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View Diary: Bill Maher's excellent argument for a living wage (63 comments)

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  •  McDonalds makes a profit in Australia, (15+ / 0-)

    and they have to pay their workers there $15 an hour.

    Strength and dignity are her clothing, she rejoices at the days to come; She opens her mouth with wisdom, and the law of kindness is on her tongue.

    by loggersbrat on Sat Oct 26, 2013 at 08:38:04 AM PDT

    [ Parent ]

    •  So? (1+ / 0-)
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      VClib

      If you point is that franchise owners here in the U.S. could also make a profit by paying a minimum wage of $15 an hour, you'd a lot more than that fact to make that statement.  

      Just by way of example, you'd need more information on individual franchise costs in Australia.  For example, what are the OVERALL costs per employee there as compared to the U.S.?  (Employee salary is only one part of employee costs -- if other costs are lower, you can pay the employee more and still remain profitable.)  What are the other non-employee costs in the two places -- utilities, the food, local taxes, that kind of thing?  What percent of expenses are employee costs in the two places (the lower the employee expenses are as a matter of total expenses, the less an increase in employee costs affects profitability)?  What is the tax structure like in the two places (that often makes a big difference in profitability)?

      And you'd also need market information.  What prices are charged for the same item in both places?  How do price increases or decreases affect sales (and thus profitability) in the two markets?  

      It's not as simple as saying, they pay employees more in another country and make a profit, so they can here.  Only someone who has no idea whatsoever of the economics of business would make that kind of conclusions.   That kind of conclusion may be true, and it may not -- you'd need a LOT more information to determine that.  

      •  I've been watching the prices at McDonalds's (0+ / 0-)

        go up along with the cost of food and power and whatever else for the last 50 years.  I'm sure the franchisees in Australia factor salary costs into their pricing.  Which is what will happen when the minimum wage goes up here.  I may only listen to the radio in my car, but when a McDonald's ad comes on, they ALWAYS say that prices may vary according to location.

        You really have to stop assuming that those of us who make succinct responses are too stupid to have actually thought anything through.

        Strength and dignity are her clothing, she rejoices at the days to come; She opens her mouth with wisdom, and the law of kindness is on her tongue.

        by loggersbrat on Sat Oct 26, 2013 at 01:50:11 PM PDT

        [ Parent ]

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