Corporations must be allowed to make profit
A recent letter writer complains that the Walton family can afford to pay workers because of hoards of cash. Walmart is successful because management tries to operate in the most efficient manner, not like the government. An increase in the minimum wage, volunteered by management, was expected to lower profit. Walmart is the largest private employer in the country. Its merchandising expertise is one reason our economy has experienced low inflation for many years. But why stop at $10 per hour? Let’s pay everyone $50 per hour.
What would happen if Walmart couldn’t make a reasonable profit and had to shut down? There would be an army of unemployed people looking at the government for free stuff, and our taxes would rise further. Gov. Andrew Cuomo and President Obama don’t look at the true economics of their action. It just makes them feel better to spend other people’s money.
If capitalism is threatened, what’s the alternative? Venezuela, Cuba, North Korea? Red China has only come into the 21st century in the past few years because it embraced capitalism. Corporations must be allowed to make a profit or they will shut down. The outrageous taxes they pay make worldly competition difficult. But the politicians want to keep spending that tax money.
Anthony F. Frandina