mart recorded its biggest sales ever in the fourth quarter, boosting revenue in the year through January by 7.2 percent to $401.2 billion. U.S. comparable-store sales jumped 3.3 percent last year as the Bentonville, Arkansas-based retailer sold more groceries, $4 medicines and flat-panel televisions to consumers pinched by the recession.

Don't they know there's a recession going on? How dare they award their employees for doing a good job? They should all give a bunch of the money back to the government. What? The bonuses aren't being funded by taxpayers? How yes, I remember. This is how capitalism once worked. Successful companies rewarded their employees and lousy companies disappeared.

1 comment:

Robert Miller said...

When AIG gave out bonuses which they were contractually obligated to give and permitted to give by Christopher Dodd, Obama said he was "outraged." He immediately wheedled and threatened to get the bonus money back.

When North Korea violated UN Resolutions by detonating a nuclear weapon and firing missiles capable of carrying warheads, Obama said he was "gravely concerned." He did absolutely nothing about it.

Tell me, is this the "judgment to lead" and "change we can believe in" we were promised?