Sen Sanders Amazon “victory”

Sen Sanders is delighted, many Amazon workers are getting a $4.00 an hour raise. He found many Amazon workers were getting SNAP benefits and introduced legislation to fine companies who paid too low wages.

Salary compression will raise the pay for those already earning $15.00 an hour now that the lowest level job earns that.

But the total story is that many of these workers will now be ineligible for their SNAP and perhaps government health benefits.

In addition, Amazon is eliminating an incentive stock plan that allowed these workers to earn shares of Amazon. Workers preferred cash to the value of stock; very likely a major mistake in the long run.

Now a couple working at the lowest paying job at Amazon will earn more that the median family income in the US. Do you see consequences on the horizon?

In short order those cheering workers will realize they gained less than their euphoria indicates. They are treading water. Let’s hope many don’t suffer the fate of increased automation to offset the higher wage costs.

The key to a better future is not $15 an hour, but getting a better, higher skilled job.


  1. You see the $15 /hr consequences in some stores and TV commercials now. Fast food commercials showing happy people ordering from touch screen kiosk or their phones. Arriving at a pizza shop and having to type in a code to get your pizza. One pizza chain is testing a autonomous delivery vehicle that you have to go out to the curb when it arrives, put in a code to get your pizza. I am sure that the tech generation loves this stuff at the cost of their own “first jobs”. More and more stores have self-checkout lanes that never seen to process my orders without getting somebody to override the machine to properly scan everything. There is going to be no more human interaction which might be the only safe interaction if you are a male.

    Welcome to the future.

    Either way, I am not willing to stand in the rain at the curb to get my pizza.


      1. I also have to wonder if that fact that US unemployment is at a 50 year low had anything to do with the $15/hr? Maybe market forces and marketing of what seems like offering $15 / yr had more to do with the raise then pressure from the $15 / hr movement.


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