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This Cornell study states that a 10-percent increase in the minimum wage was found to lead within a few months to about a 1.5-percent increase in limited-service restaurant prices and a 0.3 percent increase in full-service restaurant prices.
And another study finds that: "a three percent price increase would enable fast-food firms to accommodate a $15 an hour minimum wage without reducing employment or profits"
]If a large number of people have an income problem,[/b] shouldn't government do the right thing by either dropping the regulatory mandates that put housing out of reach of those with an income problem, or start Making Home Affordable by addressing the income problem? If the latter is redistributionist and inappropriate, relaxing regulation is the only feasible solution.
Not if the "income problem" is a lifetime of bad decisions, starting with useless degrees, and continuing with failure to find decent paying jobs, not being smart with the income they are making, and finishing with not adequately saving for retirement.
Just read about this City Councilmember in Los Angeles.
His bright idea isn't to have a $15 minimum wage...but a $15.25 minimum wage!
Wow what a genius!
His big project right now is working on a memorial service/party hosted for Prince at CityHall.
With the main 'sponsor' that is also an activist buddy of his that was jailed for bribery.
No I'm not joking. Activist gets 4-year term for bribery - latimes
"Harris-Dawson wants to go even further than Garcetti, saying he "stridently" supports a citywide increase to $15.25 an hour.
If a large number of people have an income problem, shouldn't government do the right thing by either dropping the regulatory mandates that put housing out of reach of those with an income problem, or start Making Home Affordable by addressing the income problem?
Still the same nonsense.
Regulatory mandates do not increase the value of assets such as Real Estate, but Supply & Demand does.
If you cannot afford rents/mortgages, then you need to move to a place where you can afford it.
Originally Posted by 2sleepy View Post
No, actually there is plenty of data suggesting that a $15 an hour minimum wage would require a price increase of about 4.3%, that would add 17 cents to the price of a big mac.
The studies like you are talking about is it will raise prices to increase by 4.3%. They are not an industry by industry study. When you look at McDonald's and other fast food restaurants where 1/3rd of the sale goes to labor, it is something else. You double the wages for all but managers who are paid higher it is a different story. If a sale is $3 for a small burger, $1 goes to salary. If you double the salary for 50 to 60 people working at or just above minimum wage that is another $1 that has to be added to the price of the hamburger, or a 33% jump.
They are already introducing the self order Kiosk that will eliminate a lot of jobs. They admit this is being done because of the anticipated and real minimum wage jump.
Here are the self order machines now going into McDonald's, as the first step to fight the $15 minimum wage which has not even been voted on for a national minimum wage. Photos of them already in use at some restaurants and will soon go national as they are working much better and faster than fooling with human cashiers as in the past.
I read the last study 2sleepy cited because I live in NYS and it concerned NYS. Well the study used all of the ideas of the UMass Peri study. Even if you accept that as valid, the prediction was that total costs would rise by 12%. After that the study was total BS. They claimed a high employee retention rate would offset costs...no data, just BS. Then they claimed that if costs and prices rise, the fast food industry will have higher sales and make more money which would offset the increase in labor costs. Unbelievable BS!
And the claim you are making is just silly. Do you really think that this burger machine will cook the burger put mustard on it, wrap it and hand it to the customer? Don't you think there will need to be people there to fix the machine when it quits working, or to quality check the product?
What you do not realize is, McDonald's is opening the first robot operated restaurant on 4th of July in Pheonix Arizona. This is being done to perfect the conversion from people to robotic equipment. McDonald's always tests any new equipment, or a new product to find any bugs in their system before going national/world wide.
And yes they have equipment to do nearly everything. In fact each hamburger will be made with the exact garnishes that the customer orders at the self order Kiosk, that takes his exact order and accepts his money. The robotic equipment will do it exactly as ordered, with no human error as is so often happening today.
There will be a small staff, to stock the machine, etc.
Due to the cost to produce the hamburger dropping drastically after going robotic, McDonald's will be able to improve the quality of their products, and offer a gourmet quality hamburger at fast food prices if they desire to do so.
The big jumps in labor coming up, are forcing them to make a huge cut in the labor force, and using automatic machines to lower their costs of operation without raising prices.
You don't think it can happen, but it is already happening and the first one will open on 4th of July, and soon they will be converting all McDonald's to the new method.
Last edited by oldtrader; 04-29-2016 at 05:03 PM..
Why wouldn't they be doing all that anyway, minumum wage increase or not? Automation is going to happen anyway and it's good for society overall. Human labor is too valuable to waste on such meniality. Society will find more productive tasks for that displaced labor.
Agreed. People are talking like businesses are charities. They're not keeping MW people on "in the goodness of their hearts", with the MW hike being the deciding factor. MW or not, when automation comes in, they're taking it.
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