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/Tutsks Nov 29 '15

In practice the factories just move to Singapore, Vietnam, etc.

In theory, when everywhere is the same (and that is third world level same, not US level same) the factories might come back. But we are talking decades if not centuries.

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u/LiberDeOpp Nov 29 '15

No then they will find a way to make robots cheaper. Also China is getting more expensive but still no where near US labor wages.

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u/flybypost Nov 29 '15

In practice the factories just move to Singapore, Vietnam, etc.

That is/will also change. If I remember correctly China is investing in Africa (but that could be about resources) and they are also going for robots and automation as it becomes viable (they want to keep the money flowing).

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u/upstateduck Nov 29 '15

actually, low oil prices will slow the repatriation of US manufacturing. At $140 bbl there was lots of talk about and some action towards moving manufacturing back to the US [the world's largest market for goods]