The "real" question that needs to be asked is: "When the $15/hour minimum wage is paid, what's the effect going to be upon consumers and workers?"
According to a Heritage Foundation study, the pay increase sounds good in theory to the sheeple polled, but will ultimately hurt both consumers and workers:
- Wages and payroll taxes constitute 26% of the typical fast food restaurant's sales.
- Food and other purchases comprise 31% of sales.
- Together, these two items constitute 57% of the budget.
- The average fast food cook makes $9.04/hour.
- A minimum wage of $15/hour would raise wages by 66%.
- A restaurant's total costs would increase by 15%.
That's the math. Now, here's what those simple facts would mean:
- Most restaurants operate at a 3% profit margin (that's 3 cents/$1 in sales).
- Absorbing the $15/hour minimum wage would decrease profits by 77%.
Now for the inevitable consequences:
- Restaurants would initially raise prices by 15% to absorb the wage increase. The average McDonalds "happy meal" would rise from $6.72 (the global average in USD) to $7.73.
- However, those higher prices will decrease sales and restaurants will have to raise their prices again, perhaps up to 38%. That "happy meal" would rise to $10.67.
- Obviously, many customers will seek alternatives and those on food stamps will need more food stamps to feed their families.
The grand outcome would be that owners of those fast food restaurants would reduce labor costs with automation, perhaps replacing workers with robots and automation. Some of this has already happened: Milk shakes used to be made by hand.
Now for the end of this story: Fewer jobs, increased unemployment, and union bosses and their thugs demanding an increase in federal unemployment benefits so their lemmings can continue paying dues and, yes, calling for another increase in the minimum wage.
The Heritage Foundation report warns Congress that supporting the effort to artificially inflate fast-food wages will force restaurants to comply with a wage mandate to raise prices, close franchises, or make labor changes by cutting jobs and, ultimately, hurting low-skilled workers.
Provide that 80% (or 100%) of the sheeple these facts before polling them and the poll results will be very different. But, the union bosses and thugs won't do that because, for them, it's certainly not about the consumers who those union bosses and thugs want to pay for the wage increase. And it's also not about the workers who will also lose. No, for those union bosses and their thugs, it's all about keeping the cash rolling into their coffers.
Let the discussion begin...
To read the Heritage Foundation report, click on the following link:
"Higher Fast-Food Wages: Higher Fast-Food Prices."