Posted on 02/18/2017 8:22:47 PM PST by Tolerance Sucks Rocks
For Americans hitting the drive-thru at their local McDonald’s, a $15-an-hour minimum wage could hit them in their wallets.
According to a January report released by James Sherk, a former research fellow in labor economics at The Heritage Foundation, fast-food prices would rise by 38 percent under a $15-an-hour minimum wage and cause a 36 percent drop in employment.
Sherk’s research comes after several cities and states across the country voted to raise their minimum wages, with increases typically phased in over the next five years.
Additionally, several Democrats have advocated a $15-an-hour minimum wage at the federal level, as does Sen. Bernie Sanders, I-Vt., who spoke about the need for an increase to the federal minimum wage while campaigning for president last year.
In his paper, Sherk said that raising the minimum wage would lead to higher labor costs for fast-food restaurants. Restaurant owners operating on already slim profit margins would then need to raise their prices.
Those higher menu prices would have a direct impact on customers who frequent fast-food establishments.
Here’s how prices at some of the most popular fast-food restaurants would change with a $15-an-hour minimum wage.
(Excerpt) Read more at dailysignal.com ...
The people who say this dont eat at these kinds of places. They know it wont affect them.
Raising prices to accommodate government mandated minimum wages has easily understood consequences. The Law of Demand...fundamental to any basic course in economics... says that if prices rise the market will demand a smaller quantity or seek cheaper substitutes. Higher prices for your fast food will mean lower sales or give an advantage to competitors who offer cheaper prices because they have automated and replaced jobs with capital. $15 wages for burger flippers will mean a quick shift to highly automated businesses where cashiers are replaced with kiosks and the cooking and assembly of burgers is automated. The result is a lot of unemployed fast food workers. I would expect liberal luddites to respond by by calling for banning automation.
$15 is one of those ruses to cause a fight. The maniacs know that $15 isn't doable....what they want is the issue, not the solution.
precisely -
automation will reduce fast food prices and increase quality and eliminate 2/3 of $15/hr jobs
And the people getting that “living wage” have to buy ####, too. #### which now costs more than the increase in income covers. So, they’re in the same boat as they were before. But, at least it *looks* like they’re doing better.
Relax, everyone. Of course, there should be $0.00 minimum wage. But since a Big Mac cost $.77 to make, all in, and store wages are 25% of that cost, the base against which % increase is applied is all of $0.17. Maybe a $0.04 increase in costs?
Looks like fast food will soon be off the menu. AZ voters, being not so bright, passed an increase in the minimum wage. All it will do is cause higher unemployment and drive some places out of business.
For those who used to buy fast food as a splurge will now simply not buy it at all.
Yes, but if they go to robotics, my food won’t be spit on, or otherwise fouled. There’s an upside to everything
So the $1 menu is now the $1.38 menu.
And since you are used to pouring you own Coke these days, you will have no problem and enjoy our front counter order kiosk that greats you with an electronic smile! or our voice activated drive-thru order system. Please order by number to ensure order correctness and that eliminated 36% of the staff
Aldi came from Germany, but I didn’t know Trader Joe’s did. We don’t have any.TJ’s.
Inspirational, but with inflation, it may not be possible anymore. But, where there’s a will.........
Liberal politicians don’t care. The lies they sold were transparent to most conservatives, but the progressive crowd had Common Core mathematics, so....
And I used to fuss about a Whopper costing $2.80 back in 1986.... LOL
I can’t remember if it was just the sandwich or the combo. I just cook my own burgers on the grill nowadays.
Yep we have some lib acquaintances that once sanctimoniously announced they were proud to pay their taxes - then we found out they cheated like hell by using a rental property as a way to write off work done on their primary residence....
Most articles on the topic only discuss the effect of increasing minimum wage for the minimum wage employee will have on the cost to the consumer.
That is not the end of it. All the employees who worked to increase their value to their employers making more than minimum wage will expect an increase in pay.
About 500 miles north of the border we found a McDonalds. We were quite happy, I could just taste the Big Mac as we noticed the sign in the distance. We got there the place looked odd. The McDonald arch was not the right shape, neither was the building. No McDonalds uniforms on employees, no familiar menu. Didn’t smell too good either. We left without eating.
Inflation calculator
Bill Gates would want more for the Robots, for taxes! The taxes could then be used to pay the, laid off, workers! ;^}
My guess a 30% increase the price of a Big Mac will not hurt sales one bit. Also at $15/hr the employee is no longer eligible for govt. handouts so. My guess it is a wash.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.