:: The Rational Radical Blog ::

Wednesday, March 09, 2005

New Math at Wal-Mart

Here's some food for thought:

To the Editor:

Re "Don't Blame Wal-Mart," by Robert B. Reich (Op-Ed, Feb. 28):

If Wal-Mart offered high-paying union jobs, as do the auto industry and the government, it would be seen as a savior in small towns and welcomed into big cities.

Would increasing wages cripple the company? If the wages of Wal-Mart's 1.2 million workers were increased to $25 an hour (from about $10), the company's costs would go up by about $36 billion.

Passing on that increase to consumers would add about 12 percent to the company's current annual revenues.

Therein lies the choice: jobs that pay about $50,000 a year for more than a million Americans, or a 12 percent discount on Gummy bears and barbecue grills.

William Seay
Nyack, N.Y., March 1, 2005
The writer, a psychologist, is a union representative for the New York State Public Employees' Federation.

Jack Clark 8:42 PM [+]   
Post #111042974196780185