Obama is hopeful other companies will follow the Costco model

President Barack Obama has hailed Costco as a company that “pays good wages and offers good benefits,” proving “that this isn’t just good for their business, it’s good for America.” 

At a time when the minimum wage and health insurance are hot-button political issues, Costco provides a rare example of how a company can succeed despite offering generous health coverage and paying higher wages than many competitors do. Neil Stern, a senior partner with retail consultancy McMillan Doolittle, notes that people often say, “‘The economy will be ruined if the minimum wage goes up, or goods will be priced higher if you have to pay your people more, or we can’t afford to do that.’ But Costco’s the example that says not only that you can do it, but you can build a thriving and successful company that also keeps its prices low.”

Read more at the Washington Post on why Obama loves Costco.