Walmart Minimum Wage Analysis

Wal-Mart: Minimum Wage versus Fair Wage

Wal-Mart has employed millions of people over the past fifty years. The first Wal-Mart, employing just a handful of people, was opened by Sam Walton 1962. Now, Wal-Mart employs 2.2 million associates (Wal-Mart Stores, Inc. 4). Wal-Mart is under fire for paying entry-level employees market wage for their work. Market wage (minimum wage or slightly higher) is the price of labor determined by the labor market. Is Wal-Mart hindering employees from achieving the American dream or is the retail giant a victim of mud-slinging? The American dream is a citizen’s ability to amass wealth and prosper through hard work, determination and initiative. Social activist, Patrick Stall, explains his viewpoint on wages
Cutting through the clutter, his first statement claims that Wal-Mart is responsible for wage trends in the United States. When Stall’s statement is viewed in this light, it is easy to see the hazy generalization being made. Wal-Mart’s internal practices concerning their employees has no effect on American wages as a whole. They are not responsible for wage fluctuation, be it positive or negative, in the United States economy. Stall’s second statement concerns Freedom of Speech. He elicits all Americans to realize this issue is directly affecting them, violating their constitutional rights (Madison 1). This argument is also flawed. Stall’s assertion fails to recognize that an unauthorized protest on private property is not a violation of freedom of speech. Stall admits that the protesters were on private property; furthermore, they didn’t have permission to protest there. Wal-Mart requesting police supervision doesn’t show violation of constitutional rights, it shows a corporation’s desire to protect itself and its customers from liability that could possibly result from the protest. Reviewing the factual evidence shows that Stall’s accusations lack substance. Stall uses wishful misconceptions to gather consumers to his bandwagon. This is a powerful example of how propaganda is used to lead uniformed people against
“Although 50 percent of Americans in a recent study admitted to spending more than they earn, only 10 percent said they were living beyond their means” (Kavoussi 1). As our society becomes more educated, the monetary divide between social classes expands. Making a living with an entry-level position is very difficult; nevertheless, the expectation lower class individuals to have an upper class lifestyle endures. Michael I. Norton, Professor at Harvard Business School explains that “the expansion of consumer credit in the United States has allowed middle class and poor Americans to live beyond their means, masking their lack of wealth by increasing their debt” (1). This unrealistic lifestyle eventually delivers many individuals into bankruptcy or homelessness. Unfortunately, there is no way to easily tell individuals that they may be unable afford luxury cars and vacations working an entry-level positon. Many individuals in this situation also don’t want to admit this reality to themselves. In this self-destructive pattern, the affected lose sight of “why” and “how” their poor situation happened and place blame on the easiest target: The machine of