Thursday, July 20, 2006

Good News from Maryland, Stupidity in Arkansas

Maryland first: U.S. District Judge J. Frederick Motz has overturned the “Wal*Mart Law” , which would have required either a large increase in benefits costs to Wal*Mart, or a large increase in taxes to Maryland.

Now Arkansas: CEO Lee Scott comes out in favor of increasing unemployment rates for teenagers and unskilled labor. Technically, he’s called for an increase in the minimum wage, but unemployment is likely to be the end result (at least to the extent that the nominal costs of employment are increased to the point where they exceed the value the employee generates).

If Mr. Scott thinks that this will do anything to appease the unions and other lefty groups trying to ruin his company, he’s mistaken.

More BMD on Wal*Mart here and here.