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KamaAina

(78,249 posts)
Fri Aug 2, 2013, 05:31 PM Aug 2013

This Is What Would Happen If Fast-Food Workers Got Raises

http://www.businessweek.com/articles/2013-08-02/this-is-what-would-happen-if-fast-food-workers-got-raises

Even McDonald’s (MCD) own hypothetical household budget (pdf) for its restaurant employees seems to suggest it’s difficult, at best, for many in its low-wage workforce to make ends meet. And all this week thousands of fast-food workers at many of the biggest U.S. restaurant chains have staged short-term walkouts in seven cities: New York, Chicago, St. Louis, Detroit, Milwaukee, Kansas City, Mo., and Flint, Mich. The workers are demanding a pay raise to $15 an hour, compared with current average wages across the industry that are closer to the federal minimum wage of $7.25. President Obama has proposed raising the lowest wages to $9 an hour, which would be a 24 percent jump over the minimum wage.

Food-service workers are among the lowest paid in the country. Here’s what Payscale.com data, based on about 3,000 employee surveys, show about how much workers are making at the country’s 10 biggest fast-food chains compared with workers in other fields. Not all the chains listed here are facing protests this week—they are instead being highlighted for the size of their workforces:




So how much could restaurant chains stand to increase their wages before profits evaporate? It’s a complicated question. Based on years of research, some economists are now advocating a minimum wage of $10.50 (PDF), which they claim would increase a chain’s costs by only 2.7 percent. Roughly half of food-service workers currently make less than that proposed $10.50 rate, so not everyone would be affected. The companies could make up the difference through a combination of price increases—say, a nickel more for a burger—reduced turnover, productivity gains, and “a slightly more equal distribution of companies’ total revenues,” which is a nice way of saying the highest-paid employees would see their incomes increase more slowly, explains Jeannette Wicks-Lim, an economist at the University of Massachusetts Amherst and one of the signees of the petition.
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This Is What Would Happen If Fast-Food Workers Got Raises (Original Post) KamaAina Aug 2013 OP
K&R MotherPetrie Aug 2013 #1
k&r thanks for posting. nm rhett o rick Aug 2013 #2
$10.50 is crap. One of the problems with our economy today is the enormous chasm between liberal_at_heart Aug 2013 #3
It's a start KamaAina Aug 2013 #4
It's not a start. Democrats have been adding nickles and dimes to the minimum wage for decades. liberal_at_heart Aug 2013 #5
7.25 to 10.50 isn't nickels and dimes. KamaAina Aug 2013 #6
that would not keep up with inflation. We are too far behind the curve. We need courageous liberal_at_heart Aug 2013 #7
+100 truebluegreen Aug 2013 #8
There is an opprutunity for common ground with old-school conservatives here Mopar151 Aug 2013 #9
Walmart always gets singled out for that KamaAina Aug 2013 #14
Ain't just Wallyworld and Mickydeez, either. Mopar151 Aug 2013 #16
I would gladly pay more if they could get a raise KrazyinKS Aug 2013 #10
This message was self-deleted by its author Adam051188 Aug 2013 #11
Lower wage workers don't do a whole lot of consumption. hunter Aug 2013 #13
What would happen? Everyone's standard of living would improve. hunter Aug 2013 #12
This conversation happened today taught_me_patience Aug 2013 #15
It's because you are in an affluent area Mopar151 Aug 2013 #17
oh yes DonCoquixote Aug 2013 #18
It is the same everywhere Lee-Lee Aug 2013 #19

liberal_at_heart

(12,081 posts)
3. $10.50 is crap. One of the problems with our economy today is the enormous chasm between
Fri Aug 2, 2013, 06:31 PM
Aug 2013

profits and wages. To say that wages above $10.50 would make profits evaporate is disingenuous. CEOs earn almost 400 times the amount the average workers do. They can't convince me that they can't pay $15/hour and not still have money in their pocket.

 

KamaAina

(78,249 posts)
4. It's a start
Fri Aug 2, 2013, 06:34 PM
Aug 2013

I got hammered the other day for suggesting that $15 is a worthwhile goal five years down the road, just not right now. For one thing, the big chains like McD's would be in a better position to pay it than mom 'n' pops.

liberal_at_heart

(12,081 posts)
5. It's not a start. Democrats have been adding nickles and dimes to the minimum wage for decades.
Fri Aug 2, 2013, 06:38 PM
Aug 2013

And yet the wage gap just keeps getting worse and worse. More and more people are living in poverty. No, nickles and dimes are no longer good enough. We need a living wage.

