The Not So Fuzzy Math on Walmart
Posted by Bob Lord
I posted last week on the plight of workers at Walmart. In that post, I threw out some rough numbers to suggest how painless it would be for Walmart and other retailers to reduce dramatically the financial pain they're inflicting on their workers:
And it would take so little to improve their lives. Assume those Walmart workers average 1500 hours per year. That's 1.5 billion hours. It would cost $3 Billion to give each of them a $2 per hour raise, and $3 Billion is less than one percent of Walmart's annual sales, an amount it easily could pass on to customers. Does anyone stop to think of this trade-off — a three quarters of a percentage point savings to customers, versus a 20% pay increase to poverty level workers?
Frankly, I thought that my rough math may have overlooked something. But it turns out I'd gotten it just about right. Here's Robert Reich at Truthdig: