Lets assume 15 dollars an hour happens

[Adam Jensen]

How will you have purchasing power if everything you want to purchase goes up in price?

This is more than a McDonald's issue.

Probably everything you consume is brought to you buy someone making less than $15 an hour. Not to mention the ripple effect of skilled and experience people demanding more money as well.

Cable bill will rise
Phone bill will rise
Rent will dramatically increase
Any consumer goods you purchase will increase
Gas prices will rise, which have already been shown to increase the price of everything, so another price hike on things already increased.

Because the prices that go up aren't equal to the increase of purchasing power. I stated that. If, for example, Walmart increased their minimum wage to 13.63 and wanted to pass that cost on to the consumers, a box of mack and cheese goes up by a few cents, whereas the employees gain about $5 an hour. That's a huge difference between the two.

[alexw]

lol

Okay. I am sure that will happen.

For fucks sake, people have little to no basis in reality when it comes to economics.

When Bush started his war in Iraq after 9/11, gas prices doubled. Immediately everything increased in price by a wide margin. Don't worry though, after we double people's hourly wage the effects will be negligible.

This post is hilarious! You criticize peoples understanding of economics on the minimum wage then jump to the doubling of gas prices. Do you even remotely understand why gas prices doubled? (hint supply didn't fall).

[Gilgemesh]

There will be a few months of prices not going up. But as more companies start giving their employees more money, the cost of everything will go up.
Nearly every time this happens, the cost of living goes up more than the wage increase does. Doubly so in areas that are already above 15 an hour. The places that are paying 16 or 17 or even 20 dollars an hour now will have a hard time giving their employees 7.75 more an hour to compensate skilled workers for their skill. This is basically dropping middle class income to low class income. The cost of living will increase in middle class areas the most. Not only does this wage increase threaten those already making around that wage, it also threatens people looking for bottom-end jobs. More money means companies will find ways to shift more responsibility to the lower levels, as to help offset the cost of wages. This then means a demand for more skilled workers in bottom level positions, making people new to the job market or changing careers even less valuable.
A couple months of poor people living better isn't going to fix anything.

[Chrysia]

There will be a few months of prices not going up. But as more companies start giving their employees more money, the cost of everything will go up.
Nearly every time this happens, the cost of living goes up more than the wage increase does. Doubly so in areas that are already above 15 an hour. The places that are paying 16 or 17 or even 20 dollars an hour now will have a hard time giving their employees 7.75 more an hour to compensate skilled workers for their skill. This is basically dropping middle class income to low class income. The cost of living will increase in middle class areas the most. Not only does this wage increase threaten those already making around that wage, it also threatens people looking for bottom-end jobs. More money means companies will find ways to shift more responsibility to the lower levels, as to help offset the cost of wages. This then means a demand for more skilled workers in bottom level positions, making people new to the job market or changing careers even less valuable.
A couple months of poor people living better isn't going to fix anything.

No, no this is not historically what has happened. Raising the minimum wage has not historically driven inflation to statistically significant amounts. The cost of living is already increasing without the accompanying wage increases.

[gr4vitas]

Aren't you still making your so call $19/hr? So now you are just pissed that someone is making almost as much as you by percentage? What is the problem.

Again I don't know you whole life and this being the internet I'm sure I would not get the whole story.

Are you fucking shitting me? Did you read any of my other responses? I'd be pissed because I spend $50,000 on an education and worked my ass off to work in the engineering field. If any old pleb can make 75% of what I'm making flipping burgers then why the fuck would I put in all the time, effort, and money into bettering my self through education and a general pursuit of knowledge.

It would seriously hinder (if all other wages stayed the same) the drive for young individuals to go out and get an education, or learn a trade. Which is what we need right now, tradesmen and intellectuals.

[Vash The Stampede]

Exactly how much would the price of a McDonald's hamburger cost?

