Increasing The Minimum Wage: Did You Know This?

[auditor0007]

I had never heard this before, but apparently this is not the first study to make such findings. This really should make people rethink how they feel about the minimum wage.

Doubling McDonald's Salaries Would Cause Your Big Mac To Cost Just 68¢ More: Study [UPDATE]

McDonald's can afford to pay its workers a living wage without sacrificing any of its low menu prices, according to a new study provided to The Huffington Post by a University of Kansas student.

Doubling the salaries and benefits of all McDonald's employees -- from workers earning the federal minimum wage of $7.25 per hour to CEO Donald Thompson, whose 2012 compensation totaled $8.75 million -- would cause the price of a Big Mac to increase just 68 cents, from $3.99 to $4.67, Arnobio Morelix told HuffPost. In addition, every item on the Dollar Menu would go up by 17 cents.

McDonald's declined a request to comment from The Huffington Post.

This research comes as fast-food workers across the country strike for a $15 per hour minimum wage. Workers are also protesting for the right to unionize without fear of retaliation. Protesters are holding strikes in seven cities over a four-day period, according to Salon.

Morelix looked at McDonald's 2012 annual report and discovered that only 17.1 percent of the fast-food giant's revenue goes toward salaries and benefits. In other words, for every dollar McDonald's earns, a little more than 17 cents goes toward the income and benefits of its more than 500,000 U.S. employees. Thus, if McDonald's executives wanted to double the salaries of its employees and keep profits and other expenses the same, it would need to increase prices by just 17 cents per dollar, according to Morelix.

Doubling McDonald's Salaries Would Cause Your Big Mac To Cost Just 68¢ More: Study [UPDATE]

 

[Clementine]

Oh, so a study by a student is all that's needed now.

Why do people take jobs and agree to the pay, then turn around and demand more? If they had issues with minimum wage, they should have made themselves qualified for higher pay. One guy started there making fried and worked his way up to management because he had the necessary skills. If all you are qualified to do is unskilled labor, it's up to you to better yourself, not expect government to increase your wages by force.

Teens starting in the job market hardly need a living wage since they still live with their parents.

 

[DiamondDave]

I had never heard this before, but apparently this is not the first study to make such findings. This really should make people rethink how they feel about the minimum wage.

Doubling McDonald's Salaries Would Cause Your Big Mac To Cost Just 68¢ More: Study [UPDATE]

McDonald's can afford to pay its workers a living wage without sacrificing any of its low menu prices, according to a new study provided to The Huffington Post by a University of Kansas student.

Doubling the salaries and benefits of all McDonald's employees -- from workers earning the federal minimum wage of $7.25 per hour to CEO Donald Thompson, whose 2012 compensation totaled $8.75 million -- would cause the price of a Big Mac to increase just 68 cents, from $3.99 to $4.67, Arnobio Morelix told HuffPost. In addition, every item on the Dollar Menu would go up by 17 cents.

McDonald's declined a request to comment from The Huffington Post.

This research comes as fast-food workers across the country strike for a $15 per hour minimum wage. Workers are also protesting for the right to unionize without fear of retaliation. Protesters are holding strikes in seven cities over a four-day period, according to Salon.

Morelix looked at McDonald's 2012 annual report and discovered that only 17.1 percent of the fast-food giant's revenue goes toward salaries and benefits. In other words, for every dollar McDonald's earns, a little more than 17 cents goes toward the income and benefits of its more than 500,000 U.S. employees. Thus, if McDonald's executives wanted to double the salaries of its employees and keep profits and other expenses the same, it would need to increase prices by just 17 cents per dollar, according to Morelix.

Doubling McDonald's Salaries Would Cause Your Big Mac To Cost Just 68¢ More: Study [UPDATE]

Except they don't count on things like increasing other salaries.. for assistant managers do not want to make the same as the unskilled people they are managing.. and that goes up the line... and not just in McD's, but in every field and in every company....lest we not forget the increased wages at paper suppliers, beef suppliers, electric suppliers, transportation, etc... the cost of what it takes to provide the business with what it needs goes up dramatically with a large increase in minimum wage

You people cannot see the forest for the trees

 

[Meathead]

Maybe those who want fast food employees to get paid better can make a 20% donation at the counter.

