Last Friday, a number of protesters demanded an increase in the minimum wage outside Walmart stores. In July, the massive retailer dropped plans to build three stores in Washington, D.C. after the passage of a bill requiring a living wage of $12.50. Wal-Mart claimed a wage hike would drive up the prices of its products. However, the company reported in November a decrease in sales for the third consecutive quarter while still maintaining a median wage of $8.81 an hour. The multibillion dollar corporation fails to realize that a salary increase for its low-wage workers would be extremely profitable — not only for the company but for the American economy.

Wal-Mart is the largest private employer in the world with 2.2 million employees. The economic benefits of a wage increases are apparent — the more money workers make, the more they spend, the more jobs created. Since Wal-Mart is the largest employer in America, it serves as a model for millions of other businesses employing low-wage workers. If Wal-Mart keeps its wages low, other employers will do the same. If Wal-Mart increased wages, the effects would be far reaching, dramatically widening the amount of disposable income for millions of Americans. More spending means a stronger economy.

Moreover, Wal-Mart employees receive, while small, an employee discount — an incentive to shop at Wal-Mart. If employee wages were raised, that would mean over 2 million people with more money to spend — at Wal-Mart. This means revenue back in Wal-Mart’s pocket. A wage increase would also lead to a decrease in employee turnover, which in turn decreases training costs and an increase in worker productivity.

Aside from an economic demand to raise the minimum wage, there is also a strong ethical case to be made. The company is making unprecedented profits of over $400 billion on the backs of its workers, but rewards them with barely livable wages. The Walton family, the major stockholders of the company, have a net worth of $93 billion. Meanwhile, an annual salary for an average employee at Wal-Mart is $15,576, which is significantly below the federal poverty line for a family of four. The refusal to raise employee wages is not only evidence of poor economic policy but also unabashed greed. A wage hike would not mean a drastic hike in prices or a decrease in Wal-Mart sales. It would mean less money for billionaires.

A version of this article appeared in the Tuesday, Dec. 2 print edition. Email the WSN Editorial Board at [email protected].