Wal-Mart raises pay, loses money

Less profit, that is, but take note:

The lesson is that America’s largest private employer—known for its ability to control costs and operate efficiently—lost profit because the company couldn’t offset a wage increase to $9 an hour by increasing prices, automating tasks or scheduling employees more efficiently.

No free lunches, as usual. But Joe and Mary Lunchbucket flock to Wal-Mart for its prices. It’s what they can afford. Do promoters of higher minimum wage get this?

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s