 

[KevinWestern]

I had never heard this before, but apparently this is not the first study to make such findings. This really should make people rethink how they feel about the minimum wage.

Doubling McDonald's Salaries Would Cause Your Big Mac To Cost Just 68¢ More: Study [UPDATE]

McDonald's can afford to pay its workers a living wage without sacrificing any of its low menu prices, according to a new study provided to The Huffington Post by a University of Kansas student.

Doubling the salaries and benefits of all McDonald's employees -- from workers earning the federal minimum wage of $7.25 per hour to CEO Donald Thompson, whose 2012 compensation totaled $8.75 million -- would cause the price of a Big Mac to increase just 68 cents, from $3.99 to $4.67, Arnobio Morelix told HuffPost. In addition, every item on the Dollar Menu would go up by 17 cents.

McDonald's declined a request to comment from The Huffington Post.

This research comes as fast-food workers across the country strike for a $15 per hour minimum wage. Workers are also protesting for the right to unionize without fear of retaliation. Protesters are holding strikes in seven cities over a four-day period, according to Salon.

Morelix looked at McDonald's 2012 annual report and discovered that only 17.1 percent of the fast-food giant's revenue goes toward salaries and benefits. In other words, for every dollar McDonald's earns, a little more than 17 cents goes toward the income and benefits of its more than 500,000 U.S. employees. Thus, if McDonald's executives wanted to double the salaries of its employees and keep profits and other expenses the same, it would need to increase prices by just 17 cents per dollar, according to Morelix.

Doubling McDonald's Salaries Would Cause Your Big Mac To Cost Just 68¢ More: Study [UPDATE]

Interesting, indeed, but I worry that the approach might be simplifying things a bit too much, and not taking all factors into play.

Let’s say we take all workers in America and give them a 50% raise. Naturally, prices for goods and services will need to go up as well and at the end of the day the worker may be making more money but not coming out on top because everything they need to purchase to survive and function has also gone up as well!

However, I’m sure McDonald’s can probably stand to pay its workers a bit more…

.

 

[auditor0007]

I had never heard this before, but apparently this is not the first study to make such findings. This really should make people rethink how they feel about the minimum wage.

Doubling McDonald's Salaries Would Cause Your Big Mac To Cost Just 68¢ More: Study [UPDATE]

McDonald's can afford to pay its workers a living wage without sacrificing any of its low menu prices, according to a new study provided to The Huffington Post by a University of Kansas student.

Doubling the salaries and benefits of all McDonald's employees -- from workers earning the federal minimum wage of $7.25 per hour to CEO Donald Thompson, whose 2012 compensation totaled $8.75 million -- would cause the price of a Big Mac to increase just 68 cents, from $3.99 to $4.67, Arnobio Morelix told HuffPost. In addition, every item on the Dollar Menu would go up by 17 cents.

McDonald's declined a request to comment from The Huffington Post.

This research comes as fast-food workers across the country strike for a $15 per hour minimum wage. Workers are also protesting for the right to unionize without fear of retaliation. Protesters are holding strikes in seven cities over a four-day period, according to Salon.

Morelix looked at McDonald's 2012 annual report and discovered that only 17.1 percent of the fast-food giant's revenue goes toward salaries and benefits. In other words, for every dollar McDonald's earns, a little more than 17 cents goes toward the income and benefits of its more than 500,000 U.S. employees. Thus, if McDonald's executives wanted to double the salaries of its employees and keep profits and other expenses the same, it would need to increase prices by just 17 cents per dollar, according to Morelix.

Doubling McDonald's Salaries Would Cause Your Big Mac To Cost Just 68¢ More: Study [UPDATE]

Except they don't count on things like increasing other salaries.. for assistant managers do not want to make the same as the unskilled people they are managing.. and that goes up the line... and not just in McD's, but in every field and in every company....lest we not forget the increased wages at paper suppliers, beef suppliers, electric suppliers, transportation, etc... the cost of what it takes to provide the business with what it needs goes up dramatically with a large increase in minimum wage

You people cannot see the forest for the trees

Actually, I have no problem seeing the forest for the trees. The research is sound and it only confirms other studies that have said the same thing. That does not mean that it wouldn't come with any costs or that we should go that far with it. What it does suggest is that raising the minimum wage somewhat would't be the end of the world as cons like you continue to spout day in and day out. You guys think the minimum wage should be $3 per hour and everyone should be happy with that. Sorry if I do not agree with your ridiculous conclusions.

