Walmart Moms took to the streets this week to protest Walmart’s unlivable wage. Ralph Nader was on David’s show earlier in the year and explained why it was in Walmart’s best financial interest to pay their workers more….
David: What role does a higher minimum wage play in higher prices? If Walmart, for example, paid a livable wage to its workers, how much more expensive would all those shoddy items we never needed in the first place actually be?
Ralph: Well, here’s one study that will startle you. And that is, if Walmart took all its workers up to $12 or more an hour, and there’s a million Walmart workers making less than 1968 Walmart workers made adjusted for inflation, it would increase the average Walmart visit by a consumer and what the consumer buys by $0.43, that’s all. These are highly automated companies and that’s assuming Walmart wants to transfer it all to the consumer, not take it out of Mike Duke’s salary and others. Mike Duke, the CEO, makes $11,000 an hour plus benefits, not take it out of other things in the company, other than the workers’ hides. Even if they transfer everything to the consumer, it’s $0.43 a visit. Of course it’s a great stimulus plan too because tens of billions of dollars are rising out of restoration of the minimum wage to 1968 inflation adjusted levels would produce a lot of purchases and that creates jobs.
Listen to the whole show below.