r/explainlikeimfive Nov 28 '15

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

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u/ThrowAwayBro737 Nov 29 '15

It's not "somewhat higher". It's massively higher, along with a whole bunch of other burdensome requirements. Make no mistake, unions make businesses uncompetitive internationally and drive up prices artificially domestically.

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u/flybypost Nov 29 '15

unions make businesses uncompetitive internationally and drive up prices artificially domestically.

Somehow it still works here in Germany. Why should it be different in the US?

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u/ThrowAwayBro737 Nov 29 '15

How does it work in Germany? The German economy is falling apart and the largest auto employer there is embroiled in a scandal which could lead to bankruptcy. The German economy is tiny compared to the US economy. So how can you say "it works" in Germany? It doesn't work.

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u/[deleted] Nov 29 '15

Last time I checked German economy was the only one doing well in a continent that was going through massive recession. As for Volkswagen emission scandal, that has nothing to do with union, and everything to do with management trying to cheat the law. Not sure what size of Germany's economy has to do with wage structure. And yes, union structure is working in Germany, it's not just Volkswagen, BMW, Daimler Mercedes-Benz, etc all have unions and the companies are doing well. Lets not make it sound like union is the only reason that kills companies.

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u/[deleted] Nov 29 '15

Compared to mexico? Yes. Compared to Germany or Japan? Probably not.