Chart: How Much Fast-Food Prices Would Rise If Employers Paid $15 an Hour

Discussion in 'News / Current Events' started by Revmitchell, Sep 4, 2014.

  1. Revmitchell

    Revmitchell
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    As thousands of fast-food workers participate in strikes today pushing for their wages to be raised to $15 an hour, it’s important to remember the consequences that such a steep raise could have.

    According to a new report released today by James Sherk, a labor policy expert at The Heritage Foundation, such an increase could result in fewer hours of work overall at fast-food restaurants and higher prices for all.

    Profits:-77%

    Sales: -36%

    Total Workers Hours: -36%

    Prices: + 38%

    http://dailysignal.com/2014/09/04/c...5-hour/?utm_source=facebook&utm_medium=social
     
  2. Sapper Woody

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  3. Salty

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    and with less workers - it will take longer for your order.

    But here is another item that these minium wage workers may not realize.

    Suppose they do get the $15/ hr. First many of those workers will actually have Fed and State/Commonweath taxes withheld. (if they make just a little - there are at the 0% tax.

    Others - who have some tax withheld, will find that in April they will not get a refund because they will actually owe taxes.

    Third - if a union is formed, now they have to pay union dues.

    It is very possible - with that raise - they will end up with less money.
     
  4. InTheLight

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    The price increase of 38% seems too low to me. I would think if profits decreased 77%, prices would need to be raised more than 38%, which would cause all the numbers to change.

    McDonald's is in big trouble because customers aged 20-30 are abandoning them. Let's face it, the main reason people go to McDonald's is for the prices. If they raised prices 38% it would be a death knell.
     
  5. Rolfe

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    Less people could afford to eat fast food. More people lose weight.

    [​IMG]
     

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