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Monday, January 25, 2010

Liberals Celebrated Wal-Mart Firing 11,000 Plus Workers.

http://www.marketwatch.com/story/wal-mart-up-as-sams-club-to-cut-11000-plus-jobs-2010-01-25?reflink=MW_news_stmp
Wal-Mart shares up as Sam's Club to cut 11,000-plus jobs

Because of the failing economy, Wal-Mart chose to terminate some employees in an effort to avoid bankruptcy and firing ALL employees.

The liberals celebrate the terminations as proof positive that big business doesn't care about the staff. The liberals would much rather see Wal-Mart go bankrupt and fire 2 million plus employees, thus making space for some unionized business to take it's place.

What the liberals can't possibly understand is how the economy works, and what it would take for someone to be willing to start a business.

To start a business with any chance of success, an individual must gamble with their own (or borrowed) money that they can create a business that will make enough of a profit that they will be able to pay all their bills and continue into the future. How do you make a profit? Selling a product for more than it costs to make. Part of that cost is labor. If the owner is not making a profit on the materials and labor, the business loses money and goes bankrupt.

What do unions do to help a business succeed? They force the wages to be raised. If the owner doesn't raise prices when his costs go up, he might as well close the business and fire everyone. So he raises the prices he charges for his products. If the consumer can't afford the increased prices, the owner loses money and closes the business and fires everyone.

You may now be asking yourself, how does this help the business succeed? The answer may surprise you. It doesn't help the business to succeed. It helps the business to fail.

Look at the State of California. Many of the jobs are unionized. Even in this failing economy, many union jobs are getting raises.

Aren't you glad that unions are part of the solution instead of part of the problem?

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