 

[ClosedCaption]

Oh, so a study by a student is all that's needed now.

Sarcasm used for lack of rebuttal

Why do people take jobs and agree to the pay, then turn around and demand more?

Deflection used for lack of rebuttal

If they had issues with minimum wage, they should have made themselves qualified for higher pay. One guy started there making fried and worked his way up to management because he had the necessary skills.

Deflection used for lack of rebuttal / personal anecdotal story bs

If all you are qualified to do is unskilled labor, it's up to you to better yourself, not expect government to increase your wages by force.

Teens starting in the job market hardly need a living wage since they still live with their parents.

More deflection for lack of rebuttal

 

[g5000]

I'm with Clementine on being skeptical of a college student's "study".

Nevertheless, even if we stipulate that we only need to raise the price of a Big Mac by 68 cents, there are still problems the kid ignored.

First, no one buys just a Big Mac. They buy fries and a drink, and each of those would also have to rise commensurately in price. So your Big Mac meal would be a buck and a half more expensive.

If you are a low income family trying to buy dinner for a family of four, that's an extra six bucks. You just got priced out of McDonald's.

Higher prices means falling sales. Simple fact.

 

[oldfart]

Doubling the salaries and benefits of all McDonald's employees -- from workers earning the federal minimum wage of $7.25 per hour to CEO Donald Thompson, whose 2012 compensation totaled $8.75 million -- would cause the price of a Big Mac to increase just 68 cents, from $3.99 to $4.67, Arnobio Morelix told HuffPost. In addition, every item on the Dollar Menu would go up by 17 cents....

Morelix looked at McDonald's 2012 annual report and discovered that only 17.1 percent of the fast-food giant's revenue goes toward salaries and benefits.

Except they don't count on things like increasing other salaries.. for assistant managers do not want to make the same as the unskilled people they are managing.. and that goes up the line... and not just in McD's, but in every field and in every company....lest we not forget the increased wages at paper suppliers, beef suppliers, electric suppliers, transportation, etc... the cost of what it takes to provide the business with what it needs goes up dramatically with a large increase in minimum wage

You people cannot see the forest for the trees

First, being a student doesn't make Morelix wrong.

Second, his primitive methodology DOES include doubling compensation for all workers including the CEO's $8.75 million, which it seems you missed in the OP.

Third, I fail to see the logic in extending the argument to workers of supplier firms. If their wages were to double, then the prices of their goods and services would increase by a percentage of the increase in labor costs. A doubling in the wages of paper mill workers does not mean a doubling of the cost of paper napkins unless somehow the wage increase causes trees to double in cost. Being an expert in trees, I thought you would know that!

 

[KevinWestern]

Actually, I have no problem seeing the forest for the trees. The research is sound and it only confirms other studies that have said the same thing. That does not mean that it wouldn't come with any costs or that we should go that far with it. What it does suggest is that raising the minimum wage somewhat would't be the end of the world as cons like you continue to spout day in and day out. You guys think the minimum wage should be $3 per hour and everyone should be happy with that. Sorry if I do not agree with your ridiculous conclusions.

Just to play devil's advocate, $0.68 isn’t much but likely will lead to a drop in sales (visually a “$3” burger appears much more affordable than a “$4” burger). I work in a similar industry and know that even a $0.25 reduction/increase in price can make a large difference in the amount of sales one rakes in.

So, let’s say we increase the price, sales drop (revenue decrease), and then we are forced to increase the price furthermore to make up for that drop in revenue. Isn’t there a potential to sort of spiral out of control?

.

 

[PredFan]

Working at McDonalds isn't supposed to be a career. If that's the best you can achieve in life then you deserve to be poor.

 

[KevinWestern]

Working at McDonalds isn't supposed to be a career. If that's the best you can achieve in life then you deserve to be poor.

