On May 4, 2014 at 08:26, Fiasco said...
And an across the board increase of minimum wage completely destroys that article as it completely ignores the chain of labor supplying WalMart. Or do only WalMart employees deserve $12 an hour and not any of their vendors employees? The cost of product coming in would increase right up through the chain.
You can't post an opinion piece that examines a sole entity in microcosm ignoring all other external forces and tout it as definitive proof that it's as simple as "making the pie bigger".
I've posted several pieces that aren't merely opinion. They include data. Of which, one looks at McDonald's franchises needing a less than 3% Gross Sales to cover a minimum wage hike and Walmart needing a 1.1% to cover.
You can extrapolate those increases in raw goods, through the chain. Care to extrapolate?
If we're going to extrapolate all cost impacts, then we have to consider the impact of 30-40% more disposable income for the bottoms tiers of the workforce.
Instead of mandated minimum wage increases, I'd much rather have the low wage behemoths charged back for the amount of public assistance that their employee's receive. I believe that would quickly remedy McD's, Wal-Mart's (and their ilk) artificially low tax subsidized prices and drive wage increases without a mandated minimum wage increase.
It's good to acknowledge the benefits given business are at the cost of the worker. Why not let the 'free market' take care of them and leave government out of it?
