RAISE WAGES … CUT HOURS
|| By FITSNEWS || This website has consistently opposed government-mandated wage hikes. Market forces (including people pissed off at establishments that screw over their workers) ought to dictate wages – and government efforts to mandate wage increases will only harm the economy.
Don’t get us wrong: America’s wealth gap is out of control, but the solution isn’t mandating wage increases – it’s ending crony capitalism.
Anyway, Walmart – the largest retailer in the world – recently announced it was raising wages for some of its lowest-paid employees to a whopping $9.00 per hour. Awesome, right?
Um, no … not really.
In order to pay for the $1 billion cost of the wage hikes, Walmart is now … (wait for it) … cutting back on employee hours.
From Bloomberg‘s Shannon Pettypiece …
Regional executives told store managers at the retailer’s annual holiday planning meeting this month to rein in expenses by cutting worker hours they’ve added beyond those allocated to them based on sales projections.
The request has resulted in some stores trimming hours from their schedules, asking employees to leave shifts early or telling them to take longer lunches, according to more than three dozen employees from around the U.S. The reductions started in the past several weeks, even as many stores enter the busy back-to-school shopping period.
LOLz. Seriously though … is anyone surprised?
This is how the free market works, people …
“So there you have it,” our friends at Zero Hedge noted. “Further proof that across-the-board wage hikes – like socialized medicine and free college – is a concept that sounds good when considered in a vacuum, but when implemented is subject to economic realities that conspire to make the end result look far less desirable than proponents might have imagined.”
UPDATE: Walmart responds …