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Walmart scares California city away from minimum wage increase
Wednesday Dec 02, 2015 11:19 AM EST
Walmart helped kill a minimum wage increase in Desert Hot Springs, California, on Tuesday. The retail giant had threatened to pull back from opening a new store in the town if Desert Hot Springs raised its minimum wage to a planned $10.20 in January, with dollar increases to follow in the next two years. On Tuesday, a new city council was sworn in and promptly took the minimum wage off the agenda:
When we look at other cities that have passed these ordinances like this is Los Angeles, Chicago, and Seattle these are large cities with a strong local economy. Right now we are at the point to have the potential to expand for economic development with other jobs that our community needs, and it is our job as a council to make sure that we are also attracting business that will bring good paying jobs for our residents," said Zavala.
Only council member Joe Mekee voted to keep the motion on the agenda. All the other council members voted to remove it.
This is nothing new for Walmart, which helped kill a bill that would have raised the Washington, D.C., minimum wage for big box stores to $12.50 in 2013 (the District subsequently raised its minimum wage to $11.50). Before that, Walmart helped kill a big box minimum wage increase in Chicago in 2006, again threatening not to open stores that would supposedly create lots of jobs. But, as Bryce Covert points out:
The scare tactics are based on the fear that Walmarts refusal to open stores will cost jobs. But thats not likely the case. After Chicagos bill was defeated and Walmarts doors opened, economists found that the companys arrival often led other businesses to close, and the result was that Walmart destroyed nearly as many jobs as it created.
Link: http://www.dailykos.com/story/2015/12/02/1456008/-Walmart-scares-California-city-away-from-minimum-wage-increase
Walmart helped kill a minimum wage increase in Desert Hot Springs, California, on Tuesday. The retail giant had threatened to pull back from opening a new store in the town if Desert Hot Springs raised its minimum wage to a planned $10.20 in January, with dollar increases to follow in the next two years. On Tuesday, a new city council was sworn in and promptly took the minimum wage off the agenda:
When we look at other cities that have passed these ordinances like this is Los Angeles, Chicago, and Seattle these are large cities with a strong local economy. Right now we are at the point to have the potential to expand for economic development with other jobs that our community needs, and it is our job as a council to make sure that we are also attracting business that will bring good paying jobs for our residents," said Zavala.
Only council member Joe Mekee voted to keep the motion on the agenda. All the other council members voted to remove it.
This is nothing new for Walmart, which helped kill a bill that would have raised the Washington, D.C., minimum wage for big box stores to $12.50 in 2013 (the District subsequently raised its minimum wage to $11.50). Before that, Walmart helped kill a big box minimum wage increase in Chicago in 2006, again threatening not to open stores that would supposedly create lots of jobs. But, as Bryce Covert points out:
The scare tactics are based on the fear that Walmarts refusal to open stores will cost jobs. But thats not likely the case. After Chicagos bill was defeated and Walmarts doors opened, economists found that the companys arrival often led other businesses to close, and the result was that Walmart destroyed nearly as many jobs as it created.
Link: http://www.dailykos.com/story/2015/12/02/1456008/-Walmart-scares-California-city-away-from-minimum-wage-increase
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Walmart scares California city away from minimum wage increase (Original Post)
inanna
Dec 2015
OP
Wilms
(26,795 posts)1. Wallmart pulling out would be an added plus with a wage hike.
After Chicagos bill was defeated and Walmarts doors opened, economists found that the companys arrival often led other businesses to close, and the result was that Walmart destroyed nearly as many jobs as it created.
This is probably most often the case.
Mika
(17,751 posts)3. Check out this Walmart doc - The High Cost of Low Wages
The High Cost of Low Wages
SheilaT
(23,156 posts)2. Well that's sad.