From Jed Graham at Investor’s Business Daily, Why Wal-Mart’s Shrinking Profit Should Scare Liberals:
Wal-Mart’s second profit warning in two months should be a wake-up call for the political left. If America’s largest private employer is struggling with its own pay increases, how will other businesses cope with even larger minimum-wage hikes?
Long the scourge of progressives for its relatively low wages, Wal-Mart (NYSE:WMT) announced early this year that it would unilaterally boost its own base wage, first to $9 an hour this past April and to $10 by February 2016.
“People have known that $10 was coming for a while,” Wal-Mart CEO Doug McMillon told CNBC’s Jim Cramer on Wednesday. “This news today was just we quantified it for everybody.”
Wal-Mart’s stock price promptly suffered its sharpest one-day sell-off in a quarter century, diving 10%. Shares kept falling, ending the week down 11.7%.
The stunning hit to profitability for the nation’s biggest retailer raises serious questions about the Democrats’ economic agenda to raise the minimum wage to $12 or $15 an hour, while asking low-wage employers to provide their workers with health insurance and paid sick leave.
Read More At Investor’s Business Daily: http://news.investors.com/101615-775944-walmart-earnings-cut-is-minimum-wage-warning.htm#ixzz3orl2cYR5 Follow us: @IBDinvestors on Twitter | InvestorsBusinessDaily on Facebook
You mean our largest corporations are not a bottomless pit of cash and benefits hoarded by greedy Wall Street tycoons in tophats and tails? You mean the endless benefits regulated and mandated from the progressive state have a cost? Do you think this may be why middle class wages have stagnated? Or maybe this is why business closings have surpassed new business startups?
Couldn’t be. Could it?