On November 2018, Vermont Senator Bernie Sanders introduced the “Stop WALMART Act”. The proposed bill will prevent large corporations from buying back stocks unless they pay their employees a minimum of $15 an hour. To many across the country, this seems like a good idea. But is it actually?
The raising of the minimum wage to $15 may cost jobs. It would mean that stores that operate under little profit would have to close down unless they double their profits. This would vary from state to state as some states have higher minimum wages than others. Another way that the “Stop WALMART Act” could cost jobs is that it would force employers to use more automation. This would lead to the jobs being permanently lost. There is no reason to speed up the process of AI taking the jobs of millions of people. Walmart has actually raised the minimum pay for their employees from $9 to $11 without any orders from the Government to do so. This happened in the wake of the Trump Tax Cuts.