No one ever thought they'd close their doors, but prices will rise and employment rates at the fast food giant will suffer because of it. McDonald's will no longer be a place where career's start. They'll end there as well. Imagine, gold french fries on a gold chain after 20 years with the company.
http://www.zerohedge.com/news/2014-06-1 ... ung-peopleFive years of 2% average yearly GDP growth simply doesn't produce enough jobs to absorb the natural increase in the labor force, and over the past eight quarters GDP growth has averaged only 1.7%.
Nonetheless, various states and municipalities have increased their minimum wage, thereby increasing the cost of employing inexperienced workers.
ObamaCare gives businesses an incentive to either eliminate entry-level jobs or keep the workers' hours to under 30 a week.
>>>>>>>>>>>>>>>>>>>>>>>PhantomPhixer wrote:...... the working class will see no net change in spending power.
FiremanBob wrote:Here's the line that shows what manipulative BSers our "representatives" are:
"The Congressional Budget Office has estimated that raising the minimum wage could cost as many as half a million jobs, but raise 900,000 out of poverty. "
As to McD's CEO's comments, he is correct. Mickey will simply raise prices, as will all the other fast-food companies, because they all have the same cost structure. This will flow through in the general inflation rate as all prices rise. That's the short-term. McD's next move will be to install robots in the kitchen and self-serve kiosks in front for ordering, reducing their employment needs to the level of self-serve gas stations and airline check-ins.
If McDonald's just raised their costs voluntarily without a mandatory increase, they would just hurt their own bottom line. Their voluntary act of kindness by raising their wages would not generate enough positive PR and get enough public support for them to naturally walk away from the competition to eat at McDonald's.dusterdude wrote:Why change the law,just give their employess big raises and keep on truckin
My thought was that any short term purchasing power increase, or follow-on decrease as prices adjust themselves, would eventually result in a new equilibrium that is pretty much the same as the old equilibrium. The difference being, of course, that the jobless and retired slip further behind the curve. If inflation is the end result of 'monkeying with the system', then I agree with you.dorminWS wrote:>>>>>>>>>>>>>>>>>>>>>>>PhantomPhixer wrote:...... the working class will see no net change in spending power.
...higher wages will rise more than lower ones....as these higher wages spread upward in the wage scale and are reflected in the cost of goods and services, inflation will in fact reduce the purchasing power and erode the standard of living of the working class....
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>PhantomPhixer wrote: If inflation is the end result of 'monkeying with the system', then I agree with you.
>>>>>>>>>>>>>>>>>>>0ne5hot wrote:Most entry level EMTs get ~$10/hr, Why work a job with as high risk for debilitating back injuries as EMS when you can flip burgers for the same pay?
The cost of goods and services are partially determined by the costs of the inputs (wages and oil being two of them) and the quality of the currency (a gold standard vs fiat money). Of course having sound money could also lower the costs of the inputs to provide your goods or services, thus lowering your overall retail price which is why your family of four could easily be taken care of with one paltry salary in the 50s vs a single mother not being able to provide for herself and her baby today.Reverenddel wrote:The cost of things... does it really have to do with minimum wage, or oil, or the gold standard?
Two things: First, everyone should read "Basic Economics" by Thomas Sowell. Even the Rev's "idjuts" can understand it, I think. Second, everyone should start paying taxes out of their own paycheck. When they start having to physically open the checkbook, get the pen and write in the Pay to line "United States Treasury", they'll start paying attention. Until then, fuhgedaboutid.dusterdude wrote:All people care about when it comes to min wage is the dollar figure,they could care less about any economic issues involved
The banks figured out if it could work for the guvmint, why couldn't it work for them? Give the sheeple a way to spend without using paper and metal, and they'll spend more than they have. Charge them mobster interest rates and keep them beholden to the bank! What a concept!This very morning I did that (state too), ugh.Swampman wrote:dusterdude wrote:Second, everyone should start paying taxes out of their own paycheck. When they start having to physically open the checkbook, get the pen and write in the Pay to line "United States Treasury", they'll start paying attention. Until then, fuhgedaboutid.
