7/8/2015
By Charles Payne, CEO & Principal Analyst

You are going to be paying a lot more for lattes at Starbucks and chicken wraps at Chipotle because socialism and capitalism cannot merge into the same model, even if you call it conscious capitalism.

Despite the fact that Arabica coffee beans have plummeted 45% in the past year, Starbucks needs to increase prices as much as $0.20 on some products to send workers to college and to be nice to the earth. 

Then there is the higher minimum wage sweeping the nation, especially in California where San Francisco just hiked its minimum wage by 14%. Chipotle just hiked its prices by… guess? Try 14%.

We scold Greece and other failed nations for embracing socialism, but this movement of reshaping corporations with its shareholders coming last means that there will be higher prices for customers and fewer jobs.

Howard Schultz is at the top of the conscious capitalism pyramid and he blinked today. However, you’ll pay the price. I think we must debunk the notion this is anything but another way to make the corporate balance sheet part of the public domain.

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Charles Payne
Wall Street Strategies

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