What McDonald's Shows About The Minimum Wage

GURPS

INGSOC
PREMO Member
They obtained data on hourly wage rates of McDonald's "Basic Crew" employees, the prices of Big Macs and other information from about 10,000 McDonald's restaurants between 2016 and 2020. And they crunched the numbers to see what happens when a city or state increases its minimum wage.

One big fear of a higher minimum wage is that it could cause businesses to replace their workers with machines. Ashenfelter and Jurajda found that some McDonald's restaurants have already installed touch screens so customers can input their meal orders without interacting with a human being. But they also found that those touch screens weren't installed in response to higher minimum wages. "We couldn't find any relationship between minimum wage increases and the adoption of touch-screen technology," Ashenfelter says.

Not surprisingly, Ashenfelter and Jurajda found that McDonald's restaurants raise their wages after a city or state raises its minimum wage. More surprisingly, they found that a substantial fraction of restaurants preserve their pay premiums for workers who were previously earning more than the minimum wage. That is, if a worker was making a dollar more than the old minimum wage, many McDonald's will make sure those workers continue to make a dollar more than the new minimum wage. Ashenfelter says they don't have hard evidence for why this is, but he believes it's because certain restaurants want to offer wages slightly higher than the legal minimum as a way to reduce turnover. Paying above the minimum wage creates a kind of magnet for workers. Overall, the economists found that if the minimum wage goes up by 10%, the average McDonald's restaurant will increase worker wages by about 7%.

Finally and perhaps most thought provokingly, the economists looked at the effects of minimum wage hikes on the prices of Big Macs. They found that when the minimum wage goes up, the price of a Big Mac goes up too. Ashenfelter says the evidence from increased food prices suggests that basically all of the "increase of labor costs gets passed right on to the customers." But because low-wage workers are also usually customers at low-wage establishments, this suggests that any pay raise resulting from a minimum wage increase might not be as great in reality as it looks on paper. In econospeak, the increase in their "real wage" — that is, their wage after accounting for the price of the stuff they buy — is not as high, because the cost of some of the stuff they buy, such as fast food, goes up too.


 

Hijinx

Well-Known Member
They had to have a study to find that minimum, wage increases cost the price of the product to go up?
I could have told them that for free.
Raising taxes on business does the same thing always has.

You aren't taxing the business you are taxing the customers.
 

phreddyp

Well-Known Member
PREMO Member
They had to have a study to find that minimum, wage increases cost the price of the product to go up?
I could have told them that for free.
Raising taxes on business does the same thing always has.

You aren't taxing the business you are taxing the customers.
Yes libs just don't get that any cost associated with doing business gets passed on to the consumer , no question about it if you need 20% for overhead and profit you either get that 20% or go down the tubes
 

PeoplesElbow

Well-Known Member
Walmart did not maintain pay for workers making above their minimum, suddenly people making $10 more than basic pay that worked hard to get where they were got paid only slightly more than the stock boy that couldn't stay drug free or be bothered to show up half the time.
 

BOP

Well-Known Member
PREMO Member
They had to have a study to find that minimum, wage increases cost the price of the product to go up?
I could have told them that for free.
Raising taxes on business does the same thing always has.

You aren't taxing the business you are taxing the customers.
You missed out on the Gov't cheese by giving that information away.
 

WingsOfGold

Well-Known Member
Walmart did not maintain pay for workers making above their minimum, suddenly people making $10 more than basic pay that worked hard to get where they were got paid only slightly more than the stock boy that couldn't stay drug free or be bothered to show up half the time.
Walmart also offers FREE college tuition. 15 dollar min wage kiss that goodbye.
 

WingsOfGold

Well-Known Member
Not true at all.
And Its not free, online through 17 universitys it costs Walmart associates a dollar a day.
Pretty close to nothing, wife taught Walmart through Bellevue U. She thinks but not sure dollar a course. I'll watch a monkey **** for a dollar.
 

Monello

Yeah, whatever
PREMO Member
Walmart also offers FREE college tuition. 15 dollar min wage kiss that goodbye.
It amazes me that businesses like Walmart brag about giving back to their community while paying very low wages considering how profitable they are. Instead of donating book bags as a write off, just give employees a raise equal to the value of what you are donating.
 

PeoplesElbow

Well-Known Member
Not true at all.
And Its not free, online through 17 universitys it costs Walmart associates a dollar a day.
I was also told what they offer is damn near worthless. I know someone who chose to pay for the local community college instead of Walmarts free offerings.

