The ‘Republicanization’ of America: Depressed Wages, or How Walmart Is Screwing Us All
The current incarnation of the GOP is not your father’s Republican Party. These people are not fiscally responsible, and certainly not conservative. They’re really not that bright when it comes to economics. For some reason, they have convinced themselves that low wages are necessary for most companies to survive, and that is just insane. If it’s necessary to survive, then consider the example of Costco. They makes a higher profit per store than Walmart, and have for many years. Here’s another: the Washington, DC City Council proposed a minimum wage of $12.50 last year, and Walmart killed plans for three stores. There was no mass exodus of companies from the District; just Walmart. (By the way, they settled on $11.50, and there is still no mass exodus.) If low wages are so necessary to compete, why do so few companies pay the minimum wage? Fewer than 15 percent of all workers make less than $10 per hour, and small businesses that pay the minimum wage or less are actually at higher risk of failure. Most companies that pay at or around minimum wage are in the discount retail and fast food industries. Yet supermarket chains, which have a much higher union membership and pay higher wages against a much tighter profit margin, seem to do quite well.