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Wednesday, December 31, 2014

GEE, WOULDN'T IT BE NICE IF WE EARNED $15.00 AN HOUR? HERE ARE SOME CONSEQUENCES

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UPDATE 12/31/14:  Thought this article was important enough to share again.  

Dear Readers: 

I came across this article today about the battle over the $15 minimum wage, and I thought you would appreciate some statistics. Now I'm for anybody earning as much as they possibly can, however, the reality is not all of us can start off earning $15 an hour in our current economy. Some jobs must remain at a wage for those who are entering the labor force for the first time. And it seems that most of these jobs come in the fast food industry. One item that the article below does not cover is the impact of those who are on a fixed income. For those who who are in that particular category there is no "minimum wage", or increase to that fixed income to compensate for the raise in prices that will result in the increase of the minimum wage.  Enjoy the article and the graphic presented below:

"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:
The Daily Signal also reports that when this is applied to some of our favorite fast food items: 
  • 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.

Kind of takes away one of the main reasons people buy fast food in the first place, right?

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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