Wal-Mart’s Pay Hike Decision Will Have A “Ripple Effect” On Other Industries

SOURCE: blog.fusioncharts.com

Conveniently, as we are talking about minimum wage in class, some big companies are beginning to shift to change the minimum wage. In this article, 'Wal-Mart's Pay Hike Decision Will Have A "Ripple Effect" On Other Industries', the author discusses how Wal-Mart has decided to increase their minimum wage to 9 dollars/hour from the national average of 7.25$/hr. They are also planning on increasing it to 10 dollars an hour later in 2015 as well. Wal-Mart said they bumped up the pay because it would make their workers happier so they would invest more time into working harder at their jobs. This in turn would make customers have a positive experience when visiting Wal-Mart and  would generate more profit for the company all together. Following Wal-Mart's move, TJ Maxx has planned to pull a similar move by raising their minimum wage to 9 dollars an hour as well. Because of these raises in pay, this has already begun to affect some states' decisions on whether to increase minimum wage or not. The governor of New York has declared that he wishes to increase New York's minimum wage for jobs that depend on tips to 7.50/hr. Chicago, likewise, is going to raise it's minimum wage from 8.25 to 10 dollars an hour this year and in the future, hopes to raise it to 13 dollars an hour by 2019.

I thought it was cool to have an example of companies today trying to increase minimum wage to help its' employees out. It was also convenient to have this come out as we are debating the raising of minimum wage or not. I am glad that Wal-Mart is choosing to raise their minimum wage for their employees because if customers do have a better experience shopping at Wal-Mart, they are more likely to return and spend more money there which will benefit the company and everyone all together. I think it's nice that Chicago is choosing to bump up minimum wage because this will make a difference in a lot of people's lives. People who are struggling and can only make minimum wage will be able to pay a little more for things with the extra cash that will be coming there way. While there might be some downsides to increasing the minimum wage such as companies and businesses letting some workers go because of their inability to pay for all these workers, I think the benefits out weigh the downsides and will help a lot more people out.

1. Do you think that Wal-Mart's decision to raise their minimum wage was smart? Why or why not?

2. Will this raise in pay cause other companies to follow in Wal-Mart's steps and increase their minimum wage as well?