Wal-Mart to Increase Starting Wages to $11

Walmart announced an increase in starting wages to $11/hour and bonuses due to tax reform. This move is part of a broader trend where companies are adjusting wages in response to a competitive labor market and low unemployment rates. The discussion highlights how firms like Walmart and Target are competing for employees, and the potential impact on consumer prices and productivity. The transcript explores the dynamics of wage increases, tax reform, and their implications for businesses and employees.

What factors might influence how firms respond to the labor market according to the text?

In what ways could higher wages impact productivity and pricing strategies for Walmart?