The official blog of the Libertarian Party
January 17, 2006
Maryland Forces Wal-Mart to Pay a Bigger Share of Employee Healthcare Costs
The Maryland legislature overrode a veto by Governor Robert L. Ehrlich and passed a law that forces Wal-Mart to spend at least 8 percent of their payrolls on health insurance or else pay the difference into a state Medicaid fund. The new law applies to companies who employ 10,000 or more workers in the state of Maryland.
Wal-Mart is one of four companies in Maryland that has at least 10,000 employees, but is the only one of the four that does not spend the required 8 percent on healthcare costs. Maryland lawmakers insist they are not singling out the nation's biggest retailer. State Senator Gloria G. Lawlah, a sponsor of the legislation, stated, "This is not a Wal-Mart bill, it's a Medicaid bill."
The justification for the passage of the new law among Maryland lawmakers is the problem of rising Medicaid costs. The Maryland legislature believes companies like Wal-Mart are not contributing their fair share in providing health benefits, instead shifting the burden to state governments.
Wal-Mart aggressively lobbied against the bill in the months leading up to its passage. Mia Masten, a Wal-Mart spokeswoman, believes "everyone should have access to affordable health insurance, but this legislation does nothing to accomplish this goal." She further added, "This is about partisan politics and this is poor public policy driven by special-interest groups."
Critics of the bill say the Maryland legislature is sending the signal that the state is anti-business and would open the door to increased state regulation of healthcare spending by private companies, the New York Times reported. Senator E. J. Pipkin said the newly passed law sends the message to companies, "Don't come here." Wal-Mart executives are now reconsidering building a distribution center on Maryland's Eastern Shore and may go elsewhere in light of the bill's passage, according to the New York Times.
Conservative blogger, Michelle Malkin comments on the story and labels it as a "War on Wal-Mart" and provides a link to a story that shows how the anti-Wal-Mart campaign actually hurts low-income families and workers.
Posted by at January 17, 2006 02:39 PM
Reader Comments:
Well it is a state issue, and it doesn't violate federal law.
Now with supporting a free-market, Walmart has already stated it will not build it's new distribution center, so there are jobs lost, and Walmart could also pull out of Maryland entirely, giving the state an additional 10k unemployed citizens plus all the residents who will no have access to low cost goods (through them). Then the citizens could vote their pleasure or displeasure with the politicians who enacted the legislation.
They most likely woudl not pull out b/c they will still profit even with increased healthcare costs, but it would be interesting to see what woudl happen if they did.
Well, I'm not usually for government meddling in the internal affairs of a company, but I think Wal-Mart is sort of an exception. If they're going to accept corperate welfare and use government money to strangle small towns, they should at least provide decent health care. I read somewhere that most of their employees make less than 12 grand a year, but their healthcare plan has a $1000 deductible. If Wal-Mart were actually participating in the free market, I'd trust the market to make them clean up their act. But since everything at Wal-Mart only seems cheaper because we've paid for a lot of it in fuel subsidies and corperate welfare, I don't have much sympathy. It doesn't make sense for something from 9000 miles away to cost less than something from 200 miles away. It damages small economies and is pretty much impossible without a lot of government funds. I don't like the idea of my tax dollars going to the same company that's eating my town, turning potential small business owners into employees, and making the American economy as a whole less able to adjust to shifts in the market. Wal-Mart is akin to socialism on some levels. There. I said it.
You'll get no argument from me to end all welfare, corporate or otherwise.
It seems to me everytime something goes wrong, WALMART is mentioned. HMMM
Libertarians all over the blogosphere are commenting on this and you cite Michelle Malkin?
That's pretty pathetic.
Wal-Mart is a libertarian's worst nightmare. The only principled method of dealing with such a beast is just not shopping there...PERIOD!!!
Wal-Mart is a business participating in the free market. Beyond ending any government subsidies to them, I don't see what the hell business it is of anyone's how they run their business. The heart of libertarianism is us minding our business about how other people run their business. Wal-Mart bashing is absolutely ludicrous. They are a successful company. What their employees make in compensation is non consequential. Their employees are free to work or not to work at Wal-Mart. There are many available avenues to obtaining an education or a vocational skill that will make you useful to somebody who will pay higher money to you for that education or skill. Take advantage of these avenues and opportunities. Don't bash Wal-Mart because your life sucks.
