California's $20 Minimum Wage Will Hurt the Fast Food Workers It's Meant to Help i said this when this idea first came up.if you increase operational costs in a business, there are really 2 ways to offset them, either raise prices and run the risk of driving off customers and hurting the business more, or cut costs, ie in labor mostly.so those who thought they were getting more money via this will see some lose their jobs and/or hours cut to reduce the bottom line. of course the libbies don't see it that way, and besides, are they going to pay the unemployement benefits to those affected, maybe, maybe not.automation here we come, even more jobs lost due to the libbies being stuck in the 1960's train of thought.
Record corporate profits are no big deal but wage increases are a disaster says those who get corporate profits and pay wages. News at 11.
From the story: "The economic literature on minimum wage increases has become murkier in recent years, but the overwhelming majority of economists agree that large minimum wage increases in excess of productivity gains means that employers will operate at a loss as far as the affected workers go," wrote Michael D. Tanner, a senior fellow at the Cato Institute following the passage of the FAST act. "Given that the average profit margin in the fast food industry is just 6–9 percent, those costs are almost certain to be passed along in terms of higher prices or lost jobs." and "Over the last few years, many Americans, myself included, have been to McDonald's and used touch screens to place our own orders instead of interacting with cashiers," wrote Brad Polumbo in the Washington Examiner this week. "Well, the more arbitrarily expensive you make human labor, the more companies are incentivized to hurry up and embrace automation."
i am sure that a good majority of fast food places like mcdonalds, wendy's burger king etc are franchises, i doubt the are making record profits, but hey, if you think they are maybe i need to look into that as a way to become wealthy.
He knows that but he cant help but respond by painting with a broad brush. It's his reflexive response to defend every action a politician with a D behind his/her name.
Automation has long been embraced by fast food cos to reduce human labor. I doubt it will noticeably if at all speed up what is an inevitable reality.
It could factor into the financial analysis of automation proposals by increasing the NPV of projected labor expense savings. In other words, proposals or potential automation projects that didn't meet an NPV or IRR threshold for approval under current labor expense levels, may meet those minimum levels for approval with increased projected labor expense. But it likely only accelerates the inevitable versus shifting paradigms such as implied by the quote to which you responded.
no, it does not please me because narrow minded thinking like this will cost people jobs, most likely upheaval in the families affected, more people might end up homeless all because some pie in the sky liberals want to stick it to big corporations.wonder why the king and queen of liberal socialism bernie sanders and AOC have not chimmed in, could it be they recognize this will do more harm than help?
And you're objective and balanced? Do you honestly believe McDonald's Corporation, which had net profits of $6.18 billion last year, is just scraping by?
Is there something wrong with 6.18 billion in profits? The real issue is these minimum wages will eventually cause fast food workers to be automated out of a job even faster than they already are. I suspect a $20 FF minimum wage won’t have much of an impact on CA coastal areas but will have an impact on some inland areas.
You do understand that the vast majority of fast food employees work for a small business? For example. There are 37855 McDonalds in the world. Only 2770 are corporate owned. Meaning wrt McDonalds 92.7% of the employees work for a small business. Not a massive corporation. And it is being generous using McDonalds. Just think about the local mom and pop you enjoy patronizing. By the way...the next time you go eat at your local mom and pop or any restaurant for that matter. See if they have a service charge on the bill. There is a good chance they do. The little things being done to keep the doors open. And at the end of the day...prices increase and the people that get hurt are the ones living pay check to pay check. As they get to deal with the increased costs in a way that actually affects them.
Employment levels are a record. Right wingers want to jack up the interest rates to put good people out of work. Make up your mind.
Perfect. I had not even read the thread and you decided to use McDonalds. Did you know that the vast majority of employees do not work for McDonalds corporate but actually work for small businesses that franchise with McDonalds?
If automation becomes comparatively cheaper vs labor why wouldn’t it accelerate automation? These companies don’t make large profits being indifferent to cost inputs.
I think the owners do well. But the idea they are evil uber rich mansion living corporate jet flying yacht riding business owners is pure naivety by the ignorant here on too hot who envy the rich. In fact there is a good chance some of the ignorant here have a neighbor who owns a food franchise.
yes, this bill will eventually hurt the bottom line of say mcdonald's. franchises pay a fee for the right to use the name, the more that go under due to this the less money mcdonald's gets from franchise fees, so in a way i guess this was the libbies master plan to stick it to large companies, force their franchisee's out of business, brilliant.
Huh? Pointing out its profits was to suggest it might have the ability to pay their workers more. I've no idea whether $20/hour is reasonable. Nor does the OP, or almost everyone else here who chimes in. He and some others simply like to routinely disparage anything California proposes.
I don't doubt that is a factor. Just question that any acceleration would be distinguishable from what is a constant (and thus inevitability).
