Wal Mart is closing stores and has a dim outlook for the future. The primary reason for this is the reduced food stamp benefits to millions of Americans. Competition from other big box stores like Costco and Amazon (where they pay their employees a decent wage) are also causes for bearish view of Wal Mart's future finances.
I wonder if the execs at Wal Mart are going to get the message. If you pay your employees more money, they will spend more money, not simply at Wal Mart, but in the economy at large. This will, in turn, lead to more people being hired at other firms and then...spending more money at Wal Mart. This means that the execs make more money anyway.
Perhaps a review of Adam Smith is in order for them.
4 comments:
This WalMart right? The one left-tards just love to hate?
Say's Law of Markets, And Why Money and Wealth Are Not the Same Thing
Nice post GD. Maybe someday M will get past the stupidity and limited applicability of Keynesian economics....maybe.
Funny, but the article doesn't support the message that Markadimbulb says that Walmart execs are supposed to "get". Walmart caters to a different market than Costco, and Amazon sells diddly-squat for food stamps. The point of the article is that Costco and Amazon have low employee turnover, very low theft rates by employees, and that even though Costco pays higher wages, it does so while employing 38% fewer people than it's competitors (likely due to lower turnover and higher productivity). And that's going to result in more people spending more money? So actually, it's fewer people with more money to spend, and more people with much less money to spend. In other words, our highly educated dumb person still has severe reading comprehension problems. Or as Gomer would've put it, "Surprahz, surprahz, surprahz!"
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