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View Diary: Walmart could double wages if they charged 20 bucks more a year. (13 comments)

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  •  Well There's Material and Shipping so Wages Are (2+ / 0-)
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    coffeetalk, VClib

    less than 100% the cost of goods. So prices would not be forced to fully double.

    On the other hand WM is investing billions into buying back stock, so if labor cost were to increase they clearly have a source of funds to pay for it without affecting the operation of the company.

    We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

    by Gooserock on Fri Nov 22, 2013 at 12:06:20 PM PST

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    •  The buy back versus wages is a separate issue (0+ / 0-)

      but even then buybacks are ad hoc events that can be stopped at any time, and aren't a recurring expense. The issue suggested in this diary just makes no sense, that a very modest increase in retail sales would cover a doubling of labor costs. I haven't got the time or patience to go look for what percentage of total costs at Walmart is represented by labor, but I guess it has to be at least 20%. How does the "math" work?

      "let's talk about that"

      by VClib on Fri Nov 22, 2013 at 12:21:10 PM PST

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    •  Stock Buy backs (0+ / 0-)

      do not count against revenue in GAAP accounting.

      Reacquiring equity is a form of distributing profits without having to pay dividends.  

      And do we know if they are buying it back as Treasury Stock or if they plan to retire it?

      Красота спасет мир --F. Dostoevsky

      by Wisper on Fri Nov 22, 2013 at 12:26:46 PM PST

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