Kurt, “Wal-Mart is as profitable as it is by not paying their bottom tier workers enough to even…
Paul Moroni

Not necessarily, tho’ it is a theoretical possibility.

Wal-mart and other powerful and corporations will pay their workers as little as they can get away with–period. They do not create jobs out of any sense of civic responsibility or higher purpose, companies hire bodies to meet market demand. Nor does the market necessarily behave in a logical manner. My expectation is that many companies will pay their workers the legal minimum regardless of the availability or amount of public assistance, the necessity of workers to go on public assistance does not concern them, even though the companies do benefit from it.

However, the notion that their markets are “other, more affluent people, not our workforce,” begins to break down when too many companies minimize their labor costs to the absolute minimum. There will not be enough of those desired “other, more affluent people.” to sustain a healthy market, and that’s a path towards economic collaspe, the leading edges of which we’re already seeing, especially among the embattled wage class. Struggling people tend to pay for not especially healthy food, ever-rising rent and transportation–at whatever cost–to and from work, and little else. They also pay little taxes.

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