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In February 2015, Walmart announced that it is increasing wages to just over $10 an hour for all employees. This wage is now substantially higher than the federal minimum wage but still below the $15 an hour rate recommended by many labor activist groups. Review the following information on the recent wage changes:

• In Letter to Associates, Walmart CEO Doug McMillon Announces Higher Pay (http://blog.walmart.com/in-letter-to-associates-walmart-ceo-doug-mcmillon-announces-higher-pay)

• What You Should Know About Walmart's Raise (http://www.thenation.com/article/what-you-should-know-about-walmarts-raise/)

• Walmart Lifts Its Wage Floor to $9 an Hour (https://my.snhu.edu/CookieAuth.dll?GetLogon?curl=Z2FAcademicsZ2FLibraryZ2FPagesZ2FEZ5APAuth.aspxZ3FurlZ3Dezp.2aHR0cDovL3NlYXJjaC5wcm9xdWVzdC5jb20vZ5AG9jdmlldy8xNjU2MjQ2NDcxP3BxLW9yaWdzaXRlPXN1bW1vbiZ5AhY2NvdW50aWQ9Mzc4Mw--&reason=0&formdir=5)

In a paper, respond to the following questions:

1. Do you think Walmart raised wages because of supply and demand in the labor market or because of the pressure of labor activist organizations? Explain your reasoning.

2. Do you think Walmart should raise wages to $15/hour to match what labor activists are calling for? Why or why not?

3. Should the government raise the minimum wage and if so, to what level? Please support your answer.

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