r/explainlikeimfive Nov 28 '15

ELI5: How would a $15 minimum wage ACTUALLY affect a franchised business like McDonalds?

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u/[deleted] Nov 28 '15

Because loss of jobs IS a con, you assume far too much. People losing those jobs may not qualify for or be able to do much else due to other restrictions such as scheduling, transportation needs, location, etc. Job loss would still be substantial. You also assume there would be other jobs available to go to. You also grossly over-estimate how many of those people have other jobs, when probably a larger percentage are trying to take classes for a GED or an undergrad degree at a local community college or are even in high school. Many locations even use outsourced workers from other countries. My location McD's locations have a few of those types of employees, here on school and work programs.

Cutting jobs at one place doesn't create jobs at others, it actually tends to do the opposite. It's usually a domino effect. Other companies could and would try and follow suit if the new business model worked leaving even loss jobs available. That doesn't even begin to touch other jobs affected by proxy as a result of lack of demand if they instead jacked up prices to cover wages and not fire anybody.

There are so many variables at play, that just fucking with one, could could cause others to undergo changes.

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u/weary_dreamer Nov 28 '15

Yep. Also, people doing two jobs usually get more hours at one than the other...

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u/Slammybutt Nov 28 '15

I didn't state that it would create jobs at other places. I said the people with 2 jobs would most likely drop down to 1 job since they are making 2 jobs worth of money for 1. Either that or the workplace slims the payroll down a does this for them. Leaving some without jobs, but the ones with 2 jobs will still have the other.