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View Diary: Largest Walkout in U.S. History of Fast Food Workers Begins in Seven Cities (149 comments)

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  •  companies need to make profits (0+ / 0-)

    i suppose McDonalds could raise salaries such that the company earns a profit of one dollar per year. But they would soon be out of business as no one would invest in them.

    profits themselves are a signal. If Wendy's profits are too high, that will encourage others to enter the marketplace to grab a slice of the pie. That will increase the supply of labor which is also beneficial.

    And if an employee is undervalued at their current job, then they should simply take their skills to another employer who'd pay more. The thing is, with a fast food worker, there are not valuable skills. 95% of the working age population can do the same job within a few weeks.

    So unskilled labor will always be low pay. Unless it's really unpleasent or dangerous which will reduce the supply of labor. this is Econ 101 stuff.

    •  McDonald's made $5.5b in profits last year (14+ / 0-)

      per this. They clearly are maximizing profit at least partially on the backs of paying their employees below the average hourly wage. There are also other ways to increase the average pay of your employees without cutting into profits.

      profits themselves are a signal. If Wendy's profits are too high, that will encourage others to enter the marketplace to grab a slice of the pie. That will increase the supply of labor which is also beneficial.
      That's nonsense; please restate.
      And if an employee is undervalued at their current job, then they should simply take their skills to another employer who'd pay more. The thing is, with a fast food worker, there are not valuable skills. 95% of the working age population can do the same job within a few weeks.
      This assumes that the job market lacks a labor supply AND that people are using the majority of their money for elastic needs. Neither is true in reference to people working at a McDonald's location.
      So unskilled labor will always be low pay. Unless it's really unpleasent or dangerous which will reduce the supply of labor. this is Econ 101 stuff.
      We're not talking about 'low' pay in reference to 'all other pay'. We're talking about low pay in reference to what that pay can provide and what lifestyle it can maintain. CPP, etc. I would never argue that it should be the case that someone can support a spouse and 3 kids working as a cashier at McDonald's, but right now they cannot even support themselves!

      Don't give me the Econ 101 stuff...you've made some blatant errors in your post that betrays your grasp of Econ 101.

      I was gonna listen to that, but then, um, I just carried on living my life. - Aldous Snow

      by GoGoGoEverton on Mon Jul 29, 2013 at 08:59:38 AM PDT

      [ Parent ]

    •  $15 AN HOUR IS LOW PAY. (6+ / 0-)

      $7.25 is a poverty wage. Corporate ass-kisser.

    •  Ayn Rand, (2+ / 0-)
      Recommended by:
      Patango, seabos84

      I thought you were dead!

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