XtremeJibber2001 wrote:madhatter wrote:WalMart Raises Starting Wage To $11, Provides One-Time Bonus Following Trump Tax Reform
I am pro-tax cuts, pro small gov't, etc. However, I struggle with how the corporation are using now excess capital. Most, at least so far, appear to be returning crumbs to their employees and massive stock buybacks to their investors.
I'd be curious what results in more improvements for the economy .... the $1,000 one time bonus, $15,000 one time bonus (e.g., in lieu of Walmart's Q4 $20B stock buyback), or a stock buyback.
We didn't finish our prior discussion - but to summarize I think you are looking in the wrong place.
1) Is it really the majority of companies doing this, or just a few in the news?
2) What does it say when any company pays labor (essentially a commodity) a higher than market rate?
3) What does it say when companies place capital in places other than development, research, operations, or expansion?
I think what is good for the economy is
The number of people as a ratio to the total population that are in the work force. This is the most basic measurement of productivity.
The number of people as a ratio to the total population that are willing to work harder than 40 hours.
The number of people that are working hard that constantly think about innovation, making something better somehow,
and are motivated to take action.
The number of people that build things vs consume things. IE it's better to build houses and highways than make candy bars.
Balanced trade, balanced budgets, and balanced tax rates when compared to our competition*. Or (gasp) better than that; tipped in our favor.
A tax system, education system, and media outlook that recognizes the importance, encourages and incentivizes the above.
So apply that to my questions.
For instance, I think paying labor higher than market wages is either a move to improve your labor force by attracting the best of the best, or in the case of a one time event that does not improve your labor force it is a PR move, just like cow power to power K1, or AT&T's announced $1,000 bonus.
I think there is a lot of looking in the wrong places when it comes to describing or improving the economy. Like blaming the wealthy.
*Competition can consist of other states, other countries,
or simply choosing not to work or take risks because the tax/regulatory burden is too high.