Quote:
Originally Posted by Guest
It's strange that the country's largest employer, Wal-Mart, has figured out a way to increase the minimum wage without raising prices, so they say. Same with Target, Costco, Starbucks, and many other companies.
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Strange indeed!
Back to reality... something obviously has to give; Profits at first, then stockholders grumble, then prices are raised to restore previous profitability. Then price elasticity enters into the equation. How many will purchase a 12-pack of diapers for $100?
Not as many, so prices are reduced and "savings" found elsewhere. Ah, enter labor. Since we can't reduce hourly rate, we'll reduce head count to restore profitability. "Do more with less" suddenly becomes the new mantra.
There's no free ride...
(At least that's what my economics classes taught me.)