Elizabeth Warren addresses raising the minimum wage and its effects. (companies, Walmart)
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No she doesn't. She picks out McD's and they have a 20% profit margin, but most restaurants have profit margins in the single digit range. Grocery stores have about a 1% profit margin and they are already automating instead of hiring people to start at min wage.
No, she doesn't make sense with her argument. The reason is that she's applying McDonalds to another restaurant. She simply takes the average price a $7 meal would rise at McDonalds and doubles it for the other restaurant's $14 meal. But what this does not address is the amount of sales an employee generates. If the McDonalds employee sells 3 of those $7 meals per hour while the other retaurant's employee only sells 2 of their $14 meals per hour then then you can't simply double the prince increase of the McDonalds meal and apply it to the other restaurant. You must consider volume.
Liberals always go towards the giant corporations that pay thousands of employees little money. This makes for good rhetoric. But the fact is that most people aren't employed by giant corporations. Most people are employed by small businesses. Those businesses don't have nearly the revenue of the giant corporations.
No she doesn't. She picks out McD's and they have a 20% profit margin, but most restaurants have profit margins in the single digit range. Grocery stores have about a 1% profit margin and they are already automating instead of hiring people to start at min wage.
There is not one business that can survive on a 1% profit margin.
Show me an example of a grocery store large or small that can survive on a 2% profit margin. Why would you even think of going into business for a 2% profit margin unless you have a low regard for money.
High competition, low barriers to entry, commoditized product = low margins, indeed often around 2% for companies like safe co, etc. high volumes help to offset low margins. You can only charge so much for a bottle of ketchup.
Quote:
Originally Posted by Goodnight
Show me an example of a grocery store large or small that can survive on a 2% profit margin. Why would you even think of going into business for a 2% profit margin unless you have a low regard for money.
Show me an example of a grocery store large or small that can survive on a 2% profit margin. Why would you even think of going into business for a 2% profit margin unless you have a low regard for money.
Why do you think people aren't opening up grocery stores?
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