Rollback Prices With Rollforward Wages 😊
The Lowdown : Walmart just announced that it is increasing salaries, giving bonuses, and extending parental paid leave, all thanks to President Trump’s new tax bill. Walmart is one of eighty-one companies that is upping minimum wage and employee benefits, which could force other American businesses to follow suit. This all comes after the tax reform bill faced heavy criticism. So, what’s the deal? Is the bill a doomed flop, or is it boosting business and employee success?
Yay! Benefits: When big businesses can save money on taxes and invest more in salaries, everyone benefits. An economic advisory council in Washington said that tax cuts could lead to a $4,000 increase in the average American family’s income every year. That’s pretty sweet.
Boo! Downsides: The lower and middle classes will, at first, have minimal profit from the bill. The biggest benefits will go to large banks, corporations with real estate, and the top 5% of the upper class. Individual tax cuts are also temporary, whereas corporations will have long term cuts.
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Supporters of Trump’s tax bill call this wage boom the “afterglow” of the tax cut, and their focus is on the positive effect on U.S. companies. They say Walmart will likely be a trendsetter in retail, forcing its competitors to raise their minimum wage to $11 or more.
Critics of the bill still maintain that these tax cuts spell “doom” for Republicans because of their unpopularity, which may have backlash with voters. They call the wage increases ‘publicity stunts’ from companies hoping to earn Trump’s favor. They also point to companies like Walmart, AT&T and Comcast who announced bonuses and wage hikes but quietly laid off thousands. Walmart closed at least 68 Sam’s Club stores the same day they announced the wage hikes.
Are we headed in the right direction?
It’s true that President Trump’s bill was unpopular with the American people. However, it’s also true that the bill has reaped rewards for major companies like Walmart and AT&T, who are passing them along. The increased salaries and bonuses may offset the original upset. Long term effects on the economy are yet to be seen.
Walmart employees earned the raise because...customers.
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