Basic Economics: Walmart Hikes Minimum Wages, Then Makes Completely Predictable Move

Basic Economics: Walmart Hikes Minimum Wages, Then Makes Completely Predictable Move

The demand for a hike in hourly wages is one that’s been echoing across the country and heeded by a few with disastrous consequences. For example, the situation with Dan Price of Gravity Payment Systems in Seattle. He set his wage floor at 70,000 dollars a year and not only discovered it to be economically impossible, but also lost a lot of faithful employees because there was no gap in between those who worked hard for promotions and those that didn’t. Crazy right? It only makes sense that those who earned higher wages get paid just as much as those who haven’t. Now Walmart is learning this same lesson. By spending an extra $1 billion to raise employees wages and offer them extra training, they’re being forced cut their hours and even lay some of them off.

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