Finally, some good news from the private sector dispelling the middle class killing myth that higher wages kill growth.
From PoliticusUSA: While Wal-Mart experienced February sales that were considered, “total disaster,” Costco’s earnings for the second quarter of the year climbed 39%. The New York Times reported, “Costco Wholesale’s net income for its second quarter climbed 39 percent as it pulled in more money from membership fees, sales improved and it recorded a large tax benefit.”
I agree wholeheartedly. supply-siders and trickle-down tools have been proven wrong time and time again that higher wages stunt economic growth. Simply not true. Even the known fascist Henry Ford wanted his employees to make enough money to afford the cars that they built.
From "Daily Finance" (not exactly a liberal magazine) : In 1914, a business executive named Henry Ford did a startling thing: He announced that he was going to more than double the wages he was paying his employees, from $2.34 to $5 a day -- the equivalent of $120 a day in today's money.
More: The story you hear frequently about why Henry Ford made this decision was that he wanted to allow his workers to be able to afford to buy his cars. The wage increase certainly made the cars (and many other products) more affordable for Ford employees, but the historical consensus is that Ford actually made this decision for a different reason: To reduce employee turnover--and, in so doing, reduce recruiting and replacement cost. Regardless, it worked.
I highly recommend reading the whole article - very informative.
I hope Wal-Mart Management is reading the same articles but I doubt it.
From PBS: Wal-Mart is the largest employer in the United States after the Federal government with over 925,000 employees. Each year, the company hires 550,000 more employees - three times the number of people the U.S. military recruits every year - replacing those lost to rapid turnover and replenishing its workforce.
Imagine if all those people made a living wage. It's easy if you try.
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