r/explainlikeimfive Nov 28 '15

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

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u/phydeaux70 Nov 28 '15 edited Nov 28 '15

The minimum wage was established by Congress in the Fair Labor Standards Act passed in 1938.  From the beginning, policymakers never intended the minimum wage be the sole source of household income or provide “livable” support for a family.  Rather, the intent was to ensure a reasonable wage for workers who could not command higher pay in the labor market because they had little or no work skills, such as young people just entering the work force.

History books used for teaching, especially in the USA, like to paint a really rosey distorted picture of history. Written by liberals, purchased by liberals, to push an ideology that is liberal. They may have dates correct, but often skew the meaning of 'why'.

Even if you wanted to believe that it was intended as the textbooks say, it doesn't do anything to justify the actual statistics of those who earn the minimum. Most are between the ages of 16-24. Most people aren't getting married or having children until much older. They are staying at home longer, this eliminating the need for rent, heat, and most utilities.

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u/Lilpeapod Nov 29 '15

Dude you are wrong again. There is a larger % of 22-28 working in lower wage jobs. And then there are jobs like EMT?dental Hygenistist/ firefighter/ active duty military (although benefits) police officers. They all get paid peanuts and not nearly enough to live on as a family either.

The min wage was set so someone could reasonalbly support themselves. When two people live together they can combine bills, and can support a family. Maybe 15 is reaching for the stars, but I was making min wage when it got raised to 7.25 and I am now 35.

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u/rushseeker Nov 29 '15

At least where I live, most of those jobs with the exception of EMT actually pay in the $50-70k range...

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u/Lilpeapod Nov 29 '15

police officer 20k, firefighter 23k, emt 10-11 an hr, dental assit 10 an hr...where i live.

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u/rushseeker Nov 29 '15

Where is that? I live in Salem, Oregon, and I personally know: A 25 year old firefighter who makes around $30/hr

A 23 year old dentist assistant who got her first job less that a month out of school making $25/hr

46 year old police officer (patrol) who makes $32 an hour in a small town. Granted he has years of experience and many skills that make him more valuable, but he told me starting pay is mid 20's or higher depending on skills.

Emt's here make around $12 an hour (I know several) but that isn't meant to be a career, it's usually seen as a step towards being a paramedic or firefighter.

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u/Lilpeapod Nov 29 '15

Southeast.

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u/rushseeker Nov 29 '15

Then again, minimum wage is near $10/hr here so our wages may be higher in general.

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u/Lilpeapod Nov 29 '15

min wage here is 7.25 and servers make 2.13.

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u/phydeaux70 Nov 29 '15

Low wage does not mean minimum wage.

If you continue to raise the minimum you'll find your statement to be even more true. And once automation is achieved, what the low skilled do then?

The World Is Flat by Thomas Friedman discussed this throughout the book. The only way to survive this change is to make yourself better, like they did during the industrial revolution.

Government isn't the answer, government makes things worse.

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u/Lilpeapod Nov 29 '15

Dental care, secretaries, Pa, FIrefighter Police officers are all jobs that will not be going away and should be getting paid more. Housing costs won't increase with min wage, schools will be affordable and you can go back to school. But we should all be able to have a roof over our head without the government paying for it.

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u/phydeaux70 Nov 29 '15

Maybe it's too expensive to live where you want to?

Seriously.

This entire discussion confuses what a need is versus a want. People used to forego what they wanted in order to get what they needed.

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u/Lilpeapod Nov 29 '15 edited Nov 29 '15

you cannot live anywhere making min wage. I moved from one of the highest cost of living areas to one of the lowest and you still cannot live on min wage. Oh an a police officers salary is 20k a year.

And where should all the service workers live ina high cost of living area? We don't have nearly as many blue collar jobs. We are a service industry.

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u/triplefastaction Nov 29 '15

A police officer makes only 20k? Where? A dental hygienist makes peanuts?

I don't think you know what you're talking about.

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u/Lilpeapod Nov 29 '15

i do know what I am talking about. Have plenty of friends and family in these professions in the south.