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December 24, 2005

Wal-Mart's Pricey Mistake

Filed under: Economics, Law, Public and Private — Ray Daugherty @ 4:45 am

A mere two months after taking a courageous stand in favor of a minimum wage hike for other people's workers along with their own, Wal-Mart workers have taken a courageous stand in favor of irony: an Oakland, California jury yesterday found Wal-Mart liable for $172 million in compensatory and punitive damages for not providing their workers with state-mandated lunch breaks.

The issue is multi-layered for the private sector proponent: on the surface, it looks like yet another case of a state regulation clashing with market efficiency. Complicating the matter: Wal-mart, even as corporations go, are perfect bastards, from their estimated $1.5 billion in subsidies and property tax abatements to their preference for factories in union-prohibitive countries and notorious eminent domain abuse. Wal-Mart's libertarian apologists have their hands full defending their precious corporation as a business proper when the company behaves as though they'd prefer hefty regulation over light. The rest of us are left to ponder whether to just throw up our hands and write off the whole matter as a case of roundabout just desserts.

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