The Real Meaning Of $ 9 An Hour Is Not Just Good For The Business

708 Words Jun 16th, 2015 3 Pages
In the TIME Magazine article titled “The Real Meaning of $9 an Hour”, Rana Foroohar explains how Walmart’s modest wage hike to a $9 an hour is not just good for the business, but a proof that the U.S economy is doing better. On February 2015, Walmart decided to raise the minimum wage of its workers well above the federal minimum wage by $1.75. For the minimum wage workers, who have spent much of the past year in protest, this moderate increase of pay might be considered as a major victory towards their fight for $15 minimum. It is also highly likely that other low-income workers will see a raise, not only in retail but other sectors since all compete for the same workers as Walmart. It also appears that Walmart sets the standards for most retail sector wages due to the large number of workers and when the news came out other retail stores started adjusting their workers’ wage as well.
The main argument that most politicians and higher level managers bring to discredit the wage increase is their fear that it might end up cutting jobs or creating a higher prices to account for the raise. They regard that minimum wage increase is a violation of economic freedom and leads to high unemployment. For example, according to Foroohar, “Congressional budget office found that a $9 minimum wage could put zero to 500,000 low-end jobs at risk” (Foroohar 20). This analysis shows a narrow focus on the loss of jobs only, it does not emphasize on the fact that it pleases the majority of…

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