Well, kind of hard to make the argument that the McDonald's employee is only worth his minimum wage, or even less than fifteen dollars an hour, when his employer is sending up to corporate twice the cost of labor in the form or royalties and service fees.
Again, my position is produce fifteen dollars an hour worth worth of value or stay home. I am calling McDonald's and other corporations bluff. If they have to shut down because they can't turn a profit paying people at least fifteen dollars an hour. GOOD. If everyone has to pay a little more for a burger, perhaps one a little better for them. If everyone has to pay a little more for their toilet paper because Walmart closed. GOOD. Because in the end, the benefit to society of them no longer operating will be far greater than any benefit we have for them operating now.
If it's that much $$, then McDonald's wouldn't be able to get franchisee's anymore, oh wait, they have plenty of people lining up....
No, you don't want to shut down the system, you want government to do your dirty work for you, lazy bastard.
Go out and do something about it, Mr. Armchair anarchist.
Poseur.
Does not matter if they have people lined up to be franchisee's. The franchisee's are making money. And you don't have to get all tore up if you don't understand.
Look. Minimum wage is an artificial floor. Because of this artificial floor, franchisee's can pay employees significantly less than the value of their production. The difference between the amount the employee would be paid in a fair "free" market where he has equal power, there is equal consideration, and the labor market is functioning without a dysfunctional minimal wage floor, and what he is currently paid is economic rent.
My entrance in to this thread is that the franchisee, the one putting up the capital and taking the risk, is not collecting this economic rent. It is passed up to corporate McDonald's in the form of fees and expenses. Therefore, the owner can no more afford a capital expansion into automation than he can afford fifteen dollars an hour cashiers.
The point is the problem is not the franchisee. The problem is not the employee's lack of skills or productivity, the problem is not even automation replacing jobs. The problem is a system that allows McDonalds, the franchise, to extract that economic rent. Part of that problem, and only a small part, is a minimum wage that no longer serves it's purpose because it does not reflect a minimum social value of a working individual.
They are buying the brand name and all the advertising power and recognition that comes with it. it's part of the package. They could open up their own no name burger joint, but they don't. That's the pact they make with McDonald's corporate. Don't go rambling about "economic rent", that is just an excuse people who are lazy and feckless use to get free crap from others.
The real problem is people think they can make an entry level McDonald's job a career that allows for a family and a life of some type of leisure. That is the real crock here.
No, economic rent is very real.
Say we build a factory. You will probably say it takes two components, labor and capital. But it is labor, capital, and land. So--the capital, that is the "owner". He builds the factory, he hires the workers, he buys the materials. He fails, he loses his money, his "capital". He walks away with nothing but the experience. The workers he hires, they are the labor, they increase the value of materials by producing his product. The business fails, he is unemployed. He walks away with nothing but the experience. Now you got the land owner. He puts up nothing. He risks nothing. He produces nothing. He collects RENT. And if the business fails, he is still there, and so is the land.
In the McDonalds situation, McDonald's puts up nothing except the system (I will give you advertising), they risk nothing except what little effect that single franchisee could do to their "goodwill" before they can shut him down. And if the franchisee fails, McDonalds will still be there, and so will their system. They are collecting economic rent.
Now, you don't even want to get me started on what collecting of economic rent causes. Considering the concept comes out of the last of the 19th century, it is almost scary as to how accurate those predictions were.