Just an aside, that last comment is addressed to Wal-Mart bashers in general and not to any of the previous posters in particular.
What are the other three 10,000 employee companies in the state, and why are those companies still doing business in Maryland? I hope Maryland keeps passing ridiculous laws like this and forces those companies and Walmart out.
I understand how many people feel about this, that this is an unneccessary intrusion of the government on Walmart and Walmart's business practices. In this case I personally feel that this type of action is appropriate for a few reasons. Walmart, for many years has been undercutting competitors, many of them are small businesses (If I had a link handy I would put it in, but at the moment I don't have one). I suspect many of these companies would understand that Walmart would have a competitive advantage over them because of their purchasing in bulk, but this presents a whole seperate sort of problem.
Walmart, if this article is accurate, has a sizable number of people obtaining healthcare from the state, provided to them by the taxpayers. I suspect that 99% of the people here who have a business would be livid if they found out the reason that their competitor was able to undercut them in price was because they were having the state taxpayers provide their employees with healthcare.
If Walmart honestly believes that the state should be providing healthcare to workers I expect to see them pushing for congress to provide a Universal Health Care system so that everyone can get the healthcare that is obviously satisfactory for their workers. This would be the honest thing to do, but there isn't a chance that this will happen. Walmart is simply trying to push their competitors around with this reduction in labor cost.
There are many Americans that have never learned the lesson of the 1930s and from Franklin Delano Roosevelt's New Deal. Anytime, government meddles in the private sector it causes problems. It causes problems in terms of output, employment, the affordability of benefits and the cost of doing business.
The Maryland legislature, in my view, passed this law because they wanted to please the labor unions, which is Walmart's biggest enemy. This law will cause not only Walmart but other companies to relocate elsewhere. Companies will leave in droves out of Maryland. This happened in New York during the 1980s and 1990s when the legislature passed and the then-governor signed simular laws there placing an enormous burden on businesses. It happened in New Jersey, when the legislature passed and the Governor signed laws resticting the auto insurance industry there. Auto insures left in droves.
We are seeing it right now, throughout the country where federal and state restrictions are so burdensome to businesses, that some have no choice but outsource to other countries which have little or no restrictions. It is sad.
Libertarians, when it comes to the ecomony and businesses, have here a great opportunity to educate the public about the dangers of government restrictions on the private sector. I believe libertarians should seize this opportunity and make the best of it. Many minds and hearts will be changed.
Mark B,
You're right, it's nobody's business how Wal-Mart runs their business if they aren't hurting anyone. I don't think they're about to invade poland or something. I'm simply arguing that Wal-Mart is no longer a "business" in the traditional sense of the word. Wal-Mart is a symptom of the economic disease that's preventing real free-market capitalism from working in this country. Stuff at Wal-Mart doesn't cost less. It's just that we've already paid for part of it in taxes, and we don't have a choice on the matter. Then we find ourselves in a position where it makes little sense not to buy things we're already paying for. And it's not just Wal-Mart, it's every business that survives on government assistance and forces us to foot the bill for its fuel consumption, resource mishandling, and employee healthcare. Half the people who shop at Wal-Mart don't notice this, because they see a lower sticker price, and they think they're getting a great deal. They don't realize that a lot of their taxes are going towards making this stuff seem cheaper. The reasons behind this are unclear, but I heard once (and this is just between you and I) that most Americans aren't economists, don't read the newspaper, and have little if any understanding of how their government works. So we aren't whining because our "lives suck" as you so tactfully put it, we're whining because the government is manipulating the natural ebb and flow of our economy to fatten someone elses pockets with our tax money against our will. Hope that clarifies.
Why do businesses even get money from the government? Not only is this a waste of government money, but it also makes an unfair playing field. In addition, it is totally immoral. Why are we paying money to private businesses through taxes?!? If you think about it, there are communities in this nation that don't have a Wal-Mart. The people in those communities probably don't benefit from the Wal-Mart, yet they have to pay money to it! Personally, I think that is unfair.
