How the Walmart Model Makes Raising Wages Make Perfect Sense

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I'm not a liberal nor a conservative, but there's major problems in our economy for average workers. As a company that hires a lot of Americans and is in many communities throughout this country, Walmart impacts a lot of people, businesses, communities and local, state and federal governments. It provides a powerful model in which to explore wages, compensation, and the impacts of policy on individuals, other businesses, the government, and the broader economy.

Now, all the whining about competition from Walmart edging out the competition is on its face bullshit. However, Walmart doesn't pay its employees fairly nor does it adequately compensate them with benefits either. There are equitable pay issues for women and minorities as well. This is compared to the top level executives that rake in the big money off the backs of all of these low level employees. 

How much did Walmart's CEO make last year? $25.6 million. This is after the company is making the largest quarterly earnings in its history. 

(Source: http://fortune.com/2015/02/19/wal-mart-wage-hike-2-million-hours/ )

Now, let's backdrop that $25.6 million salary and record earnings with the welfare benefits that those low wage employees require to make ends meet that make the CEO salary possible and create the record earnings.

Taxpayers spend $6.2 billion in support of the Walmart low wage employee business model.

(Source: http://www.forbes.com/sites/clareoconnor/2014/04/15/report-walmart-workers-cost-taxpayers-6-2-billion-in-public-assistance/ )

Now, let's examine further how this negatively impacts the communities and businesses that are home to Walmart. 

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All of these low wage workers aren't even able to pay their own bills with their low wage earnings working at one of the most profitable businesses in America.

So, all of those low wage workers aren't spending their money in local businesses in the way they would if they were making a decent living wage . . . say, if the CEO wasn't making $25.6 million for raping the taxpayers of $6.2 billion in welfare benefits to his employees, adding to state and federal deficits.

Imagine that world where all of these American workers, not just at Walmart, but across the lower tier of wage workers made just five or ten dollars more an hour. 

Everyone would benefit. 

There would be less need for welfare benefits. Deficits would decrease. 

There would be more income tax revenue. Deficits would decrease. 

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There would be more spendable income. Small businesses would benefit.

Sales tax revenues and business profits would increase.

Local, state and federal deficits would decrease. 

People would feel better that their work is actually paying off. Healthcare costs would decrease. Local, state, federal, business and personal costs would decrease as a result. 

It only makes sense.