Dear Readers:
"If the minimum wage for fast food stores was raised to $15 the Daily Signal illustrates that the following could happen, assuming a store made changes to maintain a positive profit margin:
- A Big Mac meal increases from $5.69 to $7.82.
- Wendy’s Son of a Baconator combo increases from $6.49 to $8.92.
- Taco Bell’s 3 crunchy tacos combo increases from $4.59 to $6.31.
- A Whopper meal increases from $6.15 to $8.46. ubway’s turkey breast Footlong increases from $6.50 to $8.94.
Their study also came up with some other effects that would be likely:
- Utilizing higher skilled workers to gain efficiency and productivity.
- Substitution of labor with automation.
- Many businesses will close their doors rather than risk so much capital with such a tiny return.
The Heritage study took into account 24 years of various studies on operation expenses of fast food stores, as well as 32 years of studies on how prices affect demand for such foods. In other words, Heritage’s conclusions are informed by facts and history.
Obviously, whether these conclusions will have an impact on proponents of a $15 minimum wage, as their stated goals are to increase income and employment and the $15-an-hour wage will yield neither, remains to be seen."
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