[spinestein]

[It seems to me that Wal-Mart should raise its own minimum wage (maybe $8.50), and then many other employers will follow the W-M lead.]



Sure, they could pay their shelf stockers and register jockeys $8.50 an hour when the typical fair market price of such work is $6.50 an hour, but then the people who are now making $8.50 will want $10.50 and the ones who are now making $10.50 will demand $12.50 and so on, all the way up the wage chain.

The next thing that will happen is that since everybody will have so much more money to spend, prices will go up proportionally and the inflation rate goes up until prices catch up to where the wages went and then everything will be back to where it started...except people's savings won't be worth as much.

It would probably be easier for congress to just pass a law decreeing an immediate decrease of the value of everyone's savings by 10%, because the result will be the same.

[DannyTN]

The reason why Walmart can't raise it's rates, is because then they would have to charge higher prices. Then they lose their competitive edge and the associated volume.

Unilaterally raising prices is an out of business strategy for Walmart. Only the government can unilaterally change the market that way.

The same logic applies to outsourcing to China. If it makes short term financial sense, even if it's bad for the country long term, you had better do it or your company won't be around to see the long term.

Again Government needs to step in with import tarriffs or technology export controls to stop the outflow of technology and manufacturing capacity, because individual firms just can't.

[american_knight]

Very good analysis. I work at Wal-mart, and what you say about everyone wanting a wag hike is absolutely right. We recently got pay raises based on our job functions to make it more fair according to other retailers. And you should have heard all the complaints from those who didn't get what they thought they should. Be happy.. we got a raise! BTW I found out that our starting wage is 6.30 an hour and if you are a cashier it is 6.70 an hour. and you will get a .40 or .55 cent raise after 90 day eval. Taking you over 7.00 an hour as a cashier. More than most other employers around here. Although I wish I made more.....don't we all.