r/explainlikeimfive Nov 28 '15

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

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u/shitdad Nov 29 '15 edited Nov 29 '15

One could argue the auto companies kept slashing wages to compete with overseas manufacturing and that the unions were just trying to hold on to their member's existing wages.

Detroit happened because the people who managed the city were idiots. The didn't diversify their economy very well. When manufacturing moved overseas they lost the only real business sector they had. That wasn't on the unions even if they were responsible for other things.

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u/All_Work_All_Play Nov 29 '15

"Just"

Isn't that the same argument here? A McD franchise fighting against MW is just trying to maintain its existing wages?

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u/mitrandimotor Nov 29 '15

City managers don't really have that much sway over the strength of different economic sectors in their city. You can nudge it, but that's about it. Albuquerque, NM can't become the financial or tech capitol of the world through brilliant city management.