Originally Posted By: Daye

Let's say the wage increases. Now McCorporation has to decide
how much of a hit to profits they want to absorb and how much to
pass on to the end customer.


Lets say 100% of minimum wages increase is passed onto consumers. Employment costs in the fast food industry are marginal, so you will never get "double the price" even if you double the minimum wage. Do you think 25c more per burger for paying 12$/hour (it is more like 2-3c per extra $/hour if cost-structure is similar to pizzas) is too much to pay living wage? In other words, are societal benefits of marginal price cuts justify social ills such cuts create?

I don't sometimes understand conservatives. Henry Ford had it right - you pay your workers enough so they can buy your product. Squeezing marginal profit increases out of suppressing minimal wages is social equivalent of toxic waste dumping - it creates a lot of problems downstream.

Let me put it another way that you could probably understand - it is more effective to pay more people who work, then to pay into welfare system that has people that don't work in it.

Last edited by sini; 02/21/13 06:12 PM.
[Linked Image]