Increasing The Minimum Wage: Did You Know This?

[Darkwind]

Lets just ignore the market effect of such an increase to the product.

What has changed that the value of the work being done has increased?

The same buttons are getting pushed. The same incorrect change is being returned to the customer. The same frozen patty is being tossed in a chain belt and run through an oven.

In other words, the value of the service provided has not gone up.

McD could just as easily raise the price and just pocket the extra cash if it was that simple.

If the market will bear out a 60 cent increase, why don't they increase it and pocket the extra profit?

 

[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..

.

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.

I was criticizing the word "deserve". I don't think mentally challenged people who have a difficult time with tasks normal people breeze through deserve to be poor. I think it's better to say they just are poor, because many times there are no choices to be made; it is what it is.

.

 

[Luddly Neddite]

I've read the same thing. Also, that without tax-funded subsidies to our farmers and ranchers, hamburger would cost more than $15 a pound.

Costco has proven that paying a living wage is ultimately good for business.

Note to haters - quit trying so hard to hate EVERYTHING and EVERYONE. Give yourself a break from hating - just for a little while. You might just like it. Seriously, I read some of the sad sick shit you post and wonder how you get through your days pulling all that hate behind you.

 

[KevinWestern]

I've read the same thing. Also, that without tax-funded subsidies to our farmers and ranchers, hamburger would cost more than $15 a pound.

Does that $15/lb statistic work for hamburgers that are 2% beef (like at McDonald's)?

.

 

[auditor0007]

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.

Again, reading the article helps answer some questions. While I think this is interesting, it isn't proof that the study is correct, but it does make you think. As far as having to raise other prices, that was addressed in the study. Overall prices would need to be increased ten percent.

We can always take the reverse attitude, which seems to be the ones cons support, that we should reduce pay, which would make everything cheaper and everyone would buy more, therefore the "job creators" could add more below minimum wage jobs.

 

[auditor0007]

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?

.

Like I said, it's something to think about. That doesn't necessarily mean I completely agree with it, but it is something we should take a closer look at. The assumption most people have is that in order to significantly increase pay, prices would have to increase drastically. Remember one other thing; by paying these people more, they have more to spend also which should increase sales to all businesses. Again, something to think about.

 

[Leweman]

Why not just higher twice as many people at current minimum wage instead and then unemployment will go down and these people won't have to work as hard. Yippee.

 

[Luddly Neddite]

I've read the same thing. Also, that without tax-funded subsidies to our farmers and ranchers, hamburger would cost more than $15 a pound.

Does that $15/lb statistic work for hamburgers that are 2% beef (like at McDonald's)?

.

OMG! They're up to 2%???

Wow.

 

[Luddly Neddite]

Why not just higher twice as many people at current minimum wage instead and then unemployment will go down and these people won't have to work as hard. Yippee.

If you're so friggin smart, how come you can't even spell

H-I-R-E ?

 

[R.C. Christian]

Why not just higher twice as many people at current minimum wage instead and then unemployment will go down and these people won't have to work as hard. Yippee.

If you're so friggin smart, how come you can't even spell

H-I-R-E ?

He was simply attempting to communicate with you in a language you can more easily understand.

 

[Avorysuds]

The country is coming to it's and and I'll admit, part of me is curious to see what comes after. There are simply too many stupid people like the OP who's vote counts just as much as mine.

With all the welfare and min wadge laws you would think America would have no poor, yet "the poor" have grown by leaps and bounds. So please, keep attacking the people that predicted this mess and even showed you why it would turn out this way.

 

[Mr Natural]

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.b

Higher prices means falling sales. Simple fact.

Just think how cheaply we could eat if we could go back to the good old days of slave labor.

 

[Avorysuds]

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.b

Higher prices means falling sales. Simple fact.

Just think how cheaply we could eat if we could go back to the good old days of slave labor.

Just think how great we would all eat when everyone makes the same wadge no matter the job, man you would be in heaven!

 

[Avorysuds]

I wonder how many hours it would take the economy to fall into chaos if Obama the Demi-God came out and announced all employers must now pay a minimum of 16$ an hour, for any and all jobs that prior to that moment paid anywhere under that amount.

Or maybe I and anyone with a brain would be proven wrong and a Utopia would be born!

 

[Missourian]

The entire story and analysis is bunk...according to...Huffington Post.

They were had...they wanted to believe it, so they printed it.

At least they had the intestinal fortitude to retract the story after it was proved bogus.

On Monday, The Huffington Post published a story entitled "Doubling McDonald's Salaries Would Cause Your Big Mac To Cost Just 68¢ More." HuffPost has since learned that the research used as the basis of the story contains significant errors that cast doubts on its claims. This story has replaced the one originally published in this space.


The story drew on data presented by Arnobio Morelix, an undergraduate student from The University Of Kansas who identified himself as a researcher for the school. In an interview, Morelix told the HuffPost that only 17.1 percent of McDonald's revenue goes toward salaries and benefits, meaning that for every dollar McDonald's earns, a little more than 17 cents goes toward the income and benefits of its employees.


However, as the Columbia Journalism Review subsequently noted, Morelix's analysis only takes into account the payroll and employee benefits of McDonald's company-operated stores while excluding franchise businesses. Prior to publication, HuffPost asked Morelix if his analysis included franchises and he said it did. He later conceded it did not. McDonald's franchises make up more than 80 percent of McDonald's restaurants worldwide. This means that a majority of the payroll and employee benefits of McDonald's workers are not included in Morelix's findings.​

]​

Errors in McDonald's Wage Analysis

 

[Noomi]

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]

Apparently customers are so selfish they wouldn't want to pay the extra 68 cents.

 

[auditor0007]

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.b

Higher prices means falling sales. Simple fact.

Just think how cheaply we could eat if we could go back to the good old days of slave labor.

Just think how great we would all eat when everyone makes the same wadge no matter the job, man you would be in heaven!

This just shows how much of a dupe you are when you say stupid crap like this. Nobody thinks everyone should make the same amount of money regardless of the job. You're just trolling as usual. Can't have a reasonable discussion with you guys because you are incapable of thinking beyond your close minded beliefs.

 

[auditor0007]

Funny thing about the minimum wage; when it was at it's highest in real dollars, which was 1968, unemployment was 3.6%. The following year, unemployment actually dropped to 3.5%. As the minimum wage stagnated after that time and lost value, guess what happened? Unemployment went up.

 

[Missouri_Mike]

Just think how cheaply we could eat if we could go back to the good old days of slave labor.

Just think how great we would all eat when everyone makes the same wadge no matter the job, man you would be in heaven!

This just shows how much of a dupe you are when you say stupid crap like this. Nobody thinks everyone should make the same amount of money regardless of the job. You're just trolling as usual. Can't have a reasonable discussion with you guys because you are incapable of thinking beyond your close minded beliefs.

You're the f*cking moron that posted the OP.

 

[auditor0007]

Just think how great we would all eat when everyone makes the same wadge no matter the job, man you would be in heaven!

This just shows how much of a dupe you are when you say stupid crap like this. Nobody thinks everyone should make the same amount of money regardless of the job. You're just trolling as usual. Can't have a reasonable discussion with you guys because you are incapable of thinking beyond your close minded beliefs.

You're the f*cking moron that posted the OP.

No, I'm the person who posted the OP. I said it should make us think more about increasing the minimum wage. I never said I agreed that we should double it. The moron is you who cannot see the light of day. Tell me, you f*cking moron, why is it we had such low unemployment in 1968 with the highest minimum wage ever, and why did unemployment increase when the minimum wage fell over time? I'm sure you will pull some stupid shit out of your ass to make you look like an even bigger fool.