Wal-Mart Accused of Violating Campaign-Finance Laws; Economists Offer Wage Increase Ideas; Treasury Announces Rules to Reduce Tax Inversion Benefits

Tuesday, September 23, 2014

Companies have worked very hard to keep costs low and that includes their labor expenses, which is why wages continue to remain stagnated and productivity continues to rise. The minimum wage hasn't increased in years, allowing businesses to get away with paying low wages, keeping people in poverty. The financial times interviewed economists from across the political spectrum on their ideas to jump-start wage increases.    
Economists from across the political spectrum offer their ideas to jump-start wage growth - Financial Times

President Obama is calling for wage increases, but he is also calling tax inversions unpatriotic. JPMorgan Chase CEO Jamie Dimon finds inversions beneficial and defended them by saying companies want to get the lowest prices much like  people shopping at Wal-Mart want to get the best deals. Wal-Mart shoppers aren't the greatest comparison, considering companies save billions through inversions by dodging taxes through buying companies in other countries and moving their headquarters.
Treasury Announces Rules To Help Curb Benefits Of Inversions - Buzzfeed

Speaking of Wal-Mart, they don't just pay their employees low wages, but they might also be pressuring them to donate to their Political Action Committee (PAC). Wal-Mart is accused of violating campaign-finance laws for encouraging their employees to donate to their PAC and matching the donation to the company charity. The match automatically goes to the Associates in Critical Need Trust (ACNT), a charity started in 2001 by the company to help Wal-Mart workers facing financial distress.  
Groups Accuse Wal-Mart Violating Campaign-Finance Laws - Bloomberg

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