WalMart’s Cost-Free PR Stunt

Now I really have to admire the WalMart ad, “A raise in pay raises us all.”‘Tis true, ‘Tis true. It raises not just the wages of all of the minimum wage earners, it raises the pay of everyone above them who will demand that the differential between the lower wage earners and themselves remain.

Know what else it raises? The cost of hamburgers, and plane tickets, and rents, and…

Know something else? The minimum wage workers at the bottom of society will remain at the lowest rung of the ladder, and WalMart will have made a cost-free PR move that makes them look good in the eyes of those who never took — or who failed — Econ 101.

The U.S. is filled with economic illiterates! Some of them work for WalMart, unless, of course, everyone is just playing to the crowd without concern for results.

Appeasing the mob just leads to the mob demanding more, but their position on the ladder doesn’t change because they did not suddenly get better skills or more education.

But the marketplace will respond. It is not static. Remember when Motel 6 was $6 a night?

(And my first home in San Diego cost me $17,300.)

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