Analyzing A Practical Minimum Wage

Ironic or just a coincidence that McD's is investing in, and using this market as the test bed for reshaping their future. In Australia, their workers make at least DOUBLE what they are typically paid here in the US for front line jobs. Not only is the price of the Big Mac still the same, within a few pennies, but apparently profits are so good they can invest in this innovation there, rather then here in the US.


This trendy new inner-city cafe is actually a MCDONALD S Fast-food giant continues curious gourmet overhaul with drastically re-branded McCafe in Sydney Daily Mail Online

Cost of living in Australia is unbelievably high! Movie tickets - $25 US. I complain about $12 here. But their costs are higher across the board! Middle class families pay for nannies for assistance from all over the world - the U.S. in particular - because daycare costs are so high! They had rather transport, board, and salary a nanny than use daycare. Why? Because it is cost effective!

I cannot believe such ignorance such as your post has received so many comments.... Perhaps because it is so outlandishly ridiculous? Easy target? I have no idea....

Cost of living shifts from town to town and city to city. But the fact remains that McD's pays DOUBLE what they do in the States, but still sell their product at the same price.

So if your cost of living is really that high down under, then McD's is only that much more of a bargain when you need to eat.
 
So Jack tell me if i own a sandwich shop that employs 5 full time people at 7.50 an hour and my annual labor costs (let's leave out payroll taxes, unemployment taxes workers' comp and all those other expenses for now) then my annual cost for that wage is 78K a year.

If I triple that my labor costs would be 234K a year.

So tell me where does the extra 156K a year come from if I don't raise my prices?

No one said anything about tripling wages.

But to answer your question, the money comes from increased sales.
Excuse me but if you want the MW to be 25 an hour then yes we are talking about a lot of wages being tripled

And how do you know my sales will increase if I pay my people more?

Here's another question. If the rise in labor costs results in each sandwich being sold at a loss does it matter how many I sell?
 
And you also can't seem to realize that stores where the MW is higher are most likely less profitable because the labor costs are eating into the bottom line

And you don't understand that I am talking about a national standard, not local markets. This is exactly why I can't raise my own wages, without wages being raised across the board. So now that you understand that concept, you can stop trolling me on that point.

Sorry but you said labor costs do not effect product price and that has been your mantra this entire thread. Companies with higher labor costs than others all other things being equal make less profit.

If labor costs go up and prices do not rise then profit decreases.

If everyone's labor costs go up then all the products they sell will rise in price.

You cannot sit there and tell me that tripling the minimum wage will not cause price hikes.

You are using data for comparatively miniscule MW increases of the past and you think that the results will apply no matter how high you raise the MW.
 

New Topics

Forum List

Back
Top