This was the same disgruntled person who worked her ass off to get to 17 an hour for the work to be wiped out when they raised the starting wage.
 

Grumpy

Well-Known Member
It amazes me that businesses like Walmart brag about giving back to their community while paying very low wages considering how profitable they are. Instead of donating book bags as a write off, just give employees a raise equal to the value of what you are donating.
and then they will get beat up for not giving back to the community.
 

Hijinx

Well-Known Member
If you still buy cereal - the boxes are thinner front to back. They hold less, but it's not immediately obvious.
I buy cereal in a plastic bag with a recloseable top now, Never figured out why they never put a recloseable bag in the box.
 
Reactions: BOP

WingsOfGold

Well-Known Member
It amazes me that businesses like Walmart brag about giving back to their community while paying very low wages considering how profitable they are. Instead of donating book bags as a write off, just give employees a raise equal to the value of what you are donating.
The chineeeee book bags probably wouldn't amount to a ham sandwich over a weeks time if given back. Been many months since I have been in one BUT they deliver canned food, tools and whatever free even out to the sticks. :)
 

MArcan

Member
They obtained data on hourly wage rates of McDonald's "Basic Crew" employees, the prices of Big Macs and other information from about 10,000 McDonald's restaurants between 2016 and 2020. And they crunched the numbers to see what happens when a city or state increases its minimum wage.

One big fear of a higher minimum wage is that it could cause businesses to replace their workers with machines. Ashenfelter and Jurajda found that some McDonald's restaurants have already installed touch screens so customers can input their meal orders without interacting with a human being. But they also found that those touch screens weren't installed in response to higher minimum wages. "We couldn't find any relationship between minimum wage increases and the adoption of touch-screen technology," Ashenfelter says.

Not surprisingly, Ashenfelter and Jurajda found that McDonald's restaurants raise their wages after a city or state raises its minimum wage. More surprisingly, they found that a substantial fraction of restaurants preserve their pay premiums for workers who were previously earning more than the minimum wage. That is, if a worker was making a dollar more than the old minimum wage, many McDonald's will make sure those workers continue to make a dollar more than the new minimum wage. Ashenfelter says they don't have hard evidence for why this is, but he believes it's because certain restaurants want to offer wages slightly higher than the legal minimum as a way to reduce turnover. Paying above the minimum wage creates a kind of magnet for workers. Overall, the economists found that if the minimum wage goes up by 10%, the average McDonald's restaurant will increase worker wages by about 7%.

Finally and perhaps most thought provokingly, the economists looked at the effects of minimum wage hikes on the prices of Big Macs. They found that when the minimum wage goes up, the price of a Big Mac goes up too. Ashenfelter says the evidence from increased food prices suggests that basically all of the "increase of labor costs gets passed right on to the customers." But because low-wage workers are also usually customers at low-wage establishments, this suggests that any pay raise resulting from a minimum wage increase might not be as great in reality as it looks on paper. In econospeak, the increase in their "real wage" — that is, their wage after accounting for the price of the stuff they buy — is not as high, because the cost of some of the stuff they buy, such as fast food, goes up too.


True, but with the fact that they are low wage earners, means they will continue to patronize big box stores where they can still afford to get their daily needs met, instead of your local small businesses. So there's that.
 

black dog

Free America
It amazes me that businesses like Walmart brag about giving back to their community while paying very low wages considering how profitable they are. Instead of donating book bags as a write off, just give employees a raise equal to the value of what you are donating.
I will say that there are endless opportunities for associates to move into management. The first qualifier is to work 90 days with no missed days and no tarty or early out timeclock punches. Along the way they need to aork a few extra shifts for others that call out.
Most folks fail within the first few weeks.
Walmart has some darn good benifits if the associates would actually read the handbook or ask HR how something works.
Most dont care even to signup for the 401 and get free money from Walmart. Its easier to bash and condem them.
Truly they are not the horrible company that so many believe they are.
 

black dog

Free America
I was also told what they offer is damn near worthless. I know someone who chose to pay for the local community college instead of Walmarts free offerings.

This was the same disgruntled person who worked her ass off to get to 17 an hour for the work to be wiped out when they raised the starting wage.
Interesting, most disgruntled employees have nothing good to say anout who they work for.
My bestie has two masters and a law degree from UM and for the last year she has been taking dollar a day classes and I have heard nothing negitive at all from her. I as her partner get benifits from Walmart, I am learning another language and the cost is nothing. There are over a thousand courses that they get for free.
Get your ged for free, pass and they get 300.00 in rewards.
 
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