Fast Food Worker Strikes!

[Coito ergo sum]

If McDonalds had to pay $15 an hour, they'd be a lot pickier about who they did hire. I bet a great many current employees would be let go and replaced with those worth $15 an hour. Illegal immigrants, school dropouts, and ex-cons would be the first to go.

$30k a year would get a lot of college graduates clamoring for jobs to hand out hamburgers to people in cars.

[pErvinalia]

Only if there weren't jobs that involved using their minds.

[Coito ergo sum]

Because if they are pressured into raising prices, people may decide that there are tastier/healthier options in the new price range.

Or, they won't be able to afford the new price range.

[Coito ergo sum]

That being said, raising the minimum wage would put stores like McDonald's under economic pressure to automate in order to reduce the cost of burgers. They would find ways to do the same job with fewer employees, if possible.

1. How is this different from the present?

Wages are cheaper now than if they double the minimum wage. Doubling minimum wage would also cause those who are working more complex jobs and management positions pissed off that they are being paid the same as the floor sweeper and person handing out fries. So, not only would the minimum wages go up, but unless wages for all pay grades at McDonalds are adjusted up, there would be a flattening out of the wage scale -- i.e. more and more people would be making the same money regardless of the difficulty, complexity or responsibility associated with the job.

The higher the labor costs, the more pressure exists to eliminate those costs.

2. How is McDonald's under economic pressure to sell burgers as cheaply as they can? I would think they are under economic pressure to sell burgers for the maximum the market will bear.

Supply and demand. People are only willing to pay so much for hamburgers. They aren't trying to sell hamburgers as cheaply as they can. They are trying to sell hamburgers as profitably as they can. If they can raise the price and sell the same number of burgers, they would. They are best served by selling burgers at the price point which maximizes profit, not price. As price goes up, demand goes down, and they sell fewer burgers. They could price the burgers at $1,000,000 each, but they won't sell any. They could sell them for a 1 cent profit margin, and sell a lot more burgers. The point they try to pick, however, is the one that maximizes the product of number of units sold and profit margin.

[Coito ergo sum]

Yeah but, you have to pay these guys that much; otherwise who'd do the creating and stuff?

That all looks great. When I worked for a huge corporation back in "the day" I always wanted it to be profitable. A profitable company doesn't guarantee that a given employee will be financially successful there, but an unprofitable company guarantees they won't.

[Coito ergo sum]

I hope the strike is successful.

It will surprise people who are sure they know how I think to know that I agree with you wholeheartedly. I agree that I hope it motivates McDonald's to increase wages. That would mean that the workers won the negotiations. That would be great. And walking out and speaking their minds are two pieces of ammunition. I used the walk out myself in my life. It has worked to get me a raise -- "boss, I really need more money or I am leaving." And, it has also not worked, as the employer was unwilling to give me the wages I wanted. So, my bluff was called. Luckily, I don't bluff in those situations. I don't make those threats without other opportunities available.

If this works for them, then great. They are under no obligation to be silent or to accept their station.

I haven't worked for minimum wage since I was 16 or 17 years old, though, and I don't understand why anyone would. There are so many other opportunities that could make more money. I remember being 16 years old and making $3.35 an hour. I worked hard, of course, and after 60 or 90 days I received a 50 cent pay increase and after 6 months I received another 50 cents. That's all chump change, of course, even then. And, I was only happy about it in that I could use them as a reference or point to those raises as a reason other employers could trust me to actually work. But, after about 6-9 months of that, I found myself a job paying $9 an hour, and I never looked back at minimum wage. I also tended to show up a few minutes early for work, leave a few minutes late, work during work time, and I would affirmatively ask my bosses for more work if I didn't have much to do. I also didn't piss and moan, leave them hanging by being absent often, etc.

[Tyrannical]

Welfare allows artificially low wages because it becomes a corporate wage subsidy.

What companies really think

Why should I pay more than $8 an hour? They can collect food stamps and housing subsidies (paid for by corporate taxes) so they don't need the money.

[Coito ergo sum]

They are extremely profitable and still would be if they paid their staff a living wage. It is just pure greed.

The problem with this statement is that it treats employers as if they're not regular people. It's no more greedy than paying $499 for this flat screen 50" LCD television -- http://www.bhphotovideo.com/bnh/control ... &A=details instead of voluntarily paying $998 for it. It's just like saying the company selling that t.v. for $499 is greedy for not selling it for $399.

If a lawn maintenance person offers to mow your yard for $25, are you greedy for not paying him $50?

[Tyrannical]

Ten percent of corporate taxes collected shall be distributed to lower wage workers.
Problem solved

[pErvinalia]

I haven't worked for minimum wage since I was 16 or 17 years old, though, and I don't understand why anyone would. There are so many other opportunities that could make more money.

Are there? Your unemployment levels are quite high, and your youth unemployment is very high.

[laklak]

If a lawn maintenance person offers to mow your yard for $25, are you greedy for not paying him $50?

Fuck CES, if you've got a $25 yard man send his ass my way.

The problem with any minimum wage is the lower orders start believing they're owed more than gruel and hardtack. Nothing good can come of it, mark my words.

[Clinton Huxley]

Under CESonomics, everyone becomes a millionaire mowing everyone else's lawn.

[laklak]

There should be a separate currency for those of unfortunate social station, with an exchange rate of 1000/1 against the dollar. That way they can all be millionaires if they work hard and save their money.

[Coito ergo sum]

Only if there weren't jobs that involved using their minds.

Plenty of college graduates would prefer an easy, menial job to one that required effort and mental energy, particularly if the pay is the same, and particularly if it's difficult for college graduates to get jobs -- which it is. Many would say -- at least I can make $30k easy.

[Coito ergo sum]

If a lawn maintenance person offers to mow your yard for $25, are you greedy for not paying him $50?

Fuck CES, if you've got a $25 yard man send his ass my way.

Yes, actually. He charges that price for "cash" only. Cuts the yard, edges around the house, and trims my hedges. But, I have a rather modest size yard (by Merkin standards). Very easy and quick to do.