Minimum wage raise – There's more than meets the eye

Monday, October 8, 2018
 | 
Chris Woodward (OneNewsNow.com)

minimum wage illustrationThere are many things in business that involve trade-offs, and pay hikes at Amazon appear to be no different.

Since Amazon announced it was raising its minimum wage to $15 an hour and giving many employees already making that amount a raise, CNBC and other news outlets have said that Amazon is doing away with monthly bonuses and stock awards to pay for the pay hike.

Economist Aparna Mathur of the American Enterprise Institute says the minimum wage increase was a business move to get and keep workers in this job market.

Mathur

"They're not doing this out of philanthropy," she asserts. "If you're actually going to face an increase in costs, you might trade off other things that they might think that people value less. We have good research in economics showing that's often the case; [for example,] when you'll see state minimum wages being hiked, employers often react by cutting down other benefits so that on net compensation costs don't change all that much."

Amazon says that employees getting a bump in pay, while losing bonuses and stock awards, are going to be better off. Still, Mathur notes the possibility that Amazon one-day automates many of the positions in question.

"There are all these other things that we also need to worry about beyond just the hike in the minimum wage," she says. "There's a broader compensation package that we need to look at."

Consider Supporting Us?

The staff at Onenewsnow.com strives daily to bring you news from a biblical perspective. If you benefit from this platform and want others to know about it please consider a generous gift today.

MAKE A DONATION

Comments

We moderate all reader comments, usually within 24 hours of posting (longer on weekends). Please limit your comment to 300 words or less and ensure it addresses the article - NOT another reader's comments. Comments that contain a link (URL), an inordinate number of words in ALL CAPS, rude remarks directed at other readers, or profanity/vulgarity will not be approved. More details

SIGN UP FOR OUR DAILY NEWSBRIEF

SUBSCRIBE

VOTE IN OUR POLL

What happens when educational institutions publicly "repent" of past sins like racism and slavery?

CAST YOUR VOTE

GET PUSH NOTIFICATIONS

SUBSCRIBE

LATEST AP HEADLINES

Wisconsin's Walker signs sweeping lame-duck GOP bills
Michigan governor signs measures to scale-back initiatives
White House dismisses Cohen accusations as lies
Pair of abortion restrictions in Ohio head to Kasich's desk
Florida Senate won't block election chief's suspension
Israeli troops arrest dozens in West Bank raid

LATEST FROM THE WEB

Dershowitz: Cohen doesn't seem to understand the difference between 'wrong' and 'illegal'
Feds collect record taxes through November; still run $305.4B deficit
Communist officials threatening Cuban pastors
Former FEC commissioners: Trump-Cohen 'hush' payments not necessarily a violation
Jared Kushner as next chief of staff? Reports say Trump is considering it

CARTOON OF THE DAY

Cartoon of the Day

REASON & COMPANY

NEXT STORY
FL leads country, overtakes NH, in economic freedom

cash 100-dollar billA new report examines the most "economically free" states --- and the worst.