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Old 11-06-2014, 04:39 AM
 
Location: Buffalo
165 posts, read 144,580 times
Reputation: 445

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Hey, surprise. When companies like Walmart and McDonald's pay low wages, their workers have to go on public assistance. And that means that low wages lead to higher public assistance use. In fact, raising the minimum wage to $10.10 would save the government $7.6 billion a year, because working people would be paid enough to live on

Of course, Republicans don't care. Their job is to protect their corporate welfare daddies like the Kochs and Waltons.

Raising the Federal Minimum Wage to $10.10 Would Save Safety Net Programs Billions and Help Ensure Businesses Are Doing Their Fair Share | Economic Policy Institute
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Old 11-06-2014, 05:29 AM
 
3,961 posts, read 3,496,941 times
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haha enjoy your $8 McDonald's cheese burger
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Old 11-06-2014, 05:44 AM
 
21,201 posts, read 30,404,475 times
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Quote:
Originally Posted by mjlo View Post
haha enjoy your $8 McDonald's cheese burger
Not likely from a company that regularly records billion dollar profits, nor from raising their average wage 20% (it's currently $8 an hour on average).
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Old 11-06-2014, 05:48 AM
 
3,961 posts, read 3,496,941 times
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Quote:
Originally Posted by kyle19125 View Post
Not likely from a company that regularly records billion dollar profits, nor from raising their average wage 20% (it's currently $8 an hour on average).
Mc Donalds is a real estate company. They own few of the actual restaurants. It's their franchisees that operate on MUCH smaller margins that would take the hit. $10/hr wouldn't be that bad you'd still see price increases since most customers order off the dollar menus. I've heard $15/hr mentioned before, that would put them in a negative cash flow situation.
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Old 11-06-2014, 06:09 AM
 
21,201 posts, read 30,404,475 times
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Quote:
Originally Posted by mjlo View Post
Mc Donalds is a real estate company. They own few of the actual restaurants. It's their franchisees that operate on MUCH smaller margins that would take the hit. $10/hr wouldn't be that bad you'd still see price increases since most customers order off the dollar menus. I've heard $15/hr mentioned before, that would put them in a negative cash flow situation.
$15 is too high for most though I would imagine their urban locations in higher cost big cities like NYC, Boston, San Francisco and Washington DC could/should be able to handle it. A vast majority of the fast food workers who were on strike or threatening were in cities like that and in my opinion have a valid argument. Again these employees are not talking a doubled salary as most are already at $10 an hour or more. If McDonalds (and others) cannot afford to pay their employees a living wage serving sub-par food, they have a bigger problem. Perhaps reducing their ridiculous advertising budgets to accommodating just one TV commercial per hour on the the major networks would allow for a bit more payroll as I'm pretty sure everyone has a pretty good handle as to who McDonald's is...and what they offer by now without pointing it out umpteen times a day in advertising.
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Old 11-06-2014, 06:28 AM
 
3,961 posts, read 3,496,941 times
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Quote:
Originally Posted by kyle19125 View Post
$15 is too high for most though I would imagine their urban locations in higher cost big cities like NYC, Boston, San Francisco and Washington DC could/should be able to handle it. A vast majority of the fast food workers who were on strike or threatening were in cities like that and in my opinion have a valid argument. Again these employees are not talking a doubled salary as most are already at $10 an hour or more. If McDonalds (and others) cannot afford to pay their employees a living wage serving sub-par food, they have a bigger problem. Perhaps reducing their ridiculous advertising budgets to accommodating just one TV commercial per hour on the the major networks would allow for a bit more payroll as I'm pretty sure everyone has a pretty good handle as to who McDonald's is...and what they offer by now without pointing it out umpteen times a day in advertising.
Well I feel like under that scenario when you're speaking of a living wage you're expecting those people to infinitely work in those positions. I don't think a minimum wage was ever designed to support a family or give a better quality of life. There are plenty of entry level jobs that don't require an education that start at or above $10/hr. There will always be situations where people cannot do more than what they are and the availability of the jobs are as such. There are also systems in place to help those people. But to suggest that the are not alternatives for most people working at that level seems disingenuous.
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Old 11-06-2014, 09:06 AM
 
11,177 posts, read 22,388,331 times
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Quote:
Originally Posted by mjlo View Post
Mc Donalds is a real estate company. They own few of the actual restaurants. It's their franchisees that operate on MUCH smaller margins that would take the hit. $10/hr wouldn't be that bad you'd still see price increases since most customers order off the dollar menus. I've heard $15/hr mentioned before, that would put them in a negative cash flow situation.
Right, for their franchises the average cost of labor is around 20% of their total expenses. Raising the $8 per hour wage to $10 per hour would raise their labor costs by 25%, and raise their total costs by 5%.