 

KamaAina

(78,249 posts)
6. 7.25 to 10.50 isn't nickels and dimes.
Fri Aug 2, 2013, 06:44 PM
Aug 2013

Even Obama's proposal of 9.00 is more than we've seen in a while. You're right, though: it's still not enough. What we need is a firm timetable: 9.00 now, 10.50 in two years, 12.00 in three, 15.00 in five.

liberal_at_heart

(12,081 posts)
7. that would not keep up with inflation. We are too far behind the curve. We need courageous
Fri Aug 2, 2013, 06:52 PM
Aug 2013

politicians(yes I realize that is an oxymoron) who will fight for a living wage now.

Mopar151

(9,986 posts)
9. There is an opprutunity for common ground with old-school conservatives here
Fri Aug 2, 2013, 08:07 PM
Aug 2013

The amount of cost shifting from McJobs to anti-poverty programs supported by the taxpayers (who are increasingly wage earners themselves) is absolutely scandalous.
Good Gawd - what does it cost us to keep an eye on everybody that's on public releif, that could make it if they were paid a living wage? How much better could the caseworkers do, if a big bunch of their clients get a raise in their circumstances.
I hear New Zeland does this, I hear it works pretty good.......

 

KamaAina

(78,249 posts)
14. Walmart always gets singled out for that
Fri Aug 2, 2013, 11:46 PM
Aug 2013

How many McD's employees are on Medicaid? Or SNAP (food stamps)?

Mopar151

(9,986 posts)
16. Ain't just Wallyworld and Mickydeez, either.
Sat Aug 3, 2013, 03:44 AM
Aug 2013

There's a whold universe of good people out there toiling for shit money - trashmen, tire busters, cashiers, landscapers, clerks and aides. Mitt Rommney called us "takers". It's more like "The Taken".

KrazyinKS

(291 posts)
10. I would gladly pay more if they could get a raise
Fri Aug 2, 2013, 08:21 PM
Aug 2013

I heard on the radio about some research done at KU about the minimal price hikes that would occur if the workers got a raise. I was stunned. We are arguing over this? I do estate sales and it stuns me. They get pissed, over a quarter!

Response to KamaAina (Original post)

hunter

(38,317 posts)
13. Lower wage workers don't do a whole lot of consumption.
Fri Aug 2, 2013, 09:22 PM
Aug 2013

With more money maybe they eat a little better and get a bad tooth looked at by a dentist.

I'm a Luddite. In my utopia few people owns cars, people work thirty hours a week with a single six week vacation every year, multiple shorter vacations, and year long vacations every decade or so. Most people in my utopia are artists of some sort, artists with "day jobs." Some people are artists in their work too, but most people define themselves by their art, not by their day job. When someone says "I'm a painter" they mean like Bob Ross, not like someone who paints houses, though painting houses may be their art too.

In my utopia the "Economic Productivity" as we now measure it is universally seen as a bad thing.

A functional society provides everyone good food, shelters everyone in a safe comfortable place, educates everyone, provides adequate medical care and justice for all. The USA is not a functional society.

hunter

(38,317 posts)
12. What would happen? Everyone's standard of living would improve.
Fri Aug 2, 2013, 08:39 PM
Aug 2013

They'd spend this money in the community.

Instead the fruits of their labor are siphoned off as corporate profits for wealthy people to play with on Wall Street and other international casinos.

 

taught_me_patience

(5,477 posts)
15. This conversation happened today
Sat Aug 3, 2013, 12:04 AM
Aug 2013

customer: How much for a large coffee
me: three dollars
customer: THREE DOLLARS?
me: It's specialty coffee roasted here in Long Beach
customer: ridiculous [walks out]

I pay my top baristas $15/hr, and serve extremely craft coffee... people complain about the price nearly every day. Meanwhile, I haven't had a paycheck in over seven months... all the money goes into the coffee and employees. The coffee shop is in a very affluent area. Most people across America will NOT pay for better quality product or service. Sad fact but true.

Mopar151

(9,986 posts)
17. It's because you are in an affluent area
Sat Aug 3, 2013, 04:07 AM
Aug 2013

A lot of the wanna-be-rich crowd are terrible chiselers. Your prices are not that much higher than Dunkie's on the East Coast.

 

Lee-Lee

(6,324 posts)
19. It is the same everywhere
Sat Aug 3, 2013, 05:56 AM
Aug 2013

People talk a big game about supporting US workers, right until it comes time to actually do it and spend a few dollars extra.

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