#1 The price of products aren't set by cost, but by what consumers are willing to pay and competition. The iPhone 6 costs $200.10 to make, but you don't pay $300 or $400, but closer to $600. How much you think it costs to put a burger together?

#2 Even if McDonald's increases the price of their hamburger, they still have to contend with other markets. Like the supermarket where you can buy the meat patties and make your own burger.

#3 Why you making a burger? Go to the fruit market and buy vegetables and make a salad. Why you eating this crap, don't you know it gives you cancer?

[wheresmywoft]

I never understand this logic.

Any business man, unless they are some super SJW, will see the hit in how much they make and take steps to fix that.

No intelligent person will just be like "Oh, I will just make less money to pay my low skilled, EASILY replaced workers more."

Business is about making money. That is the bottom line.

So you acknowledge that the majority of the change in price is NOT from the raise in minimum wage. But from the business owner who wants to maintain a high margin.

Yet you still blame the minimum wage.

[wheresmywoft]

there is nothing but money and time keeping me from becoming a doctor. both of those are things that I chose not to spend in seeking that.


I CHOSE not to. Just as anyone who gets locked into a fast food franchise job chooses to.

... You openly admitted that you found it hard at $17/hr. Yet you cannot see that money is the exact gate that we've identified?

[Paranoid Android]

Are you fucking shitting me? Did you read any of my other responses? I'd be pissed because I spend $50,000 on an education and worked my ass off to work in the engineering field. If any old pleb can make 75% of what I'm making flipping burgers then why the fuck would I put in all the time, effort, and money into bettering my self through education and a general pursuit of knowledge.

It would seriously hinder (if all other wages stayed the same) the drive for young individuals to go out and get an education, or learn a trade. Which is what we need right now, tradesmen and intellectuals.

Caught you!! Know you are engineer making $19/hr. You seem to be in the wrong job then. Average starting salary is $55k plus. Anymore bs you need to make up to support your narrative?

[Cricket22]

Because despite popular opinion, many people don't settle making just the bare minimum. The problem with the current minimum wage is that it's helping create a cycle of poverty and inhibits growth.

People would still take that job because it pays significantly more and thus allow a ton more luxury purchases.

Those high paying, dangerous construction jobs are still available. In my western Chicago suburb, they're also having difficulty filling vacancies for police officers -- even though the starting pay is $85,000/year. Only requirements are passing a civil servant test and the physical.

Back when minimum wage was instituted, computers hadn't been invented, most people didn't even own a phone, vehicle, much less a TV, washing machine or the many other luxuries people now not only consider a necessity, but actually regard as an "entitlement".

There was an old campaign slogan that basically defined a living wage as being able to have "a chicken in every pot". That's all.

[Fugus]

Its completely viable.... because jobs do exist out there. If 100% of jobs were taken, you'd be correct though.

No its not. And you don't know what 100% employment means I take it.

[alexkeren]

Because the prices that go up aren't equal to the increase of purchasing power. I stated that. If, for example, Walmart increased their minimum wage to 13.63 and wanted to pass that cost on to the consumers, a box of mack and cheese goes up by a few cents, whereas the employees gain about $5 an hour. That's a huge difference between the two.

But raising the minimum wage for EVERYONE is not the same as ONE company like Walmart or McDonalds raising their wages internally only.

Again, look at all the jobs between the farmers/ranchers and Walmart or McDonalds and factor in each level being forced to raise minimum wage. A few cents increase in gas the farmer/rancher pays, the delivery companies, etc. The increase in wages they each pay, etc, and suddenly you realize the costs start shooting up LONG BEFORE Walmart or McDonalds.

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20 workers with a $7.5 go to $15 = $150
1 CEO $1000 = $1000

yeah that changes much
Okay there is not a ceo for every 20 workers but you get the idea

Your example still leaves out the various levels between farmers/ranchers and McDonalds and how costs go up at each level.

You also compared a salaried position to an hourly position which also doesn't work.

