Monday, July 11, 2016

#Socialism Cheers Reduced Hours and Rising Unemployment

News
While socialism cheers higher wages for workers at chains such as Starbucks, it generally fails to recognize that companies must raise prices and cut costs (reduce the hours worked of those receiving the pay raises) to maintain profit margins necessary to satisfy the private sector that funds businesses. If the principles of capitalism are not longer acceptable in the United States, Starbucks and its investors might be better served by running its business into the ground (while buy risky derivatives!), the General Motors strategy, then ask for public funds because its "too big or important to fail". The sane ones are left scratching their heads and wondering who's in charge of this dog and pony show.

Headline: Starbucks to increase wages for U.S. workers in October

July 11 (Reuters) - Starbucks Corp said on Monday it will raise the wages of all employees in its U.S. stores by 5-15 percent this year through an increase in base pay and stock awards.

The coffee chain will increase the base pay for all U.S. workers and store managers by at least 5 percent in October, Chief Executive Howard Schultz said in a letter to employees.


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