How Costco’s High Wage Strategy Beats Walmart

Walmart’s “Sam’s Club” is similar to Costco in terms of how and what they sell. The stark differences between the two business models are below. Sam’s Club follows the Wall Street business model of redistributing income from the 99 to the 1 percent, and Costco management has rejected that Wall Street business model.

How Costco’s High Wage Strategy Beats Walmart

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The Costco Business Model: Opt out of the Wall Street Business Model

In other words, the Costco CEO has decided that redistributing income from his employees to his shareholders isn’t good for the employees or for the shareholders. It also isn’t good for the nation. The truth is simple. When you have a massive income redistribution from the 99 to the 1 percent via federal legislation, as in the last thirty-two years, you have a government and an economy that are sick with massive corruption. Costco has opted out of that business model. Thirty-two years ago, the 1 percent took home about 8 percent of the nation’s income, now it’s over 30 percent and growing, and it’s been stolen from the rest of us. Thirty-two years ago, the 1 percent owned 7 percent of the nation’s wealth, now they own over 40 percent, and it’s growing at the expense of us all.

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