Raising minimum wage will result in fewer jobs
Walmart recently increased entry-level employee pay close to $10 per hour. How did that work out?
In November, Walmart admitted that the pay increase was a significant cause of its 8.6 percent drop in corporate earnings from U.S. stores.
The company said the higher wages have added $1.2 billion in annual costs. This leaves Walmart with less capital to invest in new stores, and fewer jobs for U.S. workers.
Investors are not impressed with the societal benefit of higher minimum wages, with Walmart stock down by more than 30 percent in 2015.