Poll: Most People Want County's Minimum Wage at $15.25 (credit, high school)

[RaymondChandlerLives]

Originally Posted by disgruntled la native

That's only a couple of fast food chains, probably the ones who are doing it on the lower end (the ones making a big price markup don't want to be interviewed for Michael Bloomberg's agenda). Even so, if this was representative, which I doubt it is, the increases add up over time.

Restaurants have to keep prices competitive to keep up with the big chains. They can't make huge price increases if they want to stay in business. Since wages only make up about 1/4 of their overhead, they don't really have to.

Someone mentioned Australia. Their min wage is 16/hr, yet the price of a Big Mac is 16 cents cheaper than it is here. As radio said, the $10 Big Mac theory is conservative spin, nothing more.

[disgruntled la native]

Originally Posted by RaymondChandlerLives

Restaurants have to keep prices competitive to keep up with the big chains. They can't make huge price increases if they want to stay in business. Since wages only make up about 1/4 of their overhead, they don't really have to.

Someone mentioned Australia. Their min wage is 16/hr, yet the price of a Big Mac is 16 cents cheaper than it is here. As radio said, the $10 Big Mac theory is conservative spin, nothing more.

Apples and oranges, australian dollars and economics have nothing to do with ours.

[PDF]

Originally Posted by disgruntled la native

apples and oranges, australian dollars and economics have nothing to do with ours.

That is so untrue.

[Exitus Acta Probat]

Question: Why can hourly wages for transitional level jobs not increase to $15 an hour without government intervention?

[RaymondChandlerLives]

Originally Posted by disgruntled la native

Apples and oranges, australian dollars and economics have nothing to do with ours.

Now you're just burying your head in the sand. The most extreme study I've seen has the price of a Big Mac rising 68 cents, roughly a 12% increase.

Price of Big Mac Could Rise by 68 Cents If Minimum Wage Doubles - ABC News

Morelix created financial models based on McDonald's annual reports and investor data. He estimated that paying workers $15 an hour could raise the price of a Big Mac to $4.67 from $3.99, as first reported by the*Huffington Post. A Big Mac meal would jump to $6.66 from $5.69, and McDonald's Dollar Menu would go to $1.17, Forbes reported.

That's on the high end of the scale. Most studies I've seen peg the increase at 27-35 cents.

[MordinSolus]

Originally Posted by Exitus Acta Probat

Question: Why can hourly wages for transitional level jobs not increase to $15 an hour without government intervention?

Because it's an employers job market. Employers don't have to pay better wages because workers have no bargaining power or leverage. This isn't like the post-WWII job market where we had a labor shortage.

[Tulemutt]

... And unions.

[RaymondChandlerLives]

Originally Posted by Exitus Acta Probat

Question: Why can hourly wages for transitional level jobs not increase to $15 an hour without government intervention?

No incentive. Corporations already have a large batch of useful dummies (right-wing voters) who champion their right to pay slave wages. These voters continually elect politicians who (because they're bought and paid for) automatically vote NO on any wage increases.

These same corporations can then turn around and encourage their employees to go on welfare, which they do. That's right folks, the American taxpayer ends up subsidizing our welfare queen corporations for the crap wages they pay.

As a bonus, since there's no need to recirculate these savings into the economy, CEOs use it fatten their wallets: CEO pay leaps to new record in 2013, AP study says - Fortune

[MordinSolus]

Originally Posted by Tulemutt

... And unions.

And unions what?

[StreetLegal]

Originally Posted by MordinSolus

And unions what?

I believe tulemutt meant that unionized workers were a much higher percentage of the workforce after WW II as compared to today. And that helped keep wages higher even for non-union workers.