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“The problem with Socialism is eventually you run out of other people’s money” — Margaret Thatcher.
Again, why would you use the 20th century’s dumbest free-market proponent to prop up your arguments?
There are a couple of problems with this.
1. McDonald’s has a median starting pay of $9.00/hr
2. As regulation costs (ACA, EPA, FDA) raise expenses by companies, they have to cut them elsewhere and raise prices to maintain equilibrium. Raising the minimum wage would catastrophically upset that equilibrium to the point that most workers would be laid off.
3. Food prices would rise even after the layoffs.
4. Industry prices would rise, driving consumer prices up, so now you have workers out of work and the cost of living has skyrocketed.
Maybe we should reduce the cost of living.
Socialists don’t think things through. It’s why Socialism always fails.
thememesfactory.com/wp-content/uploads/2013/12/580741_1573657892682109_1829187583_n1.jpg
Use these machines, prove they work, and your job is next.
Why would food prices or industry prices rise if there were layoffs to compensate for the rise in wages?
There’s no doubt that the cost of McDonald’s food would increase if they had to pay more, but that’s the only real guarantee. If we as a society think that those people on the other side of the counter should be making a living wage, that is in fact a price we would have to pay. Given that fast food jobs are quickly moving from summer and part-time jobs for teenagers and college students towards the full time jobs for working adults, maybe we want to make that choice. The alternative is an eternal class of working poor and the rest of us picking up the difference on social programs through our tax dollars. It’s an interesting decision we should be having as a collective social discussion. Instead we do this. Yay us.
In and Out pays there employees very well and gives benefits. What the employees protesting don’t get is that they will be weeded out by better employees because it is decent pay and then they will finally get my big mac order right. Also as for all the stupid bs about a outrageous price hike for food….it would be 17cents per burger. The USA won’t collapse because MCD employees get $15/hr.
Where are you getting the 17 cents per burger stat?
probably (annual units sold)/(annual employee salary) … … …but even the 0.17 doesn’t sound right.
In a capitalist society, the price of an item is not set by the cost of production for an item. It is set by the maximum price that a company can charge to the customer, and get away with.
The competition factors in the equation of setting prices: you charge what you can get away with in light of what the competition charges for a similar product, trying to strike a balance between profit and preserving market share.
Thing is, when it comes to McDonald’s, we are not talking about a young start-up operating at a deficit in the first few years in order to lure in customers. And we are not talking about an altruistic organization that is barely breaking even in order to make its meals as affordable as possible.
McDonald’s is a giant corporation (arguably the most recognized brand in the world), and a rapacious organization which refuses to pay a living wage in the name of increasing an already huge profit margin.
Sure, McDonald’s may claim that they will have no choice but to pass the increased labor costs onto the customers (insert apocalyptic Big Mac price scenarios here), but doing so would hurt sales and give the competition a leg up.
McDonald’s absolutely can afford to pay a living wage to its employees while maintaining current operations. They would just rather not.
Of course, free-market morons are perfectly fine with denying living wages in the name of making huge profit margins a little more huge. Profit is fine, profit is great, but is it so important that it should come at the expense of being fucking human? Should it come at the cost of creating a slave-wage class?
Never mind that not one of those morons addresses the benefit of having more people with money in their pockets… people who will be able to pay their bills for a change, and have some money leftover… something that is a boon capitalist society. Nope, instead they’ll scream “Socialist plot to redistribute wealth!” and refuse to acknowledge that raising the minimum wage means more money moving throughout the system.
Most McDonalds are owned by franchisees who are small time entrepeneurs. The people working the counter are not employed by or paid by the McDonalds Corporation.
McDonalds food is poison anyway. I don’t care how much they pay their people – I’m not eating there.
If you don’t like the prices they charge or what the pay their employees, then don’t buy what they’re selling. Nobody is forcing you to line the CEO’s pockets with your money.
As my economics professor once said, you vote with your money. The ones that you vote for tend to survive longer.
Around 5% of the US labor force makes minimum wage. Of those about half are teenagers who live in households with average or above average household income. That leaves around 2.5% of the labor force or about 4 million people who are presumably trying to support themselves on a minimum wage job. Studies indicate, they may be accurate they may not, that raising the minimum wage to $10.10 will cause the lost of between 400,000 and 1,000,000 minimum wage jobs. On top of that it is reasonable to expect that more job seekers who will not accept a job at $7.25/hour would accept a job at $10.10 an hour thereby increasing competition for those fewer jobs. Those who want to “help” will reduce the number of jobs by 10%-25% and increase the number of applicants for those jobs thereby making it much, much harder for those with minimal experience/skills/education to find any job ever. This is compassionate?
^^^ This. Incoming downvotes from butthurt Social Police.
The myth of “minimum wage earners” mostly being made up of teenagers who live with theirs parents continues to persist, but is not based on fact. 88% of them are older than 20, and the low-figure average age is 31 (some estimates going as far as 35). 30% of those workers have children to support.
I use quotations when saying “minimum wage earners” since the data includes those who make minimum wage (which is not a living wage) and those who make less than the minimum, and are even worse off.
I’m glad you preface your dire job loss predictions with the very important words “Studies indicate, they may be accurate they may not” since the studies I’ve seen point to limited or no job loss. The majority of the impact falls on the side of reduced new hires, at least until the market adjusts to the new reality.
The scenario you present also fails to take into account the upside of a wage raise: increased efficiency and reduced employee turnover. And let’s not forget that reduced compensation means more people having to resort to welfare and/or public assistance programs to survive.
Ironically, there is a very real, very public cost to opposing a living wage, and you Sir are footing the bill — effectively paying to keep a labor force healthy enough to be exploited by corporations (and I’m sure they are very grateful).
Addressing your early reply to my post: while the majority of McDonald’s restaurants are indeed franchises, the parent company manages both the image and the brand with all of its corporate might. Sales, inventory and labor costs are all closely tracked. The agreements one must sign in order to become a franchise owner also regiment nearly all aspects of managing the restaurant.
The franchise manager may be the one who hire and signs the paychecks, but don’t think for a moment that the parent corporation is not in complete control.
Where are you getting those numbers from?
His ass.