1. Lets talk about Wells Fargo. Today, they announced they would raise their minimum wage to $15.
Their current minimum wage is $13.50 to $17, depending on region and experience. So many entry level employees already make more than $15.
Their current minimum wage is $13.50 to $17, depending on region and experience. So many entry level employees already make more than $15.
2. But let's assume, for the sake of argument, that ALL 25,000 entry level employees are making $13.50 and getting a raise to $15.
3. That minimum wage increase would cost $80 million a year.
Meanwhile, Goldman estimates that the corporate tax cut is worth $3.7 BILLION next year
That means Wells Fargo is spending 2% (!) of their tax windfall on increased wages
Meanwhile, Goldman estimates that the corporate tax cut is worth $3.7 BILLION next year
That means Wells Fargo is spending 2% (!) of their tax windfall on increased wages
4. I don't think we should diminish that getting a raise is helpful to people. But this announcement by Wells Fargo is pretty convincing evidence that this tax windfall will not, in any substantial way, be spent on wages.
This is basically an $80 million marketing expense.
This is basically an $80 million marketing expense.
