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The BS part you are missing was that some of the stores on the other side of the mall cut employee bonuses or reduced service\staffing.
The idea that magically raising wages by $2/hour would come entirely out of profits is hillarious but then again real world economics was never a big strength of the socialists.
Come back when you understand econ 101.
Minimum wage = cost push inflation
Demand pull inflation > cost push inflation.
We can complain about minimum wage until we are blue in the face, but real estate and oil prices affect goods far more than petty bull**** like minimum wage.
For republican business owners it is a maximum wage. If they had to pay someone two grand more a year they would just go bankrupt!
The prime directive of a business is the benefit the OWNERS, not the EMLOYEES. If my business makes just enough to cover all of the owner's expenses then any change in payroll may cause bankruptcy.
I'm just surprised that there two pretzel stores in the same mall selling an undifferentiated product that is so price sensitive people will walk to the other end of the mall.
I have seen some idiots who drive to the other side of town because gas may be 3 cents a gallon cheaper. They burn more than they save getting there.
The BS part you are missing was that some of the stores on the other side of the mall cut employee bonuses or reduced service\staffing.
The idea that magically raising wages by $2/hour would come entirely out of profits is hillarious but then again real world economics was never a big strength of the socialists.
Exactly. Those profits are earned for the owners. That is why they go into business in the first place.
We can complain about minimum wage until we are blue in the face, but real estate and oil prices affect goods far more than petty bull**** like minimum wage.
Sweet, I didn't realize that you could legislate global oil prices like you can minimum wages.
Well not every job is the same. You might possibly be paying too little for the type of work or the type of work is very labor intensive and not everyone is cut out for that type of work.
Kohls pays about $7.50 hour, has high turnover, and treats employees as suspects not be trusted. They'll bring 10 people in for training knowing that most won't last a month or even a week. Meanwhile the local Sams Club has happier better paid employees and few vacancies.
Whether we consider sales, earnings, or stock market returns, Costco (NASDAQ: COST ) is outperforming Wal-Mart (NYSE: WMT ) by a considerable margin in recent years. This is probably due to a multiplicity of factors, since both companies have important differences in areas such as business model and size.
However, there could be some important lessons to be learned from the competition between Costco and Wal-Mart when it comes to employee compensation and its relationship to business profitability. While many people tend to think that higher costs in segments such as salaries and benefits are necessarily detrimental for shareholders' returns, this interpretation may be far too shortsighted.
Over a period of years, attracting a more talented workforce and keeping employees incentivized has undeniable benefits for productivity and customer service, among many other business aspects, and this is probably one reason why Costco shareholders are receiving superior returns than investors in Wal-Mart.
Maybe the right wing knee jerk dogma is to be questioned.
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