Sears Holdings just announced the closure of 68 Kmart and 10 Sears stores and minimum wage costs are a prime reason!
“The decision to close stores is a difficult but necessary step” said Sears Holdings CEO Edward Lampert
“Competition from online merchants that don’t have to collect sales taxes was another drag on sales. Higher minimum wage costs also hurt performance”, Lampert said.
The Political Insider reports:
California, New York, and other states are raising the minimum wage, thanks to pressure from President Barack Obama and liberal state politicians.
But those increases hurt companies in serious ways. Now, the Sears Holdings company has announced that 68 Kmart stores and 10 Sears stores will close immediately this summer to cut losses.
This is on top of 50 closings which have already been scheduled, after a disappointing Christmas sales season in the Obama economy.
Entry level jobs at places like Kmart and Sears are supposed to allow young people the opportunity to gain on-the-job experience. After becoming productive members of the work force, they will advance to higher paying jobs.
Thanks to liberals increasing minimum wages, these entry level jobs are being priced out of the market and places that offer them like Kmart and Sears are closing everywhere.
California recently passed a law hiking the minimum wage to $15. Governor Moonbeam admitted openly that the move did not make economic sense:
“Economically, minimum wage may not make sense. But morally, socially, and politically they make every sense…”
Economically, minimum wages may not make sense…Economically, high minimum wage may not make sense…Economically, government controlled minimum wage may not make sense….Hear what you just said Jerry Brown?
Intentionally or not, Jerry Brown just told us something we already know: that a high minimum wage makes bad policy by forcing price increases and pricing low-skilled workers out of the labor market.
A survey of LA County businesses confirms these negative effects, and that doesn’t even begin to touch on the impact for less urban areas, which will have an even harder time complying with $15/hour.
— Forbes (@Forbes) April 6, 2016