4 ms·
Incorrect - raising the price of labor does not decrease the demand for labor. It's a movement along the demand curve, not a shift. Ultimately, what will influe
by Helmet 10y ago
Incorrect - raising the price of labor does not decrease the demand for labor. It's a movement along the demand curve, not a shift. Ultimately, what will influence the amount of jobs available at Walmart will be the demand for Walmart's products, macro economic trends, technological innovation, etc. They're obviously not doing this out of a goodness of their heart - their doing it because their stores are a mess and sales have been slumping. By increasing worker's wages, their betting that the increase in productivity will spur demand for Walmart's products.
- kgwgk 10y ago> Incorrect - raising the price of labor does not decrease the demand for labor. It's a movement along the demand curve, not a shift. But wouldn't this movement along the demand curve reduce the number of jobs available (at the point where demand and supply cross)?
- wooter 10y agoRemarkable that simple application of the yet-to-be-disproven (or even seriously contested) theory of supply and demand to the price of labor is downvoted where you'd expect to find rational people. https://fee.org/articles/raising-the-minimum-wage-wont-alleviate-poverty-lowering-it-might/ https://fee.org/articles/raising-the-minimum-wage-wont-allev...
- Helmet 10y agoThat's what my second point was alluding to - I should have been more clear: Since the premise is that the demand for Wal-Mart's products has fallen due to worker unproductivity, their bet is that there will be a new demand curve altogether by increasing their productivity, one that is shifted to the "right" of the original one. The price of labor is counteracted by the new demand for it.
- kgwgk 10y agonine_k's remark was about the general effect of raising the minimum wage. You seem to be talking about Walmart deciding to pay more to their workers, a completely different issue.
- deleted 10y ago[deleted]