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

Are you surprised a prominent Democrat is questioning the usefulness of the U.S. Constitution?

CAST YOUR VOTE

GET PUSH NOTIFICATIONS

SUBSCRIBE

LATEST AP HEADLINES

Trump plans big announcement on Saturday on shutdown, border
White cop who shot black teen gets nearly 7 years in prison
Supreme Court inaction suggests DACA safe for another year
Total lunar eclipse meets supermoon Sunday night
Pentagon IDs 3 Americans killed in Syria attack
Feds confirm jailed Iranian TV anchor not charged with crime
US, North Korea hold talks aimed at 2nd Trump-Kim summit

LATEST FROM THE WEB

Mueller team disputes BuzzFeed report claiming Trump told Cohen to lie
Trump administration expands grounding of gov't jets
CNN panel is stunned by host's bizarre question about Karen Pence teaching at Christian school
Seven teacher licenses suspended amid massive cheating case
State worker fired for signing emails 'in Christ'

CARTOON OF THE DAY

Cartoon of the Day
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.