by Lisa Longo, 9/28/14
How does the economy work and what does the minimum wage have to do with anything? Well, it is a very simple, and a very complicated, question.
Let’s start with the simple part.
I’ve done a talk called “The True Cost of Cheap Sh$t”, and in it, I use the example of socks.
You can buy a bag of a dozen socks at a big box store like a Wal-Mart, for $11.64. That is less than $1 per pair. Now, to maintain those low, low prices, Wal-Mart has to have some basic policies so they can afford to profit while selling such cheap socks. The people who work at Wal-Mart therefore can’t make very much, many make just above minimum wage and many don’t have health care, sick or vacation days, pensions or other benefits.
So how do they do it? And how do their employees live on that low wage? Well, this is where it gets a little complicated, the cost for the low wages, and those low, low prices, are paid by taxpayers, to the tune of $6.2 BILLION a year. …
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