Canon Shooter
Diamond Member
- Jan 7, 2020
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McDonalds has a net profit margin of over 25 %. This is way above average. So they are cashing in on the misery of their employees. Easy to understand.Then McDonalds should not raise the prices?He just has to sell three BigMacs per hour to get the money for his wage. He is selling way more.If everyone gets more cash, where is the problem? High wages are what made your economy strong.After all that fat cat socialism under the Blob, Biden has some real useful present for the populace: An increase of the federal minimum wage by more than 100 %.
Biden minimum wage proposal could lift more than 1 million workers out of poverty
Federal minimum wage has been frozen at $7.25 for more than a decade, the longest period without a raise since 1938.www.cbsnews.com
All that means is that a lot of kids will be losing their jobs, while everyone else will demand a raise of $3-$8 dollars to stay proportionally ahead of minimum wage.
Or are you that stupid to think skilled people making $16.00 an hour and with lots of responsibility won't mind suddenly finding kids flipping burgers at Wendy's making as much as them?
Prepare for the cost of EVERYTHING to go up.
If everyone gets more cash, then you have a zero sum gain. Wages go up for all but so do prices. End result is nothing gained. You are no farther ahead. An unskilled worker is only worth as much as the value of what they produce, and they can make hamburgers and shakes with robots and machines.
If as burger cook is worth $15.hr, that in effect devalues the dollar and will raise prices on everything.
He just has to sell three BigMacs per hour to get the money for his wage.
What are the inputs needed to make a Big Mac, besides labor?
He is selling way more.
He's probably selling way fewer at the new, higher price.
What part of this can you not possibly get? This is a 6th grade problem. To pay an employee $8.50 (min wage), McDeath has to charge about $9.00 for a BigMac, L Fries & Shake. Now what happens if he pays his employees $15/hr? He'll have to cut several jobs and make the others work harder (making it harder to get and keep employees further raising his cost), or RAISE PRICES a lot.
Now that $9 meal costs maybe $15. But no one else's wages have gone up so people buy less. Those who buy the $15 meal, now THEIR cost of living has gone up, so now it is like they are making LESS. Then sales go down and the store has to either go out of business or cut staff further, reduce wages (whoops, can't do that), or INVEST IN AUTOMATION TO REPLACE PEOPLE and people lose jobs.
Either way, you can't FORCE the free market with government intervention otherwise, it is no longer free.
A McDonald's Quarter Pounder with cheese has a menu cost of $3.79. They've got those now, though, as a part of their "2 for $4" promotion. They can do that because the actual cost of that burger to a franchisee is only around $1.05. If he sells two of them at the normal price he's making a profit of $5.48. By sellinig them at two for $4, he's making a profit of $1.90, while at the same time offering what the customer sees as a great deal.
None of those are a 25% profit margin. A medium soft drink at McDonald's has a profit margin of around 90%. An order of large fries? That's got a profit margin of around 85%.
Your posting history in this thread makes it pretty clear that you don't really know the first thing about what you're talking about. You'd likely fare far better if you educated yourself a bit...