The Fall Of WalMart
Forbes Is Blaming The Wrong Issue
Facebook is a great place for a writer to procrastinate. One can spend hours there looking at all of the funny/political/cute memes and never get bored. Of course if there is a deadline looming or projects are being backed up, then maybe Facebook should be closed and Word opened but that's neither here nor there. Once in awhile though, a thread can be picked up that makes for a great article. The WalMart stock slide is one of those items that can be very fascinating or very boring, depending on how one feels about Wall Street. Even more interesting though is how Forbes Magazine panders to the 1% and basically calls the people calling for $15 an hour minimum wage economic terrorist, killing WalMart,
The argument is that because WalMart is raising their wage by a few pennies, they are lowering their profit levels. On paper this makes sense, if a company is spending more money than it is taking in, of course the profit levels falter. Of course Forbes is assuming here that WalMart won't be able to make up the difference with higher sales. The assumption is that everything will stay the same and that there is no chance in retail hell of a sales renaissance.
A better trained staff can and will be able to sell more items. McDonald's did away with the "Do you want fries with that?" line a long time ago, but they still use suggestive selling every day in their stores. Now they're pushing into desserts and coffees with great results. It should be noted that some fast food restaurants in New York City already have to pay $15 an hour already.
One of the real problems that WalMart is facing is a tax evasion scandal that was uncovered by United Food & Commercial Workers International Union. It was discovered that the mega-retailer was hiding $76 billion in assets. Why wasn't this brought up in the Forbes article? Because Tax evasion doesn't play well with the wealthy, it would mean that they could be found out too. It is also a very good reason why investors might not want to hold on to the stock.
Yet Forbes lays the blame on an issue that affects the bottom rung of the pay scales. It's typical behavior for the wealthy. Blame the floor workers, call them greedy, all the while they sit in their offices worrying about whether the champagne they ordered from France will arrive in time for their big soiree.