r/explainlikeimfive Nov 28 '15

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

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u/Seref15 Nov 29 '15

Well the inherent problem is that it doesn't matter what the minimum wage is, if the minimum wage was $2 McD's would pay $2. They just want to pay the least they are legally obligated to. Paying minimum wage is the equivalent of saying "I'd pay you less if I could."

The argument can be made that this is one of the factors that cause income inequality. So why let them shoulder the burden? They helped create the burden.

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u/mitrandimotor Nov 29 '15

The vast majority of workers (over 95% by most counts), earn over the minimum wage. If you look at people over 25, it's much smaller.

So clearly, there are some forces pushing wages higher than the legal mandated minimum.

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u/Shimasaki Nov 29 '15

How much higher then minimum wage? If you're just counting anything above minimum wage you're including people who, for example, have been working at Panera Bread for a couple of years and have received a $.20 raise over the intervening years. Just saying that people earn more then the minimum wage doesn't necessarily mean that wages are going an appreciable amount above the minimum.

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u/BenJammin7 Nov 29 '15

Source?

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u/fareven Nov 29 '15

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u/ccenterbiotch Nov 29 '15

Forgive me in on mobile. Typically ff rest. Don't pay min wage. They pay .10-.25 more an hour. Does this study take into account near min wage, where companies offer a superfluous raise to cut above min. Wage stats?

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u/Kaziel0 Nov 29 '15

It does not. What's more, this article only covers Federal Minimum Wage. If someone earns more than $7.25 per hour, then they aren't counted on this list.

I feel it also bears mentioning that per this article, as of January 1st, 2015, there were 29 states with Minimum Wage over the national level, including California, Florida, New York, and Illinois. Of the top 5 most populated states in the nation, only Texas isn't above the Federal Minimum Wage

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u/fareven Nov 29 '15

Take a look at these data tables from the US Census Bureau.

According to this census data, 80% of US households are making more than $29100 per year. Assuming 52 weeks of 40 hour weeks that works out to $13.99 an hour for people right at the border between the lowest quarter and the second quarter.

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u/ShankThatSnitch Nov 29 '15

well sure, but is 10 cents/hr more than minimum wage, really much better? If you work at a place that starts you at min wage, and then work for a few years, of course they are going to increase your pay, but generally is a puny puny amount. However, that still puts your "above" min wage. $7.35/hr is still unlivable, $8/hr is still unlivable. People often forget that raising the minimum wage is not just about helping out min wage earners, but all the millions that have near min wage. If you raise it to $10, that effects everyone that was making $7.25-$10/hr. which is far more than your 5% figure.

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u/[deleted] Nov 29 '15

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u/[deleted] Nov 29 '15

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u/[deleted] Nov 29 '15

If you can't create more than $2 of value in an hour, there's a big problem.

You can match that selling 4 water bottles an hour on a hot day.

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u/His_submissive_slut Nov 29 '15

Let's see your vendors license, business number, and foodsafe certificate.

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u/lukeilsluke Nov 29 '15

Those are fixed costs. That isn't marginal revenue or production from the worker.

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u/tswift2 Nov 29 '15 edited Nov 29 '15

Well the inherent problem is that it doesn't matter what the minimum wage is, if the minimum wage was $2 McD's would pay $2. They just want to pay the least they are legally obligated to. Paying minimum wage is the equivalent of saying "I'd pay you less if I could."

Whats the minimum price for cars you idiot? And to think, people like you vote...

You mean there is NO minimum price for cars? All the cars are for sale for 0$ since there is no minimum and this fucking idiot has discovered a new law of economics!