Walmart Minimum Wage Increase In Washington, D.C., Vetoed, But Is $12.50 An Hour Affordable?


A Walmart minimum wage increase in Washington, D.C., was vetoed by the capital city’s mayor.

As previously reported by The Inquisitr, a fast food workers strike argued for $15 an hour.

Walmart employees began striking in 15 US cities recently. The Walmart strike in Washington, D.C., demanded everyone’s pay be a raised to a minimum of $12.50 per hour. The strike also claimed 20 Walmart employees were illegally fired for being involved in the strike and demanded Walmart reinstate them. Walmart responded by saying they’d leave Washington, D.C., if the vote went through and they claim the “average full-time hourly associate” makes $12.83 per hour.

The mayor explained why he vetoed the Walmart minimum wage increase in Washington, D.C.:

“The bill, while well-intentioned, is flawed and will fail to achieve its goals. It would result in significant economic harm to the residents and areas of the district most in need of jobs.”

Interesting facts have came out of the arguing over whether Federal minimum wages should be raised. One study claimed McDonald’s could afford to pay $15 an hour to their workers with only a small increase to menu prices. But the only reason McDonald’s could afford this was precisely because they were McDonald’s. Their sales volume is so much higher compared to other fast food chains, which meant worker’s salaries were a relatively low percentage of overall sales income. Other fast food chains might not realistically be able to afford such a large increase without largely affecting prices.

The Walmart minimum wage increase in Washington, D.C., is similar to the McDonald’s case study in one major detail: sales volume. Walmart is bigger than Home Depot, Kroger, Target, Sears, Costco, and K-Mart combined according to financial reports, making more than $16 billion in 2012 with their 1.3 million workforce. Americans spend $42.8 million every hour of the day at Walmart, which works out to be $41,400 every minute. So every minute Walmart makes more gross income than two Walmart employees make in a year if they are paid minimum wage.

A 2011 study by CUNY estimates a Walmart minimum wage increase would result in Walmart prices rising by about 1.1 percent if Walmart management passed a salary increase onto all customers. Assuming a person visits Walmart 26 times a year, this cost increase would amount to 46 cents extra per Walmart trip and assuming the average Walmart customer spends $1,200 per year this would result in roughly $12 annually.

Do you support a Walmart minimum wage increase in Washington, D.C.?

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