You would expect to get around a 5% increase in prices for bumping minimum wages to $10 per hour. I'm all for a min. wage of $10 per hour. It's very easy for the vast majority of workers who make more than minimum wage to ignore those workers - the millions of them. I think it would relieve a lot of stress and financial hardship. It would allow some people to pull themselves back off welfare and food stamps or at least decrease the dependency. The money is still taxpayer funded and flowing to the people, it's just a matter of if you give it in taxes and the government gives it to them or if they are getting it through work.

A base minimum wage should a least cover the costs of a person to be able to survive on their own. It's doesn't have to be $15 or extremely high, but obviously if you look at the wages adjusted for inflation the current $7.25 per hour is far lower than any minimum wage has been in the past 50 years - and we've surivived paying those costs to companies that employ minimum wages during that period. Yes things might cost a bit more - but what's wrong with that? We're living in a society here. It's not ALL about having the LOWEST cost hamburger.

You could actually DOUBLE the wages given at McDonalds, which no one is asking for, and prices would go up 20%. The $1.00 menu item to $1.20 or the BigMac from $4.00 to $4.80 is a lot, but not an insane amount....and this is by doubling the wages.

To get an $8.00 cheeseburger as opposed to the $1.50 you have now and have McDonalds get the same margin they have now, you would have to pay workers $181 per hour, or around $375,000 per year.

Last edited by Chicago60614; 11-06-2014 at 09:28 AM..
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Old 11-06-2014, 09:12 AM
 
Location: MMU->ABE->ATL->ASH
9,128 posts, read 17,152,817 times
Reputation: 9981
But don't forget the effect up and down the line..

The Products that are made by People who get wage increases, and the ones above them that get a bump up's also, so one who were getting $10, are now bump'ed up to 12/13$.

So the ripple effect, The Cost of the Buns, the Beef, the Increase in wages to the truck driver, the Guy who work in the diesel station that get bump in there pay pushing the diesel fuel up a penny per gallon.
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Old 11-06-2014, 09:20 AM
 
Location: The Springs
1,770 posts, read 2,141,695 times
Reputation: 1850
Quote:
Originally Posted by Simon Feltser View Post
Of course, Republicans don't care. Their job is to protect their corporate welfare daddies like the Kochs and Waltons.
You forgot the "Bain Capitals" and "General Electrics" while you're at it. Remember, Republicans just want to push grandmas off the cliff, poison the water, take your social security and kill off the very customers they're trying to peddle their wares to! What's another trillion here or there among friends? Honestly, there's not a modicum of difference between either party. Have another sip.
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Old 11-06-2014, 09:33 AM
 
Location: Paris
1,706 posts, read 2,051,195 times
Reputation: 990
Quote:
Originally Posted by Chicago60614 View Post
Right, for their franchises the average cost of labor is around 20% of their total expenses. Raising the $8 per hour wage to $10 per hour would raise their labor costs by 25%, and raise their total costs by 5%.

You would expect to get around a 5% increase in prices for bumping minimum wages to $10 per hour. I'm all for a min. wage of $10 per hour. It's very easy for the vast majority of workers who make more than minimum wage to ignore those workers - the millions of them. I think it would relieve a lot of stress and financial hardship. It would allow some people to pull themselves back off welfare and food stamps or at least decrease the dependency. The money is still taxpayer funded and flowing to the people, it's just a matter of if you give it in taxes and the government gives it to them or if they are getting it through work.

A base minimum wage should a least cover the costs of a person to be able to survive on their own. It's doesn't have to be $15 or extremely high, but obviously if you look at the wages adjusted for inflation the current $7.25 per hour is far lower than any minimum wage has been in the past 50 years - and we've surivived paying those costs to companies that employ minimum wages during that period. Yes things might cost a bit more - but what's wrong with that? We're living in a society here. It's not ALL about having the LOWEST cost hamburger.

You could actually DOUBLE the wages given at McDonalds, which no one is asking for, and prices would go up 20%. The $1.00 menu item to $1.20 or the BigMac from $4.00 to $4.80 is a lot, but not an insane amount....and this is by doubling the wages.

To get an $8.00 cheeseburger as opposed to the $1.50 you have now and have McDonalds get the same margin they have now, you would have to pay workers $181 per hour, or around $375,000 per year.
I don't think he was referring just to the basic cheeseburger though. Btw, if you convert it we actually do have $8 sandwiches here...
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