You're watching...
Tamara Draut, Demos VP of policy and research, on a new study from Demos.org that found raising retail wages would result in 100,000 jobs created for ...
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
-- but -- spear the consumer simply don't have cash to spend this year.
Well a new report from diva says the answer it's clear just raise the minimum wage that workers will have more money.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Camera -- everything is so much for coming on thanks for happening so you don't employer only has so much money.
To spend time labor that's one of their costs of production so you raise the rate they have to.
Well here's says that let's play -- seven.
Real life worker so let's imagine cashier who right now makes about 181000 dollars a year.
If we lift that up to 25000 couple really great things happen she's gonna spend that money in the economy and fact she's gonna spend a lot of that extra raise.
At the retail store that employees her so.
Our study models the effects of this basically.
We can think -- -- lower paid employees as job creators when we give them the wage issue looking at increasing GDP if we assume.
That companies decide to only pass on about half of the constant of the increased payroll yeah apartment price.
Increases.
You know you're looking at twelve billion dollar I had I totally hear what you're saying the problem is that money doesn't come out of that marriage -- where does that come from the money treat we'll.
It comes from it comes from the company and they're gonna it would have to take it from someone they take -- from other work.
-- here's says the good news is that we actually have some real life companies that we can compare companies that -- better wages than their counterparts so cost -- great example.
-- -- actually has nearly double the sales per employee.
Then Sam's Club which is the Wholesale Club owned by Wal-Mart.
What we know and you know this has been studied by folks at MIT Harvard Business School Wharton business school is that.
The new staff appropriately customers are happy and happy customers spend more money.
But they also have to charge higher prices and if they're gonna that if your cost of labor goes -- It two choices they can cut their employees are they can charge their customers more so that's those very employees are talking about we're gonna turn -- spend money in the store.
They're gonna buy eggs or whatever it is for a higher price to support that higher wage the money doesn't come from -- that he's so we looked.
The price increase and here's here's what would happen if they pass on half of the cost we're looking at fifteen cents a shopping strip shopping trip that's about seventeen dollars a year.
Let's say they pass on the 100%.
Of the additional payroll cost in terms of prices yeah thirty dollars a year more.
That idea that we have to -- low wages.
Have low prices.
Is -- fiction it's not true there -- real choices that employers can make Karen and be good for the economy could be a private driven stimulus we could.
You wouldn't it I think I have to have caught on their customers I mean they're passing it right don't want it doesn't come from billionaire.
It's gonna come from -- customers it's gonna come from their employees you're gonna happen in fact.
The last time and and also the employment rates of the last time the minimum wage was raised the last time they actually did this July 24 2000 night.
Unemployment actually rose and continued to rise for months and months and months after they raised -- that at minimum age.
Study after study has -- that actually in states that have higher minimum wages than the federal -- and then that there has not been that negative.
Impact on -- on employment.
Rates so you know this is.
Actually -- good thing for this is -- actually mean I'm looking at the numbers of the last time we did this and it went up I mean at what went from seven point 8% to eight point 3% I mean it's that's that's the date you can't argue with the data.
What was they feared they had 2000 -- -- -- right.
Well 2009 was pretty rough patch so just this -- -- rough patch -- it it -- that anything's gonna happen yet fewer jobs.
Now not in the retail sector in fact we know that it's gonna lead to more jobs because.
We know that lower paid employees spend about 20% of their earnings at retail stores.
So retail stores and again about 45 billion dollars in extra sales the following near -- -- this waiting for their own rate increase that's what they're just so.
Gonna have.
Baskets filled up a lot higher with goods because happy.
Shoppers buy more stuff and my and a -- -- They're happy because -- -- -- I just know because right now one of the things that is rampant across retail is under -- So let's say Tuesday's.
Worst sales -- -- project oh wait those are higher than hire more people.
If wages are higher that and that's going to be fewer people work and if if wages are higher.
You're gonna be able to keep their employees they're gonna do a better job and instead of focusing on adjusting to the minute in terms of scheduling.
If you look at companies that keep their staff around -- are stable hours.
Quick trip great southern convenience chain.
Been nominated one of fortune one -- top companies to work force and -- 1003 it can be done it's a false choice that we've been -- -- -- -- You thank -- mainstream I didn't I didn't convince you -- things -- coming on we appreciate it.
Next on money.
-- refineries in California open in the midst of gas shortages despite reports that they were closed we've got someone saying.
But the gas price spikes in California the last several months.
And bogus I don't know about that we've got all the details on that coming up really interesting.
At the end of the day it's all about money and Thanksgiving.
Okay.
