Yesterday, I had the opportunity to discuss the impact of the drop in oil prices on consumer spending and higher wages with Fox Business News personality Maria Bartiromo. In a segment titled, How falling gas prices are boosting restaurants, I walked Maria thru the positive impact on our sales by sharing a chart with her that compares oil prices with our 52 week moving average for domestic restaurant sales. I also explained how economic growth creates an increase in the demand for labor which, in turn, leads to higher wages.
On the same day, Fox Business ran an op-ed I wrote on the same subject titled, Wal-Mart’s Wage Hikes a Win for Free Enterprise. The chart referenced in both the interview and the op-ed makes it abundantly clear that a drop in oil prices is leading to increased consumer spending and higher wages. While a meaningful reduction in taxes and regulatory costs could well have had the same positive impact six years ago, it’s never too late for government to do the right thing and look for ways to create a better environment for business to thrive. Given the right conditions, job creators will continue to create real and sustainable economic growth. This means jobs, jobs, jobs.