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A. That turned out to be not exactly correct. B. But Buchanan warned against such an assumption. C. But a number of business organizations say it should remain untouched. D. But what works for a clothing company might not work for a different one. AB. Raising the minimum wage is identified as a key way to address the income gap. AC. For opponents a wage increase, increasing the minimum wage could reduce total employment by about 500, 000 jobs. |
More Clarity Needed on Wage Debate
These days, the minimum wage has become something of a big issue in America. For supporters. 16. 5 million low-wage workers could see an increase in their weekly earnings and 900, 000 people could rise above the poverty line.
Gap Inc, has decided to increase the minimum hourly rate it pays employees to $9 this year and then $10 next year. The company's announcement will effect 65, 000 Gap employees by 2017. Clearly Gap officials believe the money they invest in higher wages will pay off in increased sales and customer satisfaction. There's certainly nothing wrong with that.
Also last week, Wal-Mart found itself at the center of the wages gossip when it was reported that the company was looking at supporting an increase in the minimum wage.
Wal-Mart spokeswoman Brooke Buchanan said the company remains neutral on the idea of a minimum wage increase, but "obviously it's something that we look at closely, as any other company would". She said that more than 99 percent of company associates are paid above the current minimum wage. It has been discussed how increased income for low-wage workers might translate into increased spending. So it's reasonable to say that a company like Wal-Mart could see a jump in sales if the minimum wage rose.
"That is assuming that consumer behavior would be, 'If they have more money, they'll spend more money," she said. "That isn't always necessarily true. If we had a crystal ball, we could guess what consumer behavior would be in the future if a minimum wage increase goes through. But you just can't. "
