“If socialists understood economics, they wouldn’t be socialists.” – Nobel Prize winner in economics, Friedrich Von Hayek
Amazon, the second largest private employer in the U.S. (Walmart is the largest), is raising the minimum wage for its full-time and temporary workers to $15 per hour!
Here is a list of the top employers in the United States:
Number of employees
Average annual pay
Yum! Brands (KFC, Taco Bell, Pizza Hut)
The Home Depot
When we see Walmart make a similar type of move, and then the “fast food” companies, we’ll know the economy is really cooking!
According to Krystal Hu for Yahoo Finance, “The decision comes at a time when the e-commerce giant has been under mounting pressure for low wages and draconian working conditions. Analysts see it as a good public relations move and believe the economics behind it makes sense, especially before another busy holiday hiring season. That’s the real reason why Amazon is raising the minimum wage.”
Do we really have to look a gift horse in the mouth every time there is good news regarding the economy and the jobs outlook? If you’re getting a sizable raise out of the blue or a new job at a higher wage, do you really care why?
The unnamed “analysts” noted here say they, “…see it as a good public relations move and believe the economics behind it makes sense, especially before another busy holiday hiring season.”
Isn’t that why most companies do what they do? Because the economics behind doing what they are doing make sense? Or because it is a good PR move?
What amazing insight from the “analysts” here!
“In a statement on Tuesday, Amazon admitted it has taken recent attacks into consideration. ‘We listened to our critics, thought hard about what we wanted to do, and decided we want to lead,’ said Jeff Bezos, Amazon founder and CEO.”
“Senator Bernie Sanders, one of Amazon’s most prominent critics, has repeatedly called out Bezos. Sanders said many Amazon employees are receiving federal benefits like food stamps while working for ‘the wealthiest people in the U.S.’ Last April, he introduced a bill that called to raise the federal minimum wage to $15 an hour.”
What we see here is the model way to increase wages versus the failed, socialist way of raising wages.
In the model way, the capitalist way, the preferred way, the economy and business improve to the point where there is an increased need for workers, thus companies offer higher wages and incentives to lure them to their companies. In an ideal situation, this compounds upon itself over and over again, constantly providing new job opportunities and higher wages.
Bernie’s way, the socialist way, arbitrarily raises wages, causing lay-offs, a loss of jobs entirely and in some cases the failure and shut down of companies and businesses altogether.
Recall the quote from our Nobel Prize winning economist at the top of this piece.
In another article by Christopher Rugaber, Associated Press economics writer, he says, “After years of sluggish pay gains, the economy may be starting to work for America’s low-wage workers. Amazon’s announcement that it will raise its minimum wage to $15 an hour will intensify pressure on other companies to lift their pay levels as well. Among the most likely to do so: Amazon’s rival retailers and warehouse operators, many of which are facing the prospect of staff shortages as they ramp up for the holiday shopping season.”
That’s the way it works, Bernie! An expanding economy, because of lower taxes and lessened restrictions, eventually creates better opportunities for workers up and down the jobs ladder.
“Now, with the unemployment rate near a 50-year low and the number of job openings exceeding the number of unemployed, more lower-income Americans are finally receiving meaningful raises.”
“Accordingly, retailers, who employ a sizable share of the nation’s lower-paid workers, have been stepping up pay increases. Average hourly wages for retail workers, excluding managers, rose 4 percent in August compared with 12 months earlier.”
Rugaber then cites someone named Marshall Steinbaum, a fellow at the Roosevelt Institute (a socialist organization). Steinbaum says, “Now that activists have succeeded, they can now take that demand to other employers. You say you can’t afford this, but your competitor obviously can.”
Paging Mr. Steinbaum.
Paging Mr. Steinbaum.
Your level of confusion is impressive Mr. Steinbaum.
The fact that you think “activists” had anything to do with this is quite amazing.
Let me be perfectly clear when I say…
WE CAN THANK PRESIDENT TRUMP AND THE REPUBLICANS IN CONGRESS FOR THIS BOOMING ECONOMY.
END OF STORY.
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