McDonald’s CA franchisee on new minimum wage: "The sheer scale of the impact is just breathtaking"

[Andylusion]

Market demand is the SOLE determiner of prices.

Let me guess...You're a big "BUY AMERICAN" type.
Fcluck quality.
Screw price.
Buy American.

They tried that remember?
It wasn't wages that killed the US auto market.
It was greed as in "planned obsolescence."

Nothing you said there is accurate. You don't even know what planned obsolescence is.
Market demand is not the sole determiner of prices. Saying that suggests you have never run a business, or started one, in your life.

If you don't think the business owner first determines how much it will cost him to make the product or service, before putting a price on it, you are absolutely out of your mind.

 

[Andylusion]

That is correct.
If a business cannot recover operating costs it will cease operating.
Market demand determines prices, not employee wages.

Do employee wages of the shipbuilder change the price a billionaire is willing to pay for his yacht?
No, not at all.

And then there are no jobs for zero skill labor, and all those people end up unemployed and homeless on the street.

 

[Andylusion]

Wow!
What, 35 years ago?
How many kids did you have?
How much did your apartment cost?

someone's making stuff up.
Me? I'm discussing pure economics.

You don't work at Wendy's when you have kids. You don't rent an apartment when you work minimum wage. Doing that would make you a moron.

See this is the whole problem with your line of thinking.
You do stupid, and then complain you live stupid.
No one in the past thought this way.

My father met my mother, working at a restaurant. They got married before they were out of college.
My father didn't think "gee how am I going to buy a house, and pay for a family and buy a car, busing tables?"

No one in the past ever thought this dumb. Not one did. No one in the 50s, 60s, 70s, or even 80s, thought something so stupid.

No one got a job that any high school drop out can get, that pays what a high school drop out earns... and then complains they are living the life of a high school drop out.

Everyone understood that if you want a middle class life, you got a middle class job, that pays a middle class wage.

My father didn't start walking around with a sign, screaming that busing tables didn't pay for a house and a car. He wasn't a moron like we have today. He understood that before he started popping out kids, and buying a house, he needed a middle class job, that paid him a middle class wage.

The reason you and people like you are so sad and angry all the time, is because you honestly think you should get a job that a high school drop out can do, and live a middle class life... and that makes you a moron. Just saying. Anyone who thinks that way, is going to be sad and bitter for the rest of their pathetic stupid lives. Because that is dumb, and it will never happen.
NEVER.
Period. No amount of laws will change this. You will never live a middle class life flipping burgers. Never. Doesn't happen in Europe. Doesn't happen anywhere. Won't happen here.

Time to grow up, and stop thinking stupid.

 

[Crepitus]

I was paid $4.25 an hour.

In 1980?

 

[Dadoalex]

If a business cannot recover operating costs it will cease operating.

Yes. It will raise prices if allowed to

If not the business ceases

Is that your plan?

Drive small business out of business?

What california has done is suppress the economy and shrink the demand for labor

Small?
26+ employees.
That's not mom and pop shops
and
Businesses can set prices wherever they want.
Whether or not the market buys is another matter.

 

[Dadoalex]

Yeah, they go out of business. That is exactly what they do.
Again, the car wash workers in NYC unionized, demanded $15/hour, and many car washes closed.
If you can't make a profit anymore, because the cost of labor is too high for you to make a profit.... then you close. Yes you close.
The business owner lays everyone off, shuts down operations, sells all the equipment that has value, sells the property if they own it, and then they go do something else with their money.

Back in 2008, there was restaurant owner, the minimum wage went up, he closed the restaurant, laid off the workers, sold the equipment and the property... and then he bought a bunch of oil leases, rented a drilling rig, and struck oil on 7 of 12 leases. This was in the papers.

If the minimum wage makes it so you can't make a profit, because the minimum price for labor, is higher than the value of that labor, you lay off everyone and do something else with your money.

No amount of "business instincts" is going to fix that. There is no magic business instinct that is going to allow you pay a middle class income, for burger flippers, and just magically make a profit. That will never happen.

If you think it can, by all means you prove it. Start your own burger joint, and pay your burger flippers a middle class wage. Show us how it's done. You supposedly have the magical business instincts. Back up your words with actions.

