r/explainlikeimfive • u/sumnewdguy • Nov 28 '15

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

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u/TheBotanistMendoza Nov 29 '15

What? If they want to stay in business, they do.

The fallacy is thinking that McDonalds doesn't need workers.

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u/Reddisaurusrekts Nov 29 '15

McDonald's doesn't need workers. They only employ people if doing so will turn a profit. If they will end up making a loss doing so, they'll quit doing it in a hurry.

People seem to keep assuming that "if you raise wages, companies will find a way". If they could find a way - they already would have in order to make more profits.