http://www.dailykos.com/story/2014/10/15/1336850/-Wealth-Inequality-hurting-corporate-profits?detail=email
The costs of five years of wage cuts are adding up. For five years corporations have enlarged their profit by taking the money directly from the wages of their workers. However, that is a zero-sum game that only works for a limited amount of time, and now the corporations that get their revenue from the shrinking middle class are starting to worry about their customer base.
Sixty-eight percent of the top 100 retail companies in the U.S. -- a group that includes, Walmart, Apple, McDonald's and J.C. Penney -- say the country's stagnant wages pose a major threat to their bottom lines, according to a new report by the Center For American Progress, a left-leaning think tank.
The researchers pointed out that only half as many top 100 retailers identified flat wages as a business risk in 2006, the year before the The average American family makes less than it did 15 years ago, which The New York Times recently pointed out has not happened since the Great Depression. Everyone slashing wages means that less money for consumer consumption, which translates into less sales revenue for corporations that sell things to consumers.
It's seems so obvious and logical that only an over-educated economist, a corporate spokesman, or a financial pundit could miss it.
It falls into the same category as free-trade, and that opening up free trade agreements with 3rd world nations means that workers are competing directly with impoverished workers, and thus a race-to-the-bottom in wages is inevitable. All this wage slashing and Laissez-Faire Economics has left us with record wealth inequality.Great Recession.
this wreaks of hypocrisy those named as worried that low wages are stagnating their bottom lines are the reason for their own fears. what about those who have no bottom line and are those low wage earners they faux fret about, why are they complicating it was it a misconception to low wage, cut hours and benefits would increase their bottom line? even as a child we learned you have to spend money in order to make it. guess they didn't teach that in Harvard or Yale business classes.
if they want a quick fix quit screwing your workers and stop paying republicans to promote low wages and benefits I guess being part of the party of stupid they didn't get it.
