Wal-Mart is the epicenter of my hometown in Wyoming. The checkout lines at Rock Springs’ Wal-Mart are always long and business always seems to be booming. In fact, the store recently completed a major remodel. The renovation added a liquor store in the back, a talking point during slow news days. But Wal-Mart’s oversized presence is not limited to small-town Wyoming.
President Barack Obama’s recent increase in minimum wage applies only to government employees. As passage of similar reform in Congress that would extend the $10.10 wage to all workers seems increasingly unlikely, the duty to initiate progress now falls on private corporations. Clothing retailer Gap Inc. is leading the charge, having announced that it will raise minimum hourly pay to $10 by next year. Progress, sure, but Gap’s action is a pebble compared to the mountain Wal-Mart wields.
The corporation is more than a retail giant — its employees amount to almost 10 percent of retail sector jobs. Wal-Mart’s 1.4 million U.S. employees are nearly three times the population of Wyoming. In 2012, the conglomerate’s revenue was larger than Austria’s GDP. It is impossible to argue with Wal-Mart’s significance.
According to a study from the University of California Berkeley’s Center for Labor Research and Education, a boost in minimum wage for all of Wal-Mart’s employees would cost $200 million per year, or less than 1 percent of its total spending — a drop in Wal-Mart’s enormous bucket. Once Wal-Mart raises wages, its American employees will finally be able to afford to become consumers.
Furthermore, in a place like Rock Springs, where word-of-mouth has more circulation than the local newspaper, a $10.10 minimum wage would bode well for Wal-Mart’s public perception. If Wal-Mart chooses to increase its hourly pay, it will be lauded for its generosity, even though the passage of the measure is overdue. Public perception will improve, regardless of timeliness. A smart decision delayed by greediness is a smart decision nonetheless.
Rock Springs is dependent on Wal-Mart. The town’s stores are characterized by the items they do not have, so the amenities Wal-Mart provides are essential to the functioning of the town’s small economy. Wal-Mart is important to the culture of Wyoming and, if its position atop the Fortune 500 is any indication, the culture of the United States as well. The company must increase its minimum hourly wages, which would help to maintain the president’s momentum on battling income inequality and compensate for Congress’ stagnation. Wal-Mart has the size and revenue to absorb the wage increase without negative consequence and to ultimately alter the landscape for American workers. So goes Wal-Mart, so goes the retail sector.
Omar Etman is a deputy opinion editor. Omar’s Oration is published every Tuesday. Email him at [email protected].