All because of a profit motive. Capitalism at its finest.
While Wal-Mart[/B]'s (http://www.thestreet.com/quote/WMT.html) announcement that it would be raising base wages was great PR, it is properly viewed as a "defensive" move. That is, Walmart has simply read the tea leaves, sees that finding qualified employees is difficult, realizes that it will have to raise wages to attract new employees, and more importantly, realizes that it must do so to keep its existing labor force. As the largest private sector employer in the U.S., Walmart knows better than most how much labor turnover costs (i.e., the cost to hire and train a new employee). As a result, one should view Walmart's actions as a preemptive move to protect its existing labor force. And that alone says a lot about the near term future of wages in America.
http://www.thestreet.com/story/13077482/1/wal-marts-bold-move-means-an-era-of-higher-wages-and-prosperity.html?puc=yahoo&cm_ven=YAHOO
While Wal-Mart[/B]'s (http://www.thestreet.com/quote/WMT.html) announcement that it would be raising base wages was great PR, it is properly viewed as a "defensive" move. That is, Walmart has simply read the tea leaves, sees that finding qualified employees is difficult, realizes that it will have to raise wages to attract new employees, and more importantly, realizes that it must do so to keep its existing labor force. As the largest private sector employer in the U.S., Walmart knows better than most how much labor turnover costs (i.e., the cost to hire and train a new employee). As a result, one should view Walmart's actions as a preemptive move to protect its existing labor force. And that alone says a lot about the near term future of wages in America.
http://www.thestreet.com/story/13077482/1/wal-marts-bold-move-means-an-era-of-higher-wages-and-prosperity.html?puc=yahoo&cm_ven=YAHOO
