Originally Posted by
Sum Ting Wong
And meanwhile they're not using profits to pay back stockholders, loans, fund expansion, pay taxes, set aside for emergencies, etc. Brilliant!
By passing on higher employee costs, higher prices would clearly be detrimental to the rank and file shopper.
For many jobs, the $15 an hour worker won't be twice as productive as the $7.50 worker. This is especially true in "service industry jobs" where there is no way to obtain higher productivity since the job often is one where anyone can learn whatever is necessary in a short period of time.
Ok, accounting 101 homework: please research the differences between NET& GROSS profit margin (hint; everything you mentioned in your first sentence, except stockholders "pay back", is part of GROSS profit margin). Every 'statistic" you used is NET only.
Btw, Walmart is not part of the Service Industry. They are part of the Retail industry. Not trying to be rude, just explaining facts.