There’s A Very Good Reason Wal-Mart Supports an Employer Mandate

Robert Book / July 01, 2009

Recent press reports, including a front-page story in the Wall Street Journal, have the news that Wal-Mart has signed a letter to President Obama endorsing the idea of an “employer mandate” – a requirement that employers offer health insurance to their employees.

Why would Wal-Mart – the nation’s largest employer – endorse such an idea?

Simple: It would cripple many of their competitors.

Much ink has been spilled on the effect Wal-Mart has on small retailers. Wal-Mart’s large size enables them to extract low prices from manufacturers, and that – combined with efficient, computerized inventory operations enables them to undercut – and sometimes drive out of business – small “mom-and-pop” retailers. (more…)