This argument about keeping the minimum wage depressed is so fucking absurd. It’s not like the asshole at WMT or TGT are reinvesting the money wisely into plants and equipment. For the most part, they’re jetsetting around the globe, lavishing themselves with ridiculous pay packages and buying back their own stock like imbeciles. Many of these C-level execs are taking far too much viagra and I think there are deleterious effects on cognitive functions associated with too many erections.
At any rate, Goldman runs down a list of names who might be hurt, mildly, by a hike in minimum wage. Could you imagine the outcry if these devils were forced to pay a normal wage and weren’t wholly reliant upon slavery abroad to produce their goods?
Why, their checkered pants might get a crease or two.
Goldman analysts led by Ben Snider and David Kostin, note that for every 1 percent rise in labor costs (above a baseline of 3 percent) there’s a 0.7 percent drag on earnings per share for the S&P 500. That headline figure disguises a big industry-level variation, however.
Names in the low labor cost basket include Netflix Inc., NIKE Inc., Exxon Mobile Corp., and Metlife Inc. Companies in the high-cost basket which are more exposed to higher pay are Whole Foods Market Inc., Yahoo! Inc., and General Mills Inc.
I don’t understand. Where is WMT, TGT and other retailers? What sort of research is this?
If you enjoy the content at iBankCoin, please follow us on Twitter
And shouldn’t it be “…for every 1 percentage point rise in labor costs (above a baseline of 3 percent)…”? Increasing 3 percent by 1 percent gives you 3.03%, not 4%.
#gimpboxresearch
Is English not your first language?
Sigh, all right, let me take your post to task.
Yes, they should have written “for every 100 basis points increase” to make it clear that they were using “percent” as a unit and not a calcualted value..
On the other hand, the meaning in context was still understood…
Maybe there aren’t enough low wage workers in retail? The stores are very bureaucratic, I worked at tjx and at the store level, there was maybe 10 people at minimum wage, 10 near enough where a min wage raise would effect their wage, and 10 in positions that would put them in the lower middle/middle class in the store at one time. I think a lot of the overhead in retail is in non-human resources. Maybe that’s why wmt and tgt weren’t brought up
pay enough to keep turnover low, cash flow high. other than that MEH. this market is weird. people throwing cash at everything with only couple of earnings reports in AND before the stupid oil meeting. green practically across the board. someone trying a mini bear raid in FB. hilarious.
Also missing are Fast Food and other restaurants. MCD and probably even SBUX and PNRA would also be affected.
I’m surprised to see Nike and XOM there, as I assumed that their low-cost labor was not lcoated in the US. Maybe GS got confused between low-income labor and low-income US labor. That woudl explain the missign companies
Wouldn’t the bennefits of Wallmart putting the “mom-and-pop” stores out of business and gaining larger share of the market mostly offset the increase costs of labor?
I’d imagine Amazon benefits from increased costs to Walmart since they’re mostly automated.
For me, population loss or gain will tell us if the min wage hikes work.
Will low income folks, immigrants move to NY, CA over other states FL, TX, CO, AZ?
If NY, CA continue to bleed population don’t see how min wage hike helps the overall economy.
Flashback to 2014 Wallmart stands behind federal wage increase, but against regional.
http://www.bloomberg.com/news/articles/2014-02-19/wal-mart-says-looking-at-support-of-federal-minimum-wage-rise
Maybe the report is incomplete because of the”researchers” being on cocaine.
“It’s not like the asshole at WMT or TGT are reinvesting the money wisely into plants and equipment. For the most part, they’re jetsetting around the globe, lavishing themselves with ridiculous pay packages and buying back their own stock like imbeciles. Many of these C-level execs are taking far too much viagra and I think there are deleterious effects on cognitive functions associated with too many erections.”
True, ‘dat. I meditated with an organization for a while where the guru believed that this was true– that there are deleterious effects on cognitive and emotional functions associated with over-focus on sex. Maybe that’s why adolescents are a bit crazed during their time of raging hormones.
The guru said that those who want to receive the maximum focus and benefit from meditation should be celibate. And he said that anyone who wanted to get a decent amount of benefit from meditation should avoid going to extremes in the frequency of their sexual behavior.
Here’s an article from a couple of years ago about the ricks of being a slaveholder, and a review of the famous book by Piketty.
These sorts of writings below kind of predicted candidacies like those of Sanders and Trump. Both of those candidates are responding to these kinds of issues of the devastation wrought on the rest of humankind by degenerate plutocrat slaveholder types.
The Pitchforks Are Coming… For Us Plutocrats
By Nick Hanauer July/August 2014
http://www.politico.com/magazine/story/2014/06/the-pitchforks-are-coming-for-us-plutocrats-108014
Why We’re in a New Gilded Age
http://www.nybooks.com/articles/2014/05/08/thomas-piketty-new-gilded-age/
“risks” I meant, not “ricks”
Flashback to 2005 Walmart CEO calls for increase in minimum wage.
https://mises.org/library/wal-mart-warms-state
Warning:Austrian economics persepctive…
Thanks for the flashbacks, Hattery. History is hard to keep track of, and often surprising when we find out the facts on it. That’s why I like vox.com and consortiumnews.com They are big on current facts and historical facts. Although overall they tend to come from particular perspectives– progressive in the case of Vox and Libertarian in the case of Consortium– they both dig for details and facts, rather than just trying to prove the case for the ideology they tend to favor.
And thanks for the Austrian economics perspective warning. It’s good to be aware of what the biases are in an article.
We might appreciate generally good service considering low wages people are working for. Particularly in prepared food and dining where we hope good human nature prevails.
Very weak statement; not worthy of Goldman Sachs. You think they are feeling the fall-out of Blankfein’s illness and recovery? Personally I hope the best for him even if he would probably trick me out of my last dime if I dealt with him or his minions in person.