Wal-Mart's Minimum Wage Breakdown

Barry Ritholtz writes that Wal-Mart's Minimum Wage Breakdown is a self-inflicted wound.

There is also the issue of the negative PR generated by Wal-Mart’s low, low wages. As we discussed back in 2013, many of its full-time employees receive a full array of federal and state welfare. Wal-Mart has become the nation’s largest private-sector beneficiary of taxpayer-supported public assistance (see "How McDonald's and Wal-Mart Became Welfare Queens"). Indeed, the U.S. taxpayer has been subsidizing the wages of this publicly traded, private-sector company to the tune of $2.66 billion in government largess a year.

Although many factors contributed to the move, the simple reason for the increase is because Wal-Mart has stopped growing. Same-store sales have been little changed or declining for some time now. When we look at the underlying causes, the company’s workforce, and how it is managed, are the prime suspects.

Emphasis Mine

Cutting welfare means cutting Wal-Mart's profits!

If you treat your employees like shit, they will treat your customers like shit. Then you wonder why no-one shops here anymore.