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ProSense

(116,464 posts)
17. Walmart could pay workers $14.89 an hour without raising prices
Fri Jan 24, 2014, 01:47 PM
Jan 2014
Walmart could pay workers $14.89 an hour without raising prices

by Laura Clawson

Walmart can easily afford to raise pay for its low-wage workers by $5.83 an hour, to an average wage of $14.89, a new report from progressive think tank Demos concludes. All the retail giant has to do is stop its massive stock buybacks—which only serve to enrich a shrinking pool of shareholders, not to improve productivity—and put that money toward its workers.

Walmart spends $7.6 billion a year buying back shares of its own stock:

... which reduces the number of shares traded on the market so that the same level of earnings are distributed over fewer owners, making each remaining share worth more. Those owners who keep their stake in the company see the value of their holdings increase even if the company’s performance does not change.

The main owners who have kept their own stake in the company are the Walton family, who now own more than 50 percent of the company. If you're of the "companies should only care about their shareholders" school of thought that's driving the race to the bottom on wages and jobs, consider this:

Even for investors, the intended beneficiaries of a share buyback, the value of this financial maneuver is often illusory. As a prominent business analyst explained to the Wall Street Journal last year, "the evidence overwhelmingly shows that heavy buyback companies usually create less value for shareholders over time… Many managements have become so infatuated with how buybacks increase earnings per share that these distributions are crowding out sound business investments that create more value over time."

Paying workers more or adding worker hours would be a sound business investment for Walmart by reducing worker turnover, which is predictably very high. Or by fixing the problems with bare shelves that have left many customers unhappy. Or by turning the very large Walmart workforce from people who need food donations and government assistance into people who make a living wage and can afford to shop at Walmart.
(Via Salon)

http://www.dailykos.com/story/2013/11/19/1256723/-Walmart-could-pay-workers-14-89-an-hour-without-raising-prices

http://www.democraticunderground.com/10024067021

The problem/advantage of an ignorant population. Egalitarian Thug Jan 2014 #1
K&R nt laundry_queen Jan 2014 #2
$12 is not enough RobertEarl Jan 2014 #3
Agree - minimum wage workers spend their checks TBF Jan 2014 #7
"Minimum wage workers are kids in high school"... ReRe Jan 2014 #4
She was on something... Drunk or pain killers but Matalin was a complete idiot.. SomethingFishy Jan 2014 #26
As a matter of fact... ReRe Jan 2014 #31
K&R Hissyspit Jan 2014 #5
^ Wilms Jan 2014 #6
I know this . . . YarnAddict Jan 2014 #8
You must know wrongly ...... oldhippie Jan 2014 #23
Is that sarcasm? YarnAddict Jan 2014 #24
Former fund raiser here HangOnKids Jan 2014 #35
This sort of post presumes only your employees would get the $12 raise Doctor_J Jan 2014 #29
K&R .... raise the minimum wage = best economic stimulus of all. Coyotl Jan 2014 #9
K&R redqueen Jan 2014 #10
A $12 minimum wage might not affect Walmart too much taught_me_patience Jan 2014 #11
Boo hoo. davidthegnome Jan 2014 #12
I don't think that's the case kcr Jan 2014 #13
It is the case taught_me_patience Jan 2014 #14
Oh well kcr Jan 2014 #15
It's fascinating that people believe supply-side economics jeff47 Jan 2014 #16
Even more amazing kcr Jan 2014 #18
This. ^^^ -nt CrispyQ Jan 2014 #32
It's a very complex equation dickthegrouch Jan 2014 #20
Bull. They can raise the price of a meat loaf platter to offset this problem Doctor_J Jan 2014 #27
Bullshit. If you are running a business and can't afford to pay your employees SomethingFishy Jan 2014 #25
Walmart could pay workers $14.89 an hour without raising prices ProSense Jan 2014 #17
Remember those 85 people Oxfam talked about? dickthegrouch Jan 2014 #21
Yeah, time for them to kick in some bucks! KansDem Jan 2014 #30
+1 El_Johns Jan 2014 #22
K&R G_j Jan 2014 #19
"Papa" John of the pizza chain admitted during the ACA debates that providing his Doctor_J Jan 2014 #28
The minimum wage in the US should be tied to the average CEO compensation. indie9197 Jan 2014 #33
I actually like that idea fujiyama Jan 2014 #34
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