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View Diary: Fast food workers strike because 'these companies aren’t magically going to make our lives better' (62 comments)

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  •  Someone posted an analysis of raising wages (7+ / 0-)

    on the cost of food at McDonald's. It turns out a Big Mac meal would go up by about 70¢. Hardly a deal breaker. And if McDonald's wasn't run by arrogant pricks they'd discover that if the working poor had more money they'd spend more of it. Much of it at places like McDonald's, etc. The same goes for Mal*Wart and other low-wage employers. Ultimately by underpaying their own workers they're hurting themselves as well. Short-sighted idiots.

    Spite is the ranch dressing Republicans slather on their salad of racism

    by ontheleftcoast on Thu Aug 01, 2013 at 02:27:56 PM PDT

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    •  As things stand now taxpayers (8+ / 0-)

      are subsidizing those low wage paying businesses through the food stamps and Medicaid that their workers qualify for.  It's unreal to have us propping up these billion dollar industries for continuing to enslave their employees.

      Nobody who works at a job should be poor.  Ever.

      There already is class warfare in America. Unfortunately, the rich are winning.

      by Puddytat on Thu Aug 01, 2013 at 02:32:25 PM PDT

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    •  IIRC, that was 68 cents, for wages of $ 15 / hr... (0+ / 0-)

      ...which may or may not be realistically attainable.
      I also recall that at a wage of something like $ 10 - 12 / hr, the incremental cost hit for a Big Mac was supposedly on the order of a nickel.
      OTOH, I've also heard that at least one of those studies was challenged on the basis that they used the labor-cost ratio for the MacDonalds corporation, which has very different cost structures from the franchises, which are the employers in question in most cases.
      So, grains of salt for all of the above, possibly.
      I'd happily pay a dollar more for my occasional fast-food forays, if it meant something closer to a living wage -- not to mention simple respect -- for the staff.

      •  The analysis had many flaws (1+ / 0-)
        Recommended by:
        coffeetalk

        including the notion that an extra 68 cents would not impact the volume of burgers sold. As someone who was clearly paying attention in Econ 101 commented, if McD's could sell the same number of Big Macs and charge an extra 68 cents they would have already raised the price. McD's recently took the Angus Burger off their menu because at the $4.99 price it wasn't selling. The demand for fast food is very elastic, the margins at the franchise level are skinny and the competitions has now focused intensely on price.

        "let's talk about that"

        by VClib on Thu Aug 01, 2013 at 05:16:20 PM PDT

        [ Parent ]

        •  I doubt it would... (0+ / 0-)

          ...if the minimum wage increase was universal and not just limited to McDonald's.  "Hey, my wages just doubled." "Hey, the price of a big mac meal just went up $0.70 because of your raise." "So?  Now I can actually afford to buy one occasionally!"

          An inflation of about 10% in price when your income just went up 100% -- particularly when the former's the result of the latter -- isn't exactly a thing to get hung up about.

          •  Praxical - I agree (1+ / 0-)
            Recommended by:
            Praxical

            If the minimum wage goes up it impacts all employers of minimum wage workers and prices will rise for all fast food. The article in question suggested that McD's by itself could easily double what was paid, even if their competitors didn't, which is nonsense.

            "let's talk about that"

            by VClib on Thu Aug 01, 2013 at 09:14:20 PM PDT

            [ Parent ]

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