Fracking in Williston, North Dakota, drives unemployment rate to less than 1%, so Wal-Mart offers $17.40 an hour

A Wal-Mart in Williston, North Dakota is offering starting salaries of $17.40 per hour.

The reason that this particular Wal-Mart is offering $17.40 an hour has nothing to do with unions, social justice, compassion, or any other such thing.

Instead, it’s simple supply and demand.

In particular, the article says that fracking has made it possible to access oil which had previously been unobtainable. This has driven the unemployment rate to less than 1% in the city where this Wal-Mart is located.

This presents an interesting situation for anyone who favors higher wages while simultaneously opposing fracking, i.e, a large percentage of people on the political left. Tradeoffs are a common part of life, and I am interested in hearing what other people think of this situation.

The Daily Signal reports:

Why One Walmart in North Dakota Is Paying $17.40 an Hour

A Walmart store in Williston, N.D., is offering to pay entry-level workers as much as $17.40 per hour…

… the historic oil boom in North Dakota has provided real, sustained growth in wages and lowered unemployment in North Dakota to 2.6 percent—the lowest statewide rate in the nation—and to less than 1 percent in Williston, which is near the oil fields in the western part of the state.

Those jobs are safe for the foreseeable future, too. Last year, a study conducted by the United States Geological Service estimated conservatively that 7.4 billion barrels of recoverable oil sit beneath North Dakota. Scientists have long known about these oil reserves, but two miles of solid rock precluded development. Recent advances in hydraulic fracturing and smart drilling technology have made production possible and triggered the present economic boom.

 

wal-mart $17.40 an hour

June 11, 2014. Tags: , , , , , , , , , , , , , , , , . Economics, Environmentalism, Politics, Technology. 2 comments.