Mural, done. Woot! Walmart vs. The Minimum Wage
Why does Walmart lobby for increasing the minimum wage?
It’s because they already pay at a rate that is above the minimum. Increasing the minimum wage reduces competition because it increases the “entry” cost to other new and existing retailers. This, if it happened, would produce a small oligopoly (minor monopoly) over the market and reduce competition further – to Walmart’s benefit. Once an oligopoly or a monopoly have taken their course, competition is null and the seller controls the pricing. Rather than in a purely competitive marketplace where the buyer and seller “agree” to some (the equilibrium) price. Effectively making it worse for the poor folk if Walmart had it’s way and was the only player on the block.
From the flip side though, Walmart creates a benefit to the poor by having ridiculously low prices that are well below the equilibrium level. In fact, the net benefit of them having such low prices is more than enough to make up for the lack-lustre labour benefits that they provide to their own employees (but that’s another argument entirely)
So, love it or hate it. Walmart is both a demon and a saint.
The duality is charming, actually.
that is interesting perspective that is also where linnette works
http://money.cnn.com/2005/10/25/news/fortune500/walmart_wage/
Very interesting……..
"In fact, the net benefit of them having such low prices is more than enough to make up for the lack-lustre labour benefits that they provide to their own employees (but that's another argument entirely)" So because they sell cheap shit it's ok to pay the employees low wages. don't state this as fact because it isn't.
"In fact, the net benefit of them having such low prices is more than enough to make up for the lack-lustre labour benefits that they provide to their own employees (but that's another argument entirely)" So because they sell cheap shit it's ok to pay the employees low wages. don't state this as fact because it isn't.
“In fact, the net benefit of them having such low prices is more than enough to make up for the lack-lustre labour benefits that they provide to their own employees (but that’s another argument entirely)”
So because they sell cheap shit it’s ok to pay the employees low wages? Don’t state this as fact because it isn’t.
interesting indeed
@James: Couple of things to note here.a) Walmart pays it's employees above the minimum wage. This is more than we can say for comparable employment.b) Walmart provides health insurance coverage to some of it's employees. Again, more than we can say for comparable employment.The net benefit of Walmarts low prices to the poor is massive. When I compare ~1.2 million people (0.03% of Pop.) that work for Walmart and are paid an amount that they accept; to the est. ~39 Million poor people (13% of Pop. Below Poverty Line) that are better off because of Walmart's prices.Hence, It's impossible for me not to state it as a fact. Yes, the reality of the situation is that because they sell cheap shit it's "ok" that they pay their employees a wage, that they accept, that is above the minimum.Here's a good example of some research on the topic if you're interested: http://econ-www.mit.edu/faculty/download_pdf.php?id=1243
The net benefit of Walmarts low prices to the poor is massive. When I compare ~1.2 million people (0.03% of Pop.) that work for Walmart and are paid an amount that they accept; to the est. ~39 Million poor people (13% of Pop. Below Poverty Line) that are better off because of Walmart’s prices.
Hence, It’s impossible for me not to state it as a fact. Yes, the reality of the situation is that because they sell cheap shit it’s “ok” that they pay their employees a wage, that they accept, that is above the minimum.
Here’s a good example of some research on the topic if you’re interested
Bigger picture Brandon! How about all the small businesses that have been in communities for years, that can't compete with Wal-marts Uber large distribution networks and facilities. Many of them have closed up shop.Do you think money spent at a wal mart stays in the community in which the store is located? nope. So now instead of money staying in the community it's funneled to some fat cats that potentially live thousands of miles away.Net benefit to community:-Less jobs-Same low pay-Wealth is funneled out of the community.Those are some real benefits.~Think Globally, Act locally~
Bigger picture Brandon! How about all the small businesses that have been in communities for years, that can't compete with Wal-marts Uber large distribution networks and facilities. Many of them have closed up shop.Do you think money spent at a wal mart stays in the community in which the store is located? nope. So now instead of money staying in the community it's funneled to some fat cats that potentially live thousands of miles away.Net benefit to community:-Less jobs-Same low pay-Wealth is funneled out of the community.Those are some real benefits.~Think Globally, Act locally~
That's actually the opposite of the big picture. These microeconomic changes happen due to the inability of these smaller businesses to compete with Walmart's pricing. If Walmart can do it better, then why not let them?When I consider 10 or 20 individual stores closing to increasing the economic welfare of a population of 20,000 or many many more – I still stick to my original point that the benefit out-weighs the cost.I'm not specifically saying that Walmart is a fantastic corporate citizen. What I am saying is that there are some benefits that come with their market strength and that there are some interesting reasons past that of simplicity that lead them to make business decisions.- Less jobs? Not specifically it's likely just a different distribution. – Same low pay? Perhaps not as low as it would be for comparable employment.- Wealth is funneled out? There are pros and cons here, but in the end, reducing prices for the largest portion of the population creates wealth.
Humph…let's see. Wallmart, ya I'd have to agree…they're bastards! Where are the those door greeters, they took them away! And they expect me to shop there? I don't think so…