To read an op-ed I wrote about this topic, please click on this link: http://tinyurl.com/obrl684.
Minimum wage proponents would like to have the public believe that companies can raise entry-level wages in an easy and painless way. As the push to increase the minimum wage continues to dominate headlines and public pressure has driven companies like Wal-Mart to raise its base wage, contrary evidence is emerging. That’s why I wrote an op-ed that ran in today’s Wall Street Journal entitled, Wages With Minimal Wiggle Room, in which I discuss why Wal-Mart’s strategy is resulting in its bottom-line taking a big financial hit leading to reduced earnings per share and a 10% decline in its stock price.
As I explain in the op-ed, the low profit per employee at retail companies make it hard to absorb large wage increases through price increases, automation or more efficient labor scheduling. As a result, dramatic minimum wage increases will result in fewer job opportunities that could leave millions with no wage at all. With the lowest percentage of people working or looking for work since the Carter Administration, is it really time to adopt yet another job killing policy?