Friday, November 23, 2012

17. Don’t shop at Wal-Mart on Friday!



On November 21st, Robert Reich posted an article about how today’s largest private-sector employers pay very small wages to their workers compared to before and the working conditions are also poor. Reich opens by comparing average hourly wages earned by employees who worked for GM 50 years ago with today’s hourly wages earned by Wal-Mart employees. He points out several reasons such as globalization and technological changes but the main reason is the decline of labor unions. “As a result, the typical American worker no longer has the bargaining clout to get a sizeable share of corporate profits” while all of it is divided among a few people only. Reich says that the workers have organized strikes especially on Black Friday and Wal-Mart has been trying to fight against them to avoid he strikes. One solution given by the author was to increase the wages paid to the company’s employees, even though it would cost a large sum of money it is a small percentage compared to its total earning and will help bring thousands out of poverty while also increasing retail sales since the workers would be able to buy more.

The author’s purpose in writing this article was not primarily to tell readers why not to buy at Wal-Mart, but to make them aware of the problems that exist in large companies especially the low wages. Robert Reich uses the title and the example of Wal-Mart to attract the reader’s attention since it is a well known retail corporation. Reich used comparison to show how the wages have decreased drastically and supplies reasons for this decrease. The main strategy used to persuade his readers to agree with his suggested solution was the usage of statistics. They helped show that an increase in wages would help many people and would not have a huge effect on the company’s earnings despite the apparently large number.

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