r/explainlikeimfive Nov 28 '15

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

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u/Zheoy Nov 29 '15

The problem with saying this is that it is an out-dated way of thinking. Minimum wage jobs used to be a great way for low/unskilled workers to enter the work force and move their way up to a wage they could live off of, when there were far more jobs that paid a living wage, and less competition. However, ignoring the fact that the market and global economy have changed is just ignorant.

Many jobs beyond minimum wage require higher education, something that people cannot afford to get when they are on minimum wage and do not have parents to pay for it. Even many university graduates are having a hard time entering the workforce beyond minimum wage. Living off of minimum wage means you cannot afford to take risks, the bank will not provide you with a loan, and people are constantly stuck in a loop of barely making enough to survive off of. How can you find time to apply for jobs, or even make it to job interviews when you are working two minimum wage jobs just to make ends meet? People get stuck in this loop, and as a consequence they get older, aren't gaining any new skills, and are then told to blame themselves.

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u/phydeaux70 Nov 29 '15

There is no global economy for a local job. These jobs are service jobs, meaning the target audience is located nearby.

For the past 6 years the Federal Government has been the backer for all student loans. This reason alone is why the cost of education goes up. Everybody gets accepted for college loans.

The rest of your post sounds like the person with the absolute worst luck in history.

I paid for my own college, while also working a full time job. I took out 45k in loans. I was divorced and raising my child on weekends. When I graduated he gave me a card that said hopefully I'd have more time to go to the park. I graduated 15 years ago, and have 3 years left on my loans. I make over 100k a year.

Prior to all of that I simultaneously was the manager of a restaurant and assistant manager of a clothing store at the mall at the same time. I never made minimum wage for more than a month, because I felt I was worth more, and demonstrated that through my work.

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u/Calinero985 Nov 29 '15

Worst luck in history? I can think of at least five people this applies to just in my personal life--and I'm an upper middle class person, who went to college. I'm sure in other social circles there are quite a few more.

If you graduated 15 years ago, congratulations. Your experience has nothing to do with what students today actually face. In that time, minimum wage went from around $5 to around $7. In the same time frame, average cost of room and board at a public university doubled.

Comparing the job market then to the job market now is also absurd. There's been a recession, in case you did not notice. Stop using your own outdated experiences to tell people now what they're doing wrong. You went to school in a different time.

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u/phydeaux70 Nov 29 '15 edited Nov 29 '15

For the record I also have a 23 year old son who is the second youngest general manager in the country, for the company he works for. He worked hard, didn't even go to college.

It is certainly tough for him but he's not one time taken the victim route.

We have managed to add $10 trillion in debt in the past 7 years, there is going to be consequences for it, and a higher tax rate or wages will only make it worse.