There is enormous public support for increasing the minimum wage in recognition of deep recessions and income equality. DEMOS' new report shares how it can be done:
American workers are working harder for less, with productivity rising but living standards stagnant or declining.1At the same time, stock market wealth and incomes for the highest-paid Americans have risen.2 Against this backdrop, the pay practices of the nation’s largest private employer have come under increased scrutiny. Walmart, with 1.3 million U.S. employees and $17 billion in annual profits, sets standards for all other retailers and across the supply chain of one of the nation’s fastest growing industries.3 Walmart’s practices impact the public sector and taxpayers as well when employees earn too little to meet their needs and require public assistance.4 Finally, Walmart is a leader in promoting an employment model in which workers earn too little to generate the consumer demand that supports hiring and would lead to economic recovery. In the last year, Walmart employees themselves have been increasingly vocal in protesting their low pay. Since the last holiday season, Walmart employees in stores throughout the country have repeatedly spoken out in pursuit of a modest wage goal: the equivalent of $25,000 a year in wages for a full-time employee.
- Walmart workers and a growing number of community supporters are taking a stand this holiday season, calling for wage increases and sufficient hours on the job to earn the modest income of $25,000 a year. This brief explores one way to pay for raises.
- Walmart spent $7.6 billion last year to buy back shares of its own stock. The buybacks did nothing to boost Walmart’s productivity or bottom line. If these funds were redirected to Walmart’s low-wage workers, they would each see a raise of $5.83 an hour.
- Curtailing share buybacks would not damage the company’s competitiveness or raise prices for consumers.
- If Walmart redirected its current spending to invest in its workforce, the benefits would extend to all stake-holders in the company—customers, stockholders, taxpayers, employees and their families—and the economy as a whole.
LINK TO FULL STORY AND REPORT
A Higher Wage Is Possible