John Edwards' Potential Impact on the US Retail Industry

Strategic Insights -

Democratic presidential candidate John Kerry's running mate, John Edwards, has a spotty record on issues critical to the US retail industry. As a vice president, Edwards may influence policies that affect retailers, including labor laws, immigration, and minimum wage. His background as a trial lawyer and support for organized labor could raise concerns among retailers.

Key Takeaways:

  • John Edwards has a spotty record on labor issues, including opposing bills that would allow employers to hire permanent replacements for striking workers and voting to keep costly OSHA requirements in force.
  • Edwards favors increasing the national minimum wage by at least $1.50 an hour, which would drive up the cost of hiring new full-time entry-level retail workers by $3,000 annually.
  • As a successful personal injury lawyer, Edwards built a multimillion-dollar fortune from fees extracted during product-liability lawsuits, which may raise concerns among retailers and industry suppliers about litigation.
  • Edwards wants to give extra tax breaks to American companies, including retail operators, that keep jobs in the US, but wants to slash back on deductions for businesses that set up operations abroad.
  • Edwards has opposed several trade initiatives favored by retail industry leaders, including NAFTA, the Chilean trade agreement, and grant of "fast track" trade negotiating authority to the president.
  • Despite being characterized as a "Lear Jet lawyer" with a radical anti-business agenda, Edwards has advocated for malpractice reforms, campaign finance reforms, and bankruptcy reforms that show glimmers of independence and even-handedness.

Statistics:

  • The proposed increase in the national minimum wage of at least $1.50 an hour would drive up the cost of hiring every new full-time entry-level retail worker by $3,000 annually.
  • Edwards has voted against a number of bills designed to rein in runaway litigation, place caps on damage awards in personal injury cases, and reform class-action lawsuits.
  • Since coming to the U.S. Senate in 1999, Edwards has been the lead sponsor on a total of 74 bills – not one of which has emerged from committee for a floor vote.
  • Edwards wants to whittle down the size of the federal workforce (excluding the military and homeland security) by 10% over the next five years.

Sources:

  • [American Tort Reform Association]
  • [U.S. Senate website]
  • [Ken Rankin, Washington Editor]