Wal-Mart: Raise the Minimum Wage

Tuesday, October 25, 2005
In a page from the "Good PR , really underhanded move" Book, Wal-Mart CEO Lee Scott will ask Congress to raise the Minimum Wage.

Most of you know that I am not in favor of raising the minimum wage as I believe it actually hurts those it is trying to help. But this move by Wal-Mart is disingenuous at best.

Wal-Mart is the world's largest retailer and the world's largest private-sector employer. It has an effect (but admittedly limited) on the wages in this country. Most of it's employees are low-paid workers. If Wal-Mart wants to raise the standard of living for the poor in this country all it has to do is look in the mirror. If Wal-Mart makes a unilateral move to raise the wages it pays its low-cost workers than the other employers will follow or risk losing their workforce. There is no reason they have to wait for a government fiat to accomplish this.

Now Think About It. Why does Wal-mart really want to do this? I tend to think they have an ulterior motive other than trying to be nice guys. First, like I stated, it is a good PR move. But underneath that there may be something more sinister. This wage hike may put out of business the Mom-and-Pop stores Wal-Mart competes against. The Mom-and-Pop stores already face tremendous price pressures against Wal-Mart. They can't negotiate the same deals with suppliers that Wal-Mart has nor do they have the tremendous infrastructures that helps Wal-Mart keep prices down. Force them to raise their labor cost, and you just might be able to squeeze the very last competition that Wal-Mart faces. Of course, what is Wal-Mart going to do when it doesn't face any more competition?

7 comments:

Jenny said...

Are you trying to post more so I move you to a daily read?

T said...

Of course. My life revolves around you reading my blog as often as possible. :)

David Cho said...

Agreed.

This is a fine example of Big Business and Big Government corroborating to screw the rest of us. The worst of capitalism intersects with the worst of socialism.

Jen said...

"what is Wal-Mart going to do when it doesn't face any more competition"

-Colonize Mars and charge for admission

You should watch JibJab's cartoon on Wal-Mart: jibjab.com

susan said...

Well T, you are not alone in that thought. http://www.reviewjournal.com/lvrj_home/2005/Oct-27-Thu-2005/opinion/4018707.html

Anonymous said...

Walmart wants minimum wage raised so its customers will have more to spend at Walmart.

A lot of people who shop there barely make more than minimum wage.

T said...

^^^^

That may be one of the more idiotic things posted on my blog. Who are you, a Wal-Mart shill? If you are going to make a statement like that, back it up with something.

I tend to defend Wal-Mart's ability to do business on my blog. I'm a free-enterprise type of guy and I don't have a problem with Big Business.

However, raising the minimum wage does little to help the plight of the working class. If you read the link to my other post, you will see that all raising the minimum wage does is cause inflation and put price pressure on small business.