Heh. So the liberals got what they wanted.
The company announced Tuesday that it will raise its minimum wage to $15 an hour for all US employees. But tucked away in the announcement was the fact that Amazon will phase out its bonus and stock award programs for its hourly workers. The change was first reported by Bloomberg Wednesday.The company maintains that workers will make more money under the new system. All hourly workers will get a bump in pay, even if they are already making $15 an hour.“The significant increase in hourly cash wages more than compensates for the phase out of incentive pay and RSUs [restricted stock units],” a spokesperson said. “In addition, because it’s no longer incentive-based, the compensation will be more immediate and predictable.”
Surely, the primary reason that Amazon increased its starting wage is because the labor market is tight and the natural economic force of demand requires them to do so. But I’m sure that Bezos, a liberal himself, also felt the pressure from Bernie and the other socialists. Well, they got what they wanted.
But while Amazon hourly employees are getting a raise, they are missing out on one of the most important wealth creators in the history of mankind – ownership. For the employees who received Amazon stock, it’s gone up about 600% in the last 5 years. There’s a lot to be said for taking the cash up front in the form of hourly wages, but it’s no substitute for the wealth creation that ownership gives.