When you start a burger joint that pays all their burger flippers $50,000 or whatever your made up living wage is, when you show us how it is done, the rest of the industry will follow. Back up your empty talk with actions.

Of course you won't, because you'll go broke and lose everything you invested into your burger joint.

You continue to demonstrate your lack of understanding of the topic.

Me? burger flippers?
BWAHAHAHAHAHAHAHA

I'm high end steakhouse where the front staff and Chefs earn 6 figures
I deal with professionals not underpaid burger flippers.

 

[Dadoalex]

Nothing you said there is accurate. You don't even know what planned obsolescence is.
Market demand is not the sole determiner of prices. Saying that suggests you have never run a business, or started one, in your life.

If you don't think the business owner first determines how much it will cost him to make the product or service, before putting a price on it, you are absolutely out of your mind.

If you think the price a seller puts on a product has anything to do with the price a buyer will pay then I have a great auto-warranty for you.

 

[westwall]

What happened when cotton gins replaced the manual laborers?

Productivity and profits went up.

 

[Mac-7]

Small?
26+ employees.
That's not mom and pop shops
and
Businesses can set prices wherever they want.
Whether or not the market buys is another matter.

26 employees is not unusual for a 24 hour fast food place

A single shift could have a dozen or more

 

[Andylusion]

In 1980?

1996 is when the minimum wage went up from $4.25.

 

[braalian]

They can’t keep the employees they have now. They’re constantly begging for applicants. They’re in no position to layoff anyone

 

[Andylusion]

Small?
26+ employees.
That's not mom and pop shops
and
Businesses can set prices wherever they want.
Whether or not the market buys is another matter.

That's the point. You keep making our point, than thinking you contradicting us.
When the minimum wage goes up, and that forces up the price beyond what customers are willing to pay, then everyone loses their jobs because the business closes.
If you raise the minimum wage, the business must raise prices. If the 'market' is not willing to pay that price then the business closes, and all those people you think you are 'helping', end up unemployed.

Again, the NYC car wash workers Unionized and demanded a $15/hour minimum wage.
Many car washes closed, and many others converted to full automation. In all cases, all the workers lost their jobs. You didn't help them. You destroyed them.

 

[Andylusion]

You continue to demonstrate your lack of understanding of the topic.

Me? burger flippers?
BWAHAHAHAHAHAHAHA

I'm high end steakhouse where the front staff and Chefs earn 6 figures
I deal with professionals not underpaid burger flippers.

Which I actually assumed from the start.
Left-wingers are extremely elitist. They never care how their policies destroy the people who are poorer than themselves.
I could have easily predicted this response from you.

 

[hadit]

California accounts for about $3.5 Billion in annual McDonalds revenues.

The people whining are the franchise owners who will have to settle for a little less profit.

But if you think McDonalds is walking away from $70M per year in clear profit then...Well thinking really doesn't enter into the proposition then does it?

A little less profit? The average profit margin of a McD's franchise is between 5% and 10%. There's not a lot of wiggle room in there. And if you think jacking the labor costs that high means just a "little less profit", you're not paying attention.

 

[Andylusion]

If you think the price a seller puts on a product has anything to do with the price a buyer will pay then I have a great auto-warranty for you.

And if you think wages have nothing to do with prices, I have a great auto-warranty business for you.

 

[martybegan]

Toyota Camry Chevy Monte Carlo
Sony TV or who makes TVs in the US?

Why is it that these are successful while cheaper American brands are not?

QUALITY

Look up "planned obsolescence" for reference.

Again, they can make them cheaper overseas, even with shipping costs for them to get here.

And you still like to pretend quality is only the responsibility of the designer/manufacturer, and not of the workers involved as well.

 

[martybegan]

So that is a no. Thanks.

Not surprised you can't understand basic economics.

 

[candycorn]

Not surprised you can't understand basic economics.

Not surprised you can’t answer a “yes” or “no” question.

 

[martybegan]

Not surprised you can’t answer a “yes” or “no” question.

Don't be surprised I don't play with gotcha setups.

 

[candycorn]

A little less profit? The average profit margin of a McD's franchise is between 5% and 10%. There's not a lot of wiggle room in there. And if you think jacking the labor costs that high means just a "little less profit", you're not paying attention.

Yeah...its terrible being a millionaire...

If this keeps up, they may only have one house in Malibu before too much longer.