posted on Nov, 19 2012 @ 01:27 PM
I read this article today and I think it dovetails nicely with this thread/topic and helps put things into perspective. The article details how
setting a $25,000/year minimum income for retail workers would impact our economy. After doing the math, they estimate the hourly wage would need to
be increased to $12.25/hr.
Here are some of the highlights:
"If retailers pass half the costs of a wage raise onto their customers, the average household would pay just 15 cents more per shopping trip --
or $17.73 per year," the study found. "If firms pass 25 percent of the wage costs onto their customers, shoppers would spend just seven cents more per
shopping trip, or $8.87 per year."
That's a tiny price to pay for an initiative that would have a potentially revolutionary impact on the standards of living of millions of Americans
and the economic prospects of the nation at large. The $25,000-a-year wage floor would lift more than 700,000 people out of the harrowing precincts of
poverty. And it would boost the pay of hundreds of thousands more who currently are struggling just a notch or two above the official poverty
As you can see, the average "cost" passed onto consumers is hardly pocket-book breaking!
The increased spending anticipated from the pay hikes would give a badly needed boost to an economy that has been advancing only in fits and
starts since the recession ended in June 2009. As the study explains: "U.S. corporations are cash-flush, but hesitant to make investments on products
they are not sure will sell. As a result, their gloomy outlook becomes a self-fulfilling prophesy: firms do not expand production, keeping the job
market slack, pocketbooks closed, and investments unappealing."
This goes in line with my other discussion topic I started before the end of the election. In that discussion, we discussed the failure of "trickle
To put into perspective just how well these large retailers like Walmart are doing:
This would not be a heavy lift for the industry. Retail is booming and profitability reached a ten-year high in the first half of 2012. The largest
retail firm, Walmart, earned nearly $16 billion in the last year alone. While the U.S. economy and millions of American families have been struggling,
Walmart has seen its net sales grow by more than $70 billion since the start of the Great Recession in December 2007.
As you can see when the numbers are put into perspective, Walmart and others can certainly pay their customers a tad bit more:
According to the Demos study, the cost of the wage increases to major retailers would be $20.8 billion, which amounts to about one percent of the
sector's $2.17 trillion in total annual sales. But the study also estimates that the increased purchasing power accruing to low-wage workers as a
result of the pay raises would generate $4 billion to $5 billion in additional annual retail sales.
ONE percent of their annual sales? Are you kidding me? We can help out over 700,000 people and increasse their spending potential by a ONE percent
dent in profit?
Just how greedy is Walmart and other big retailers? Apparently very.
Here's a link to the article and more information on the study:
Why Walmart and Big Retailers Should
Pay Their Workers More
edit on 19-11-2012 by MystikMushroom because: (no reason given)
edit on 19-11-2012 by
MystikMushroom because: (no reason given)