No easy answers overhow to set worker wages
Re: April 18 op-ed by Frank Clemente, “Raise pay to $15 at county Wal-Marts”
I don’t remember a whole lot from college business studies. I remember a lot of Genessee draft beer in the basement of my fraternity house. And, oh yea, the wage/price spiral theory.
I agree wholeheartedly in keeping the minimum wage at a respectable level. I think after finding respectable it should be tied to inflation, i.e. COLA (Cost of Living Adjustment).
If Mr. Clemente thinks 15/hr. will solve the problem he may think Wal-Mart won’t raise prices to compensate. They will. And Wal-mart, being the largest employer will by default, put pressure on all other low-wage payers to compete for workers. The result, we still pay even though these workers no longer qualify for public assistance.
The now $15 earners will pay more for necessities, putting them back where they started minus the public assistance. So they might be worse off unless the thresholds for assistance are raised, and we know there is not much appetite for that politically. No easy answers.
By Arnold White