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Min Wage/Jobs: Walmart or Econ 101....

Eagle

Eagle

First Round Draft Pick
Gold Member
May 29, 2001
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Yep, economics still works. Walmart after announcing a hike in the wages (not tied to performance) is running into problems, just like Dan Price with Gravity, Walmart is cutting hours and closing stores in order to make up the additional $1 billion in wages the hikes cost them.

If you are the low price 'leader' you simply can't afford to pass on arbitrary price increases to your customers. It's not difficult. So minimum wage increases - hours decrease, labor force shrinks, unskilled labor suffers. It's a law. You can ignore it, you can deny it. It's still a basic economic law.

http://www.bloomberg.com/news/artic...me-workers-hours-after-pay-raise-boosts-costs
 
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