Filed under: Bureaucracy, Capitalism, Economics, Economy, Energy, Free Markets, Freedom, Taxes, Unemployment | Tags: Economist Mark Perry, President Barack Obama, Wal-Mart Stores
—The correct minimum wage is $0.00. If you want to hire your neighbor’s 11 year old kid to mow your lawn or pull weeds, you should be able to offer him something under the current minimum wage.
The goofy Democrat line is “But you can’t raise a family on the minimum wage.” Well, no you can’t, but by the time you have a family, you should have some skills that are more useful than those of a pure beginner. We forget that employment, like everything else in the economy, depends on supply and demand. The supply of people who can do a simple minimum wage job successfully is very, very large. The supply of those who can run a giant corporation with 20 divisions, 20,000 employees and country-wide or international reach is significantly much, much smaller. The average tenure for a CEO as head of a corporation is only six years.
—Wal-Mart, America’s largest employer just announced that they will close more than 150 US stores — which will mean that 10,000 employees will lose their jobs. Shutting down underperforming stores will help to move the company back to health, when it can create more permanent jobs. Wal-Mart voluntarily raised its base wage to $9 an hour last April, but this resulted in a 10% drop in earnings. A Union backed group that has heckled the retailer to raise it’s entry level wage, was astonished. But the job losses are the direct result of the changes made at Wal-Mart.
—Here’s Economist Mark Perry at AEI with a list of ten reasons why economists object to the minimum wage.
Obama and Hillary are still pretending that women are paid less than men because America’s employers discriminate against female workers. The Left needs women to be victims, and Hillary is running on her qualifications as a woman. “Today, women account for almost half of the workforce,” Obama huffed. “But the typical woman who works full time still earns 79 cents for every dollar that the typical man does.” Bogus statistic, and Obama knows it, for it simply depends on comparing all women to all men. It has been against the law to pay women and men who do the same job differently since 1963.
Unless women stop getting married and having children, and start abandoning careers in childhood education for naval architecture, this huge gap in wages will almost certainly persist. Democrats thus can keep bringing it up every two years.
—Income inequality, the basis of the entire Democrat campaign, is a factor of demographics. Kids starting out have little income and may have big student loans, or renting an apartment or buying a used car are big expenses. There are more middle-age and old people now than there used to be, and older people tend to have more money than their younger counterparts simply because they have been earning money much longer.
A 70 year old man has been saving most of his life. He owns his home. his children are grown, he gets Social Security on retirement, and has benefited from a life-long buildup of career skills and connections and is apt to have far more money than a 30 year old. There is a clear relationship between age and the median net worth of people in every quintile. There are more old people as the baby boomers reach retirement age, and the birth rate has dropped so there are fewer young people. Do not let the Democrats fool you with their whining about Income Inequality. Sheer Demographics.
—In his remarks to the Press on Friday, when he bragged about the wonderfulness of his economy, Obama mentioned the drop in the cost of gasoline as one of his beneficial outcomes. That happened in spite of Obama, not because of Obama, as a result of the glut of oil based on Fracking. Obama’s instinctive response is to try to slap a $10 a barrel tax on oil so he can raise the cost of gasoline at the pump — while having more taxes to invest in “clean energy” which is pure waste. Obama’s wind and solar investment, in spite of the huge subsidies and grants, provide a resounding 0.3 percent of America’s energy.
(additional sentence added about equal pay for women)
Filed under: Capitalism, Economy, Freedom, Liberalism, Media Bias, Progressivism, The United States | Tags: Better Pay-More Advancement, The Walton Family, Wal-Mart Stores
The Left has a remarkably long list of things they hate, but Wal-Mart is right up there close to the top. I’ve never been sure quite why. They are “Big Box Retailers”, they go into small towns and drive out all those mom-and-pop stores out of business, and destroy good paying jobs. They drive down wages when they invade a town. Wal-Mart wages are humiliating and force employees to use food stamps, Medicaid and other forms of welfare. And you’ve probably seen the photos of the “Wall-Mart people,” poorly dressed people, fat people — just not our kind.
Researchers at Stanford and University of Michigan business schools looked into the facts about Wal-Mart. When they crunched the numbers they found that wages are much higher at the big Box stores, and are much higher than at the mom-and-pop stores.Worker pay rises “markedly,” says Investors, “as the size of the company or the size of the store increases.”
Worker pay, in fact, rises “markedly” as the size of the company or the size of the store increases. Those with some college education, the researchers found, make 36% more at a Wal-Mart-size megastore than one employing fewer than 10 workers. Those with just a high school education do 26% better.
A paper published by the National Bureau of Economic Research also found that workers who move from a corner store to a megastore do better financially. Someone with a high school education will typically get a pay boost of 19% by making the switch.
What’s more, big box retailers offer far more opportunities for advancement than do small ones, with pay supervisors and managers especially advancing.
For those who think Wal-Mart pays “humiliating” wages, the average hourly pay for a cashier is $8.48, which is 17% higher than the minimum wage, and is just pennies less than what the average barista makes at Starbucks, the researchers found. Assistant managers at Wal-Mart make about $10,000 more a year, on average, than those at Starbucks.
A number of years ago, the big complaint was that Wal-Mart was helping their workers to get food stamps, which proved just how awful Wal-Mart was. This was during the Bush administration, and Wal-Mart was quite involved with the “welfare to work” program. To make it easier for new workers to manage the transition from welfare to a job, companies participating in the program were required by the government to help the new workers to get food stamps. Sometimes you just can’t please the Left, no matter what you do.
Some cities have tried to prevent Wal-Mart from going into areas where they might serve less affluent communities, under the illusion that Wal-Mart would take advantage of the poor and unemployed, thus depriving them of good jobs and the opportunity to save on merchandise.
Wal-Mart has enormous buying power, and buying in large quantity means cheaper prices. There are more jobs, higher pay and lower prices for customers. We shouldn’t be surprised that liberal elites hate Wal-Mart.