Low Wages the Reason for Low Black Friday Numbers?
Posted at 11:49 a.m. on Dec. 3, 2013
George Packer addresses the question: “Why didn’t the new, extended Black Friday weekend achieve the desired results in consumer dollars?”
The short answer: “Americans are too poor to stimulate economic growth.”
“One obvious solution is to pay them more—more than the federal minimum wage of $7.25 an hour.”
“You would think that the major American retailers, keenly aware of the problem of ‘slow wage growth’ and still smarting from their lousy Black Friday numbers, would be leading the protests in favor of higher wages
“[But retailers] argue that higher wages would mean higher prices and fewer employees. Though there is very little evidence to support the notion that minimum-wage increases lead to layoffs and unemployment, and a great deal of evidence to refute it, the retailers are sticking to their story, which is the story of the American economy of the past generation: lower prices and lower wages—a race to the bottom.”