In addition, with the health care costs, Wal-Mart should not be obligated to provide health care to its employees. There are many health insurance programs out there outside of Wal-Mart, so it isn't an obligation for Wal-Mart to provide health insurance for its employees. Same thing goes with pensions. People can invest extra money from their jobs into their own investment accounts, and the company has no obligation to give people pensions.
Anyways, that's the end of my rant. Thank you for reading.
They don't only get money, they pay out tons of it as well in graft to the Republicrats. Anybody know what a "lobbiest" is?
Life as we know it is unfair.
We pay taxes for big fat government to enjoy a lavish lifestyle while we bend over and take it real hard.
These people are surround in DC and their people and immune to the outside of their world while the rest of us suffer.
Eminent domain, with the exception it doesn't affect the people in Capital Hill.
Taxes, I believe they get certain benifit with their job status while the rest of us are cattle that cater to them.
People go to war get killed and yet people are more worried about abortion then the people in war.
In California and areas of Nevada are considered Mexico. Mexican groceries, stores in spanish NOT ENGLISH. Banks, IHOP pancake house and other restaurant hire only mexican/spanish.
A lot of clothing stores are selling and catering to the mexicans.
Muslim want to destroy liquor stores have doctors perform surgery such as mutilation to little girls they refuse because it is their custom. They want us to conform to they way.
We support other countries babies such as illegals who come here and use our health system and we pay for them and we suffer.
THIS IS SUPPOSE TO BE ENGLISH SPEAKING AMERICA.
WE HAVE TO MANY MINORITY HERE.
Should we have muslim voted in congress we are in deeeeep trouble
First, let me comment that Wal-Mart complaining about "special interest groups" meddling with the market is hilarious. The graft they pour into the pockets of state and federal officers would probably pay the entire healthcare costs of their entire national staff.
That said, this is a bad law, and Maryland will probably learn an ugly lesson (assuming Wal-Mart plays hardball and pulls out of the state). Senator Pipkin is absolutely correct. Yes, Wal-Mart's business practices are beyond reprehensible, but more than any government favors the one thing that keeps the Beast running is our (generally speaking) continued employment at and patronage of this business. Religious zealots have moved businesses, broadcasters, etc, to radically change practices, and they are (I hope) only a shrill minority. We are not yet utterly fascist, so crying "victim!" is still inappropriate in the case of Wally World.
The problem with the state of Maryland is that it has a mercantile economy. Government and government contracted companies are the best paying employers in the area. Free market capitalism has been ran out by companies that want overpriced government contracts, government favors, and government protection.
Since Maryland's economy is heavily depended on Government funding, the middle class workforce are a majority of goverment or government affiliated workers, especially on the western shore. Therefore, it is not surprising that the Maryland legislature vetoed the govenor's veto and pass this bill. I suspect with much approval among Maryland cititzens
Please take note, the WalMart employees did not advocate Unionizing. Why is that? Some of you may very well know that in previous cases of employees trying to unionized WalMart, WalMart simply just shutdown operation. It would not surprise me to know that this was a law advocated by WalMart employees to their State law makers.
Maryland is probably second to the country of France in having a Statist favored citizenry.
Maryland will pay heavily. When government legislates to the extreme, businesses go elsewhere. That is the way of the world.
Walmart placing the differences [in their money] into Maryland's Medicaid Fund will not save Medicaid. As a Utilization Review Professional in the Medical Field, Medicaid has become a waste. Many states have had Medicaid Programmes that are expensive because of abuse from Government, abuse from the Insurance Companies, and of course abuse from the People. It is about time that the people of the USA face the facts and admit that they did their part in abusing Medicaid. We must remember Tennessee and the Tenn Care Fall Out. Please feel free to take a look at WSMV and other TV and Radio Stations in Tennessee that have talked about the Tenn Care Crisis. I also invite people to take a look at the book: "Cutting Health Care" and "Defensive Documentation/Documentacion Preventive" [Parts I and II] which explains why Medicine in the USA is failing. Again, the solution should be to leave Health Care to the Providers and Patients [and privatize Medicare and Medicaid]. As for Ms. Michelle Maulkin, the solutions should be less government [The Traditional Left and Right have been friends of Big Government]. As for English Only, I think we should have one country by encouraging Americans to marry amongst each other without regard to ethnicity, race, creed, and religion. With that, we could have E Pluribus Unum and the creation of the new American Person. I leave with the words of Chinese Dictator Hu Jintao: "The More Languages, the More We Could Conquer the World". After he has said that, the Chinese Govt. has been increasing their investments in the American Continent.