[Chrysia]

But raising the minimum wage for EVERYONE is not the same as ONE company like Walmart or McDonalds raising their wages internally only.

Again, look at all the jobs between the farmers/ranchers and Walmart or McDonalds and factor in each level being forced to raise minimum wage. A few cents increase in gas the farmer/rancher pays, the delivery companies, etc. The increase in wages they each pay, etc, and suddenly you realize the costs start shooting up LONG BEFORE Walmart or McDonalds.

Except we've raised the minimum wage before and each and every time purchasing power increases more than costs do. Costs are already rising, without purchasing power rising, and it's hurting the economy.

[Deleted]

Why are they not allowed to make that much money? You do realize how extremely hard the average CEO works, right?

And those idiots at the top are the reason why a large majority of people have jobs. They took the steps to succeed. They should be rewarded.

We should encourage success.

You are assuming there is a direct correlation between hard work, success and financial renumeration. The correlation is so weak it barely exists..

[alexkeren]

I 100% agree with you, never understood why a person bringing my food deserves extra money than a person who is making my food.

Because the server is the person who makes your experience good or bad, unless you're at a Teppanyaki House. It's much easier to work in the back of the house than the front.

[Gilgemesh]

You would agree that the cost of living has increased since 2009 right? You also agree the cost of living will continue to increase if the minimum wage stays at $7.25?

So at what point does paying people so little cause our economy to stagnate? What happens when the average consumer almost no excess spending power? You seem to think we aren't their yet, but looking at buying power of the average worker of the past 50 years it would seem we are on the downward trajectory. Despite the minimum wage not holding with inflation.

I'm not against people making more money. I agree that everyone that works 30+ hours a week should be able to survive. I just see companies using this as an excuse to raise prices to match. I also don't see the 15-20 dollar an hour workers getting raises to help offset the cost of living increases they will see.

There is data supporting nearly every viewpoint. Costs will go up. How much depends on what people will pay, and with lots of extra money flooding the market, I see costs rising much more than the last minimum wage hike.

[Deleted]

Not really. Automation is going after higher paying jobs right now. More potential to cut costs since a lot of initial market testing has shown customers largely have mixed reactions to automated customer service jobs, which are at or just above min wage.

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So you believe it would what, triple in cost?

They have mixed feelings because it is new.

It's the same bullshit with idiots saying "I want to press real buttons on my phone" when touchscreens came out or people saying "Nothing beats feeling and smelling a new book to get the full expirience" when asked why they won't try Ebooks on good Ereaders.

Idiots don't like change even if it would change their lives for the better.

[Zoldor]

If it increases it will be marginal. I see some of you don't understand the concept of a mega corporate business. For them the quantity of sales is more valuable than the price of sales. Hence why they can sell you a cheeseburger for 99 cents. The food only has to be marginally profitable, because they are moving billions of units. This isn't a small business or a local chain where 30% minimum mark up is required just to survive. McDonald's, like Budwieser, and lots of other companies can make a few cents per unit if even and still come out drastically successful.

They would never look to upset the market by increasing prices in any drastic fashion it would be way more detrimental to them, instead their goal will be to sell more products and reduce staff numbers down not by much, hope to retain staff for longer periods (which they don't care about now because their turnover actually allows them to get kick backs for the number of employees they hire), reduce the number of raises given, and possibly have more fulltime employees than part time (that is a big stretch and would require some serious number crunching to figure out).

[Deleted]

Because the server is the person who makes your experience good or bad, unless you're at a Teppanyaki House. It's much easier to work in the back of the house than the front.

Because a good expirience means they will service me with common decency. You shouldn't earn (extra) money for not being an ass.

[wheresmywoft]

Your forgetting that taxes are also significantly higher in those countries, so the 'higher wages' really aren't any higher. It's the same as if everyones wages go up 10% then bernie taxes everyone at 10% more. Just means the gov. gets more money from business'.

You're forgetting the services that they receive for that. So in the end, more of their take home pay is actual disposable income.