Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
My main issue with the minimum wage as-is, is that when companies are paying employees at a level that requires supplemental taxpayer subsidies to survive, those companies are essentially being subsidized by the government. Particularly when companies like WalMart use those wage subsidies to undercut businesses that actually pay fair wages, and even monopolize the labor market in rural areas.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,576 posts, read 81,186,228 times
Reputation: 57813
Quote:
Originally Posted by FrankMiller
Who has time to produce and cook their own food when they have to work two jobs to provide a living for their family?
While it was 15 years ago and I was younger, I worked one job from 7am-5pm every day, followed by another from 5:30-9pm and all day Sunday. I still managed to spend time with my wife and kids, but I admit that year or so wasn't easy.
My main issue with the minimum wage as-is, is that when companies are paying employees at a level that requires supplemental taxpayer subsidies to survive, those companies are essentially being subsidized by the government. Particularly when companies like WalMart use those wage subsidies to undercut businesses that actually pay fair wages, and even monopolize the labor market in rural areas.
I agree. This is why I don't understand the argument against raising the minimum to an appropriate level.
We can either get companies like Walmart to pay more for their employees, or we will make up the difference ourselves in the form of our taxes going to subsidize them. Walmart can well afford to pay more in wages.
And, what do people do when they get a raise? They put it back into the economy and pay more in taxes. How is that harmful?
LOL! You claimed there WAS no inflation before 1913.
Not only was there. but it went in wild swings that undermined economic activity and helped promote panics, collapses, and depressions. That's why the FED was created. It's positive influences can be seen especially clearly in the post-WWII world.
I think people seem to forget that fast food joints are franchises with an already low profit margin. I don't think they could afford to pay $15 an hour. Nor should they, these jobs are ridiculously easily replaceable and it makes no economic sense for them to pay more. They can find loads of people willing to work for 7 bucks an hour. Supply and demand at work here. Would I like to see people paid more? Absolutely, however the real world does not work like that.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,576 posts, read 81,186,228 times
Reputation: 57813
Quote:
Originally Posted by Lowexpectations
What are the profit margins for a MCD location?
Surprisingly low, due to high rent, franchise fees, royalties, and having to buy everything from the corporation. And not being able to set your own prices as high as you would like. Those with 4+ stores can make a good living, with only one they have to do a huge volume to make any money at only about
3-10% of gross sales. Even the corporation which makes money from franchisees and also from company owned stores only makes about 20% profit, of course that's a huge dollar amount. By comparison, the small business I had for 17 years (graphics & signs) averaged 37% profit, and I paid my 2-4 skilled employees well over minimum wage.
Surprisingly low, due to high rent, franchise fees, royalties, and having to buy everything from the corporation. And not being able to set your own prices as high as you would like. Those with 4+ stores can make a good living, with only one they have to do a huge volume to make any money at only about
3-10% of gross sales. Even the corporation which makes money from franchisees and also from company owned stores only makes about 20% profit, of course that's a huge dollar amount. By comparison, the small business I had for 17 years (graphics & signs) averaged 37% profit, and I paid my 2-4 skilled employees well over minimum wage.
Franchise owners are typically around 10% in profit. Looking at s&p 500 companies margins it doesn't seem like that is very thin
Surprisingly low, due to high rent, franchise fees, royalties, and having to buy everything from the corporation. And not being able to set your own prices as high as you would like. Those with 4+ stores can make a good living, with only one they have to do a huge volume to make any money at only about
3-10% of gross sales. Even the corporation which makes money from franchisees and also from company owned stores only makes about 20% profit, of course that's a huge dollar amount. By comparison, the small business I had for 17 years (graphics & signs) averaged 37% profit, and I paid my 2-4 skilled employees well over minimum wage.
Franchise sure, but McDonalds pays over $3 billion per year in dividends to its shareholders. It's employee labor costs are less than $1 billion.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,576 posts, read 81,186,228 times
Reputation: 57813
Quote:
Originally Posted by Opin_Yunated
Franchise sure, but McDonalds pays over $3 billion per year in dividends to its shareholders. It's employee labor costs are less than $1 billion.
Yes, and that's why the $15/hour issue won't help. The corporate employees make well over that, and the single franchise owners cannot afford to lose any of their current 10% profit.
Yes, and that's why the $15/hour issue won't help. The corporate employees make well over that, and the single franchise owners cannot afford to lose any of their current 10% profit.
I believe labor only makes up 20% of their cost so while any increase would have some impact its not as impactful as many believe
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
