Categories
economics

They lied

Just recently, the press was busy covering us in lies by claiming that increases to the minimum wage wouldn’t increase prices.

The minimum wage in Florida recently saw its first increase on the way to the new $15 an hour wage, as did many other states. Now we are seeing stories about restaurant chains who are increasing prices. The wages are hurting profits, and more price increases are on the way. By March, McDonald’s prices were up 6% year over year, with another 3 to 4% increase coming in the next quarter.

5 replies on “They lied”

I’m gonna take he other side of this. In 1968, at 15 I worked ful time, listed as part time, at McDonalds for 1.50 /hr

Given the at least 10X index for inflation between 1968 and today, I see nothing wrong with 15 bucks an hour for these jobs.

Mandated by law?
I also don’t think that you are comparing apples to apples. Businesses have expenses that they didn’t have in 1968. Obamacare. Higher taxes. More regulatory burden.

Well, taxes they pass on to us. The company I work for has not been paying appreciably more because of obamacare, we employees are though. I don’t have a line on the cost of regulations. No doubt there is some cost, but then again, businesses providing products or services (costs of doing business) are passed on to their customers eventually.

Exactly my point. The higher price of the finished product includes the cost of regulatory burden. That means hourly pay is only part of your compensation. The other costs of employment must be factored in.
What an employee receives in hourly compensation is just over half of what it actually costs to hire that employee.

The consumers are getting hit for both wage increases, and inflationary increases in goods. I have been seeing a lot of newly printed menus at restaurants because of price increases.

Comments are closed.