Wal-Mart Is Cutting Insurance For 30,000

So the headline reads in today’s War Street Journal. The Journal continues to prove its scamper to the left. Subtle, yet still guiding public opinion to the conclusion that big companies hate their workers and want them to suffer.

Wal-Mart needs to turn a profit in order to continue providing jobs and affordable goods to consumers.

The root issue is not, as braindead conservatives might proclaim, that Obamacare is poorly run. It is that any product not purchased by the user’s funds cannot be priced at a proper level to distribute resources to their most efficient use.

Terry Jeffrey pointed out some facts that expose the reasons why medical care is such a big issue.

  1. 107,581,000 people were “insured” by government health plans before Obamacare existed. 34.3% of Americans.
  2. In 2013, 93.1% of Americans 65 or older were on Medicare.

Then figure how often people over sixty-five use a doctor’s services compared to (what is still) the rest of us. That leaves only a very small part of medical expenses subject to market forces. We can’t blame free markets, greedy corporations or the failure of capitalism for high healthcare costs. The blame has to go on the usual place for universal maladies: big government doing what private individuals can do better.

Advertisements

2 responses to “Wal-Mart Is Cutting Insurance For 30,000

  1. Here’s another reason as to why Walmart can’t necessarily be competitive in the wage market. If they had to pay a U.S. industry average medical benefit premium per employee, they couldn’t afford to be “Walmart” anymore:

    Apple’s annual profit per employee is $480,199 ($38.56 Bil. and 80,300 employees)

    Exon-Mobil’s annual profit per employee is $454,667 ($34.10 Bil. and 75,000 employees)

    Microsoft’s annual profit per employee is $172,153 ($22.07 Bil. and 128,200 employees)

    Walmart’s annual profit per employee is $7,023 ($15.450 Bil. and 2,200,200 employees)

    That’s right, Walmart makes only about seven-thousand dollars in annual profit per employee. A competitive medical benefit offering, quite likely, would cost Walmart close to what they make in profit per employee, assuming Walmart pays about 50% of the premium.

    • So Wal-Mart exploits employees at an astronomically lower rate than these other companies and they are singled out as the most evil of them all. Just think of the savings if everyone paid their own medical costs and competition on a daily and tiny basis reflected demand and supply.

      I thought you’d call me out on the part about the WSJ being anti corporation.

      On Thu, Oct 9, 2014 at 3:47 PM, alternativebyfritz wrote:

      >

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s