Myth 9: Raising retail worker salaries would get passed on to - TopicsExpress

Myth 9: Raising retail worker salaries would get passed on to consumers,resulting in much higher prices Reality: Studies show that higher wages do not necessarily translate into significant price increases. In fact, one study (pdf) found that if Walmart raised wages to $12 an hour for associates, and passed 100% of that onto consumers, prices would increase by only $0.46 per shopping trip, or $12.49 per year, for the average shopper. But Walmart could also cover the wage increases in other ways, such as a cut to its CEO salary, now at almost $21m a year. The same is true for other large retailers, who could easily raise wages with little impact on prices (pdf).

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