walmart and the 15 dollar wage

Peter Schiff is receiving his fair share of death threats these days. His crime: he explained why Walmart cannot pay $15 per hour wages. He explains: Walmart’s profit margins are extremely slim as it is (3%). Their customers want low prices and are not willing to pay the cost differential for higher worker pay. Increasing their workers’ pay to $15 per hour would cost them 13 billion dollars per year. The only way to fund this increase would be to raise prices, and not by a insignificant amount. In other words, it would be business suicide. The entire video is worth a watch:

http://finance.yahoo.com/video/peter-schiff-why-wal-mart-200034834.html

Which reminds me of a certain meme:

Here is the original video to which the link refers (the first link is worth watching more):

About christopher fisher

The blog is meant for educational/entertainment purposes. All material can be used and reproduced in any length for any purpose as long as I am cited as the source.
This entry was posted in Econ 101, Economics, Labor, prices. Bookmark the permalink.

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