Jeff Bezos relatively recently became the most wealthy person on planet Earth. Once held by the likes of Microsoft’s very own Bill Gates, Bezos became the richest person in the world just three months ago, in mid-July 2018. Estimates clock his net worth at upwards of $166 billion as of October 1, 2018.
His wealth isn’t going anywhere unless the stock price of Amazon crashes. However, with news of the fact that Amazon just yesterday – there will be talks across all news media outlets for at least one full week to come – raised its minimum wage to $15 per hour spreading across the world, the share price of Amazon is likely to rise upwards of five percentage points today.
Depending on what media sources you follow, you’ll find mixed reactions to the move by Bezos. Even more important is the recently-announced intention of Jeff Bezos to bring a minimum wage of $15 to all workers across all 50 states.
Right-leaning news media outlets like Fox News are likely to be staunchly against the potential economic repercussions of Jeff Bezos making public his intention to have the entire United States’ minimum wage raise to a low of $15 per hour of labor worked. Conversely, left-leaning circles will likely be in favor of the powerful Mr. Bezos’ intentions to bring $15 per hour to all employees across the nation.
What does the wage hike mean for Amazon?
For countless months upon months, accusations of Amazon holding its employees accountable to meet unattainable target performance goals have spread across the globe. Many thousands of Amazon employees had recently made public their experiences of not getting paid enough at Amazon despite being forced to trudge through dismal working conditions and having to toil away for long hours without ample breaks or sufficient compensation.
Put simply, Amazon will totally be able to fork over $15 per labor hour to its tens of thousands of employees. It’s not likely that many costs – if any costs at all – will be passed on to consumers because Amazon has worked with such huge profit margins in recent times that the company can readily afford the substantial wage hike.
You’ll also likely hear the phrase raising rivals’ costs thrown around in the news, which essentially refers to cutting small businesses with tight margins out of business.