Eeeeeeeevil Corporation on Main Street USA

The news of Walgreens’ decision to stop offering Medicaid prescriptions in Delaware due to a cut in the state reimbursement rate caused quite a hubbub across the blogosphere. Kavips became nigh apoplectic…so much so, I feared for his/her health, but I have to admit that his/her righteous indignation was somewhat endearing in its predictability. Delaware Libertarian had another view, calling out the Markell administration for a hate campaign, and wondering if Walgreens might actually be right. The Mourning Constitution has a similar view, saying quite succinctly:

They opted out of a government program, and I will support any business that won’t feed off of the government tit. (You had to expect that from a Libertarian.)

Are any of these defenders of Walgreens rich? I think not. I know for sure that none of us live in Greenville. I would venture to say that despite different backgrounds, we are basically working (for now) slugs hacking away like everyone else.

A story.

Bob, who has been working for the same company for thirty years, was recently laid off. He will survive; he bought a reasonable home which is paid off, and though he and his wife may live a bit more modestly in the future, they will make it.

Throughout those thirty years, in good times and in bad, Bob dutifully contributed to his 401-K plan. His investment choices tended towards more conservative risk levels, with a portion in the middle range. Like most people, his portfolio has suffered a loss of almost 30% over the past year, so he will have less than he had planned, but he had never thought of his 401-K as the end game for his post-employment years; he has also been saving in a plain bank savings account, with a little in the mattress to boot.

Part of Bob’s 401-K portfolio was invested in Walgreens stock. Over the past five years, Walgreens has pretty much followed the general trend of the NYSE, not better but certainly not worse than the average price of stocks overall. There is heavy-duty competition out there, especially with Wal-Mart’s entry into the prescription drug business. Bob relies on Walgreens’ continued attention to its responsibilities to its shareholders so that perhaps over the next five years some of his portfolio may regain some of its recent losses. That would help to allay the pain somewhat.

Bob’s wife Mary has been running the household for the past thirty years. Although she did some volunteer and charity work, she never had a real “paycheck” kind of job. The kids are pretty much on their own now, and Mary is thinking that now might be just the time to start looking into her secret dream: getting a real job for a so-called real company.

Mary notices that there is a new Walgreens that will be opening up less than five miles from her home. She is going to apply for a salesclerk job, and after that, who knows? She has always wanted to get into management somehow. After all, she has been managing her household for over twenty years. This might be just the chance she needs to pursue a long-deferred dream. Maybe this is her time.

Food for thought. Make of it what you will.