Well I guess folks with metal disabilities and cognitive problems who choose to work at McDonald's because of the relative simplicity of the work deserve to be poor?

Little bit harsh of a statement, as I wouldn't necessarily say those people DESERVE to be poor; I would rather say that they are simply poor due to unfortunate circumstances..

.

 

[PredFan]

Working at McDonalds isn't supposed to be a career. If that's the best you can achieve in life then you deserve to be poor.

Well I guess folks with metal disabilities and cognitive problems who choose to work at McDonald's because of the relative simplicity of the work deserve to be poor.

Kind of an interesting viewpoint, as I wouldn't necessarily say those people DESERVE to be poor; I would rather say that they are simply poor due to unfortunate circumstances..

.

That isn't the only job opportunity for the handicapped, there are better and higher paying jobs for them elsewhere.

Yeah, if McDonalds is the best you can do, you deserve to be poor.

 

[DiamondDave]

I had never heard this before, but apparently this is not the first study to make such findings. This really should make people rethink how they feel about the minimum wage.

Doubling McDonald's Salaries Would Cause Your Big Mac To Cost Just 68¢ More: Study [UPDATE]



Doubling McDonald's Salaries Would Cause Your Big Mac To Cost Just 68¢ More: Study [UPDATE]

Except they don't count on things like increasing other salaries.. for assistant managers do not want to make the same as the unskilled people they are managing.. and that goes up the line... and not just in McD's, but in every field and in every company....lest we not forget the increased wages at paper suppliers, beef suppliers, electric suppliers, transportation, etc... the cost of what it takes to provide the business with what it needs goes up dramatically with a large increase in minimum wage

You people cannot see the forest for the trees

Actually, I have no problem seeing the forest for the trees. The research is sound and it only confirms other studies that have said the same thing. That does not mean that it wouldn't come with any costs or that we should go that far with it. What it does suggest is that raising the minimum wage somewhat would't be the end of the world as cons like you continue to spout day in and day out. You guys think the minimum wage should be $3 per hour and everyone should be happy with that. Sorry if I do not agree with your ridiculous conclusions.

The research is not sound.. it is partial and incomplete in its scope.. it is complete bullshit

 

[g5000]

Working at McDonalds isn't supposed to be a career. If that's the best you can achieve in life then you deserve to be poor.

Well I guess folks with metal disabilities and cognitive problems who choose to work at McDonald's because of the relative simplicity of the work deserve to be poor.

Kind of an interesting viewpoint, as I wouldn't necessarily say those people DESERVE to be poor; I would rather say that they are simply poor due to unfortunate circumstances..

.

Appeal to emotion fallacy.

"Roll out the cancer lady!" That's what Democrats would shout when they wanted ObamaCare. Find some pathetic creature and exploit her as representative of all the uninsured. "Roll out the incest rape victim!" That's what pro-choicer's shout when they want to hide the million-plus annual abortions that have nothing to do with rape or incest.

Now you shout, "Roll out the Down syndrome kid!" to represent the doofus who dropped out of high school who thinks he should be put in charge of the store the first day on the job.

The handicapped receive government assistance, by the way. As they should.

The doofus should be pulling himself up by his own bootstraps, not hiding behind the Down sydrome kid.

 

[KevinWestern]

Working at McDonalds isn't supposed to be a career. If that's the best you can achieve in life then you deserve to be poor.

Well I guess folks with metal disabilities and cognitive problems who choose to work at McDonald's because of the relative simplicity of the work deserve to be poor.

Kind of an interesting viewpoint, as I wouldn't necessarily say those people DESERVE to be poor; I would rather say that they are simply poor due to unfortunate circumstances..

.

That isn't the only job opportunity for the handicapped, there are better and higher paying jobs for them elsewhere.

Yeah, if McDonalds is the best you can do, you deserve to be poor.

You say this like jobs are easy to come by in all situations. Not the case.

Sometimes McDonald's is the only viable option in a particular area, and people are unable to move to a different one due to mobility issues, needing to be near caretaker, etc.

I know plenty of small towns where there is really not too many jobs to go around. Just think you're making too general of a statement.


.

 

[Political Junky]

I had never heard this before, but apparently this is not the first study to make such findings. This really should make people rethink how they feel about the minimum wage.

