Minimum wage should be raised

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Originally Posted by Smokey

And even more so since majority of low wage workers have hispanic or african-american origin.

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Or white in home health care providers.

Here is good article as to why Walmart should support minimum wage increase as nearly half of Walmart's 1.4 million U.S. workers currently earn an average of $8.45 per hour.

It estimate that although a higher hourly wage could increase Walmart's labor costs by $2 billion, the payoffs would be much greater. Walmart could gain an additional $13 billion if the minimum wage jumps to $10 an hour as at least one quarter of Walmart shoppers work in minimum-wage jobs.

http://finance.yahoo.com/blogs/daily...144036352.html

Quote:

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Originally Posted by Smokey

Here is good article as to why Walmart should support minimum wage increase as nearly half of Walmart's 1.4 million U.S. workers currently earn an average of $8.45 per hour.

It estimate that although a higher hourly wage could increase Walmart's labor costs by $2 billion, the payoffs would be much greater. Walmart could gain an additional $13 billion if the minimum wage jumps to $10 an hour as at least one quarter of Walmart shoppers work in minimum-wage jobs.

http://finance.yahoo.com/blogs/daily...144036352.html

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Unfortunately I think most employers adhere to the old adage, "A bird in the hand is worth two in the bush". In this case the dollar immediately saved on labor cost is worth more that a possible but uncertain increase in revenue.

By instinct employers, whether Walmart of the local mom & pop, are microeconomists, not microeconomists. Governments must take the measures on our behalf to overcome this inherent short-sightedness.

Quote:

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Originally Posted by Smokey

Here is good article as to why Walmart should support minimum wage increase as nearly half of Walmart's 1.4 million U.S. workers currently earn an average of $8.45 per hour.

It estimate that although a higher hourly wage could increase Walmart's labor costs by $2 billion, the payoffs would be much greater. Walmart could gain an additional $13 billion if the minimum wage jumps to $10 an hour as at least one quarter of Walmart shoppers work in minimum-wage jobs.

http://finance.yahoo.com/blogs/daily...144036352.html

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This is the blind spot of CEO thinking. The higher labor costs will definately be offset by the increase in business. If I make $15 bucks an hour, I will have a little more disposable income that somebody who makes $8.45 an hour.

The very reason why Wal-Mart(and other big box bargain stores) are hurting, is because the demographic they serve does not have much if any disposable income.

BOSTON, June 9 (Reuters) - Vermont Governor Peter Shumlin on Monday signed a law that will raise the state's minimum wage to $10.50 an hour by 2018, higher than any other U.S. state

Vermont To Raise Minimum Wage To $10.50