Well, this is a shocker! I just can’t believe this is actually happening!!!! We had research and everything!!!!!
So, a little over a year ago, one could have read this current, at the time, article at TP.
Now, for those who don’t know what The Gap is, it is a clothing outfit …. no, not the people who make the clothes or do the work providing the materials to make the clothes, they’re the people who sell the clothes, stock the shelves, and run the cash registers. They’re retail. Supposedly trendy, hipster stuff.
Clothing retailer Gap, Inc. announced Wednesday that it will raise its hourly minimum wage to $10, a change that will affect 65,000 U.S. employees. GAP employees who are now earning the minimum wage will make $9.00 in June of 2014 and $10 in June of 2015. GAP, which also owns Banana Republic, Old Navy, Piperlime, Athleta, and Intermix, operates in more than 50 countries and employs 135,000 people around the world.
“To us, this is not a political issue,” GAP Chairman and CEO Glenn Murphy said. “Our decision to invest in frontline employees will directly support our business, and is one that we expect to deliver a return many times over.” In a release, the company argues that increasing the minimum wage will help retain “attract and retain great talent” and improve customers’ experience.
While many retailers claim that they cannot afford to pay the minimum wage without firing employees or raising prices, research shows that companies paying low wages stand to benefit from the huge stimulus a wage hike would bring to poor workers who spend most of their income on basic needs like food and clothing. ………
Well, there’s research, and then, there’s reality, which has, apparently, came to call the lunatics at the Gap.
Here’s a now current story from Reuters ……..
Apparel retailer Gap Inc (GPS.N) said it would close a quarter of Gap specialty stores in North America over the next few years, including 140 this year, potentially affecting thousands of jobs as the company struggles with a slump in sales at its namesake brand.
San Francisco-based Gap also said it would cut 250 jobs at its headquarters.
The company did not say how many employees would be laid off as a result of the store closures. As of Jan. 31, Gap had about 141,000 full- and part-time employees in about 3,700 company-owned and franchise stores worldwide. …….
Well, not only is this sad, but, it’s bewildering! What about the research? You know that research Think Progress touted just over a year ago!!! How come Gap didn’t benefit?
To the leftards who may stumble across this blog ….
Ladies, it doesn’t matter what the minimum wage is. It could be $1/hr or $100/hr. It doesn’t matter. What matters is how much value a worker provides. Let me go push a cash register at the Gap. If they’re going to pay me more than what I’m doing now, I surely would. (They’d have to raise their minimum wage a bit more, again.) But, the problem, we then have, is that we then wouldn’t be providing enough actual value.
What the left doesn’t seem to understand is that some of us must really do things to add value to our economy. I wish everyone in this country could make $100/hr. But, if the stock boy made $100/hr, then how much more should the atomic engineer make? $500/hr? (~$1,000,000/yr) But, if the atomic engineer and others made that much, and had that much disposable income, how much then, would the prices of the goods and services go up?
But, by that logic, it’s no big deal, right? Raise minimum wage and everyone’s wages go up, and so it’s a no change end sum, right? ….. Except, that’s not what happens. Businesses and business models are unique. Some compete locally, others state wide, others nationally, and still others internationally.
By raising the minimum wage, on any level, it requires that wages go up on the level it was raised. For instance, if the small town I currently live in decided to increase the minimum wage to $20/hr, the local factories would have to double the wages of their employees, else, their employees would just go to work at Sonic or the self-serve get-and-go’s.
But, the problem is, the factories don’t compete locally, they compete nationally, and in some cases, internationally. Suddenly, to keep their workforce, they would have to double their payroll expenses. Staying competitive would then be very problematic, because their competitors didn’t have the same requirement to increase the payroll expenses.
This is what happened to the Gap …. among other things. The biggest thing that happened to the Gap is that people figured out it was expensive to be trendy with their clothes. The Gap then increased the expense to be trendy by their minimum wage hike. Now, we’ve lost entry level jobs, making the poor even poorer. Nicely done, leftards, nicely done.