Doubling McDonald's Salaries Would Cause Your Big Mac To Cost Just 68¢ More: Study [UPDATE]

McDonald's can afford to pay its workers a living wage without sacrificing any of its low menu prices, according to a new study provided to The Huffington Post by a University of Kansas student.

Doubling the salaries and benefits of all McDonald's employees -- from workers earning the federal minimum wage of $7.25 per hour to CEO Donald Thompson, whose 2012 compensation totaled $8.75 million -- would cause the price of a Big Mac to increase just 68 cents, from $3.99 to $4.67, Arnobio Morelix told HuffPost. In addition, every item on the Dollar Menu would go up by 17 cents.

McDonald's declined a request to comment from The Huffington Post.

This research comes as fast-food workers across the country strike for a $15 per hour minimum wage. Workers are also protesting for the right to unionize without fear of retaliation. Protesters are holding strikes in seven cities over a four-day period, according to Salon.

Morelix looked at McDonald's 2012 annual report and discovered that only 17.1 percent of the fast-food giant's revenue goes toward salaries and benefits. In other words, for every dollar McDonald's earns, a little more than 17 cents goes toward the income and benefits of its more than 500,000 U.S. employees. Thus, if McDonald's executives wanted to double the salaries of its employees and keep profits and other expenses the same, it would need to increase prices by just 17 cents per dollar, according to Morelix.

Doubling McDonald's Salaries Would Cause Your Big Mac To Cost Just 68¢ More: Study [UPDATE]

Except they don't count on things like increasing other salaries.. for assistant managers do not want to make the same as the unskilled people they are managing.. and that goes up the line... and not just in McD's, but in every field and in every company....lest we not forget the increased wages at paper suppliers, beef suppliers, electric suppliers, transportation, etc... the cost of what it takes to provide the business with what it needs goes up dramatically with a large increase in minimum wage

You people cannot see the forest for the trees

The doubling of salaries, in that study, includes the CEO's multi million dollar salary.

 

[Katzndogz]

When salaries go up, the taxes go up, worker's compensation is tied to wages so as wages go up so does worker's compensation insurance. The payment employers make into unemployment goes up. It isn't a matter of giving the employee a few dollars more. Everything connected with that employee goes up.

Companies that by their nature cannot afford to pay people to support families should really just not hire anyone with a family to support. Some companies have a policy of "up or out". In a determined amount of time, the employee either advances or is let go. This is something they ALL should have. Even burger flippers and French fry salt shakers should be subject to up or out. This guarantees that an employee will advance and make more money or be replaced by someone who will.

 

[Katzndogz]

Working at McDonalds isn't supposed to be a career. If that's the best you can achieve in life then you deserve to be poor.

Well I guess folks with metal disabilities and cognitive problems who choose to work at McDonald's because of the relative simplicity of the work deserve to be poor?

Little bit harsh of a statement, as I wouldn't necessarily say those people DESERVE to be poor; I would rather say that they are simply poor due to unfortunate circumstances..

.

Really, yes, they do deserve to be poor. They certainly aren't going to be anything other than poor, and no one owes someone who by virtue of being mentally disabled or who has cognitive problems anything. A job is not an act of charity.

 

[DiamondDave]

I had never heard this before, but apparently this is not the first study to make such findings. This really should make people rethink how they feel about the minimum wage.

Doubling McDonald's Salaries Would Cause Your Big Mac To Cost Just 68¢ More: Study [UPDATE]



Doubling McDonald's Salaries Would Cause Your Big Mac To Cost Just 68¢ More: Study [UPDATE]

Except they don't count on things like increasing other salaries.. for assistant managers do not want to make the same as the unskilled people they are managing.. and that goes up the line... and not just in McD's, but in every field and in every company....lest we not forget the increased wages at paper suppliers, beef suppliers, electric suppliers, transportation, etc... the cost of what it takes to provide the business with what it needs goes up dramatically with a large increase in minimum wage

You people cannot see the forest for the trees

The doubling of salaries, in that study, includes the CEO's multi million dollar salary.

And yet the specifics of the 'study' are left out and not published ANYWHERE... hmmm...

And as stated... let's just forget about the ripple effect elsewhere