Costco Raising Minimum Wage as Competition for Workers Grows
I thought that this article was interesting because there has been a lot of talk in the news about minimum wage increasing. This article talks about how Costco is raising there minimum wage by $1.50. There are mixed feelings about the hike in minimum wage, in another article they asked peoples opinions on raising the wage and they got mixed answers. on one side people are all for the hike cause they feel that it will make everyday expenses easier to pay for low income families. on the other hand their are people against this increase cause they say its going to just increase the cost of items they buy at the store and that's not fair because they aren't getting an increase in their wages.
link:http://finance.yahoo.com/news/costco-raising-minimum-wage-competition-172259632.html
Nice article. This increase in minimum wage defiantly makes applying for an entry level job at Costco more appealing. Walmart who also raised their minimum wage, but only by $1, saw a loss of $2.7 billion in the past two years so it will be interesting to see how this hike affects the company.
ReplyDeleteI like how big companies are really trying to help out their employees. Whether or not this will help Costco in the long run, it is nice to see that people will be getting paid more. I think in the short run they might lose money but in the long run they should figure it out and it will be worth it
ReplyDeleteThe increase in minimal wage can do increase the income of people of low wages. However, as we mentioned in class that the minimal wage does not explain the majority of the unemployment as most worker's wages are able the minimal wage. At the same time, we can expect that the increase in income to increase their personal savings. Hopefully, there would be some positive influence on investment.
ReplyDeleteI find it interesting that big businesses are all raising the minimum wage of their workers. First Walmart rose the wages, and now it seems like a domino effect with other large retail companies. Raising the minimum wage has both its pros and cons like most economic decisions do. However, in the kind of economy we have right now, with unemployment rates as low as they are, companies are probably finding that raising the minimum wage helps to keep employees at their current jobs so that they do not leave and cause the company to retrain more employees. Additionally, higher minimum wages will increase the worker's disposable income, and they will be able to consume and save more which will drive economic activity.
ReplyDeleteI firmly believe the minimum wage should already be raised to $15. The minimum wage in many of the states is clearly not a livable wage, although that may not be the intention. Will this minimum wage increase for Costco affect their in-store prices?
ReplyDeleteThis is a great choice of article. First off, this a bold move by Costco to raise their minimum wage by as much as $1.50. The two sides for and against this raise in wage bring up interesting points. Will Costco sold items really raise significantly in price in order to compensate for the company raise in minimum wage? If so, this situation may be unfair to non-employees of Costco who are not getting a raise in wage at their comparable respective jobs.
ReplyDeleteThis is good for Costco's business model because raising the minimum wage encourages more employees to seek out jobs at Costco and also encourages other stores similar to Costco to follow suit. Overall this should help with lowering the employment rate and increase the number of people in the labor force looking for jobs.
ReplyDeleteIm not sure this would help lower the unemployment rate. I do believe that more people would be interested in obtaining a job but the demand for labor has a negative slope. So as wages go up, firms would want to hire less workers rather than more.
DeleteBy Costco raising their minimum wage it will probably increase the productivity of workers at Costco bringing Costco more profit with a slight raise in wage for their workers. Hilary mentioned that many big companies have begun to raise their minimum wages and perhaps Costco needed to to stay at a competitive productivity level. However, if minimum wage rises as a whole it will be harder for low skilled workers to stay employed and the unemployment rate will rise.
ReplyDeleteBy Costco raising their minimum wage it will probably increase the productivity of workers at Costco bringing Costco more profit with a slight raise in wage for their workers. Hilary mentioned that many big companies have begun to raise their minimum wages and perhaps Costco needed to to stay at a competitive productivity level. However, if minimum wage rises as a whole it will be harder for low skilled workers to stay employed and the unemployment rate will rise.
ReplyDelete