It should be noted that a certain earlier posting that contained very creative grammer and anti-immigrant rhetoric is not in any way reflective of the Libertarian Party's platform or doctrine. Just thought I'd throw that out there for any non-libertarians visiting the site.
It is very lame for one to see the grammer and decide who is Libertarian or not, because one chooses to have his head in the sand.
There is a different between logical thinking, seeing the big picture and one who chooses to live by some areas of illogical idea's that have gotten nowhere.
Chance is right. In fact you say that "THIS IS SUPPOSE TO BE ENGLISH SPEAKING AMERICA"
Maybe you should practice what you preach.
Gus English is my only language, sorry your comprehension is not in English. There are lower form of English that I am sure is more your speed, if your first language is english.
Maybe not, HG, but it is a bit of a shot in your foot to complain about "ENGLISH SPEAKING AMERICA" when you yourself appear to have a minimal command of the language you want others to use. I applaud your exercise of your freedom to say/type things which sound bold and insightful to the average 2nd-grader, and I applaud the freedom of others and myself to heap scorn on a display of stupidity. I love this country.
Now shine on, you crazy diamond!
For those who minds are shallow, and obviously cannot precieve the bigger picture of what is going on in the world, will not be able to comprehend any english above 2nd grade, it would be too overwhelming.
Look, buddy, nobody is picking on you because your grammer is bad. We're simply pointing out that the official party doctrine has nothing to do with hating immigrants and non-english speakers, or any other minority group. In fact, if you'd actually read our platform (which I'm inclined to believe you haven't) you'd find that we favor total religious freedom, and a relaxed immigration policy that embraces ideas and languages from around the world. Last time I checked, it was one of our major issues. We're just pointing out that your rhetoric does not represent the libertarian party on the off chance that someone might come to the site and read what you've said.
I am not concerned whether you pick on me or not. I am not that insecure enough, considering you do not know me nor are you equipped to decided if the grammer is up to par. The level of your intelligent tells me your mind is limited.
Maybe you need to go re-read your platform yourself and realize that there are Libertarians with a greater degree of common sense that exceeds your level of thinking since you choose to consider who are non-libertarians. What you end up getting is a division of Libertarians that do not agree, so you the party ends up dividing and going no place.
Boy emotions can fly around on the internet. By the way I just want to remind y'all that "fighting on the internet (especially a libertarian blog) is like running a race in the special olympics, even when you win your still a retard"
Other than that, my thoughts on the whole wal-mart deal are kinda simple. They're a big business that is going to screw someone to get their piece of the market share. If they can run off the mom and pop stores for a healthy bottom line, they will. They're not evil they've just evolved, so they can compete in the market. The anti-walmart critics are just like the Bill Gates critics. They seem more focused on the fact that the companies their criticizing (sp?) are successful, instead of focusing on why. Truth is in the Libertarian party is the best cure for these greed based companies. Only because Libertarians have the best platform for allowing small businesses to succeed, and compete!
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Well it is a state issue, and it doesn't violate federal law.
Now with supporting a free-market, Walmart has already stated it will not build it's new distribution center, so there are jobs lost, and Walmart could also pull out of Maryland entirely, giving the state an additional 10k unemployed citizens plus all the residents who will no have access to low cost goods (through them). Then the citizens could vote their pleasure or displeasure with the politicians who enacted the legislation.
They most likely woudl not pull out b/c they will still profit even with increased healthcare costs, but it would be interesting to see what woudl happen if they did.
Posted by: Phil from PA at January 17, 2006 03:27 PM