Dragonlady
Designing Woman
- Dec 1, 2012
- 53,093
- 31,131
So blame Walmart and not your politicians?
Walmart or anybody else for that matter pay people what they are worth. What government does after that is not Walmart's doing or problem.
Walmart, McDonald's, K-Mart are in business for one reason and one reason only, to sell products and make a profit. They did not open up to be under some social obligation. They did not open up for the purpose of providing good paying jobs. If you think it's wrong that people who work these jobs go on social services, then abandon the Democrat party and join the Republicans, because we are against that as well.
If you think being a CEO is easy and are drastically overpaid, then become a CEO yourself and let us know how that works out for you. The reason CEO's make the money they do is because few have the ability to do their job. Don't you think that if a company could get a person to do the same job for half the cost, they would do it in a heartbeat?
We Americans don't think like people do in other countries. Our consumers want cheap, and that's their top priority. That's why Walmart is number one in the US today and has been for some time. They provide us with the cheapest products. It has noting to do with Reagan or the tax code.
It is a total fallacy that corporations pay people what "they are worth". Or that Walmart isn't doing anything unethical Totally untrue. Corporations will pay people the least amount of money they can get away with. They want their wages to be the lowest possible. It's the "bottom line management" being taught at business schools all over the country.
With the surplus of low skill workers, and with the lack of legislation forcing them to pay workers more, corporations have had no shortage of workers would be take any job for any amount of money, however small. As the pool of low skilled workers grew, corporations were actually able to cut starting wages.
Walmart had employees who helped their workers obtain every bit of public assistance available to them. And others who made sure that said employees kept their hours and their wages low enough that they didn't miss a subsidy. Other employees "encouraged" suppliers to off-shore manufacturing to lower wholesale prices.
Walmart has built their brand on predatory practices. Lowering prices to drive out competition, and then raising them when competition was driven out of business.
Would Americans prefer to get stuff cheaper at Walmart while each taxpayer in the US contributes $2,500 to each Walmart's bottom line with wage subsidies. Personally, I'd prefer to have that $2,500 in my bank account, rather than the accounts of the Walton Family. And I'll bet if business wasn't lying to people about the real costs of earned income credits and food stamps, and how corporations who really don't need the money, are using the system to line their pockets at YOUR expense, that nickle more for a burger won't seem like so much.
If Walmart, McDonalds, and other large corporations were barely getting by financially, it would be one thing, but these are some of the most profitable corporations in the world. Companies that pay much higher wages in other jurisidictions.
American want to shrink government, reduce waste and reduce taxes - raise the minimum wage and dump earned income credits. It will do both. Yes, you'll pay a bit more at the cash register, but the cut in taxes will more than make up for it.
Let's try something else so you can understand better:
Let's say that today, you ran into a small fortune: a wealthy relative died, a lawsuit in your favor came through, a lottery ticket, anything. So now you have $300,000. Your house is paid for, your car and bills are paid for, what would you do with that money?
If you're like most people, you will invest it. But let's say you don't know much about investments, so you hire an expert. You tell them you want a nice safe conservative investment.
So he or she gives you two they boiled it down to: One is a company that's been around a long time with a growth of 6% a year. The second the same thing, except their growth is 3.75% a year. Which company will you put your money in?
Before you answer, your investment person tells you that the company making 6% a year grosses 1 million dollars a year. the 3.75% investment grosses 200 million dollars a year. Does that change your mind any? Of course not. All you care about is the growth of your money.
Companies heavily rely on investors much more than they rely on how much they are worth or how much they are taking in. If a company is overpaying employees and not making as large of a profit, you will opt to invest your $300,000 somewhere else; most people would.
Corporations will pay people the least amount of money they can get away with.
Yes they do, but are they doing anything different than you?
If your transmission needs to be rebuilt and you get three estimates, do you choose the $750.00 garage, the $1,100 garage, or the $1,500 garage to rebuild your transmission? If you need a new hot water tank, do you hire the plumber that charges $800.00, a plumber that charges $1,000, or the plumber that charges $1,200?
It's not just Walmart that hires the cheapest labor, it's all of us. We all do it. Why? Because why would you pay more to get work done than you have to?
And this price fixing is all urban legend. Walmart has fixed prices across the board. They can't adjust their prices very much because people would opt to online sales instead. Plus it's against the law and they would have nabbed Walmart by now.
Now that you've "mansplained" it all to me everything is SO MUCH CLEARER. The reason the US is in a total fiscal mess right now is because Americans are stupid. So long as the prices at the cash register are low, it's better than raising prices slightly, and lowering taxes a lot, and cutting government.
I have the good sense to know that using earned income credits to bankroll low income workers is a STUPID WASTE OF MONEY, for everyone except the government workers who process the payments.
As for your comments about how I would invest my money, you could not be more wrong. The last thing I would look at is growth. First off, I would never invest in the stock market. NEVER. I would invest the money in income property, or in a business with good prospects at profitability and income, but control of my property and my investment would always reside with me.
Well.......that may be, but most people would look at the market for their investment. The point I'm making is that when it comes to a company (and what they pay their employees) it all boils down to attracting investors. Even if they have a ton of money and could pay their employees more, that brings down the returns for those investors and it's a less attractive investment.
We created this monster that we now have no control over. We want cheap products, we want good paying jobs, and we want our retirement account in the market to grow as aggressively as possible. You can't have it all. And we collectively chose cheap products and high market growth.
Most people don't really follow politics, don't read labels before they buy things, and don't know how to read a balance sheet, or have any idea of what ratios are valid in terms of profits, material costs, and labour. If you're making investment decisions primarily on growth potential, good luck with that. I make investment decisions based on sound financial management. That includes a reasonable ratio between executive and worker salaries. Any company that pays it's CEO 200 or more times the amount they pay their lowest paid worker, is top heavy in salaries.