Elizabeth Warren addresses raising the minimum wage and its effects. (unemployment, rating)
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I don't know the specifics of the particular company in the interview but McDonalds has a pretty solid profit margin. If Safeway went into business with a model of 1% I don't see how they survive.
The original contention that increasing minimum wages would bankrupt these companies needs more explanation, particularly those that are around 10%
I don't know the specifics of the particular company in the interview but McDonalds has a pretty solid profit margin. If Safeway went into business with a model of 1% I don't see how they survive.
The original contention that increasing minimum wages would bankrupt these companies needs more explanation, particularly those that are around 10%
I'm not sure anyone actually said that companies will go bankrupt. There is no study that supports that view and the few that could go bankrupt would just ship the jobs overseas or switch to a new industry. Some companies will cut hours, some will layoff people, some positions will be eliminated, some will automate, some will increase workloads, some will require more experience and education, but companies won't willingly go bankrupt it's far, far easier to fire half the people and ask people to do more work.
A dollar represents the value of your work and the minimum wage only sets the standard for what the least valuable work is. Here's some simple math:
McD's employee makes $7 per hour and pays $7 for McD's meal
McD's employee makes $70 per hour and pays $70 for McD's meal
McD's employee makes $7,000,000 per hour and pays $7,000,000 for McD's meal
Any argument it doesn't have any inflationary costs is BS. What they don't take into account is when you raise the rate for $7 an hour employees to $10, your employee that is making $10 per hour is now making minimum and rightfully is going to want $13 since they are more skilled. The $13 per hour worker now wants $16....
You will never increase the amount you make by simply increasing the amount of dollars, you need to increase the vlaue of your work.
Show me an example of a grocery store large or small that can survive on a 2% profit margin. Why would you even think of going into business for a 2% profit margin unless you have a low regard for money.
I don't think you understand how business works. A profit is still a profit.
A dollar represents the value of your work and the minimum wage only sets the standard for what the least valuable work is. Here's some simple math:
McD's employee makes $7 per hour and pays $7 for McD's meal
McD's employee makes $70 per hour and pays $70 for McD's meal
McD's employee makes $7,000,000 per hour and pays $7,000,000 for McD's meal
Any argument it doesn't have any inflationary costs is BS. What they don't take into account is when you raise the rate for $7 an hour employees to $10, your employee that is making $10 per hour is now making minimum and rightfully is going to want $13 since they are more skilled. The $13 per hour worker now wants $16....
You will never increase the amount you make by simply increasing the amount of dollars, you need to increase the vlaue of your work.
I get your point, but McD's is a bad example to use. They have the same profit margin as pharmaceutical companies. McD's could raise wages 30-50% without raising prices. I think people should boycott that place.
McDonalds is one of the companies that has laid off American citizen workers and demanded Congress pass immigration reform so they could bring in cheaper labor, which would put a stop to the talk about higher wages. I would really be interested to see what Warren says about that. She would have a lot of support from members of both parties if she supported the American worker.
Show me an example of a grocery store large or small that can survive on a 2% profit margin. Why would you even think of going into business for a 2% profit margin unless you have a low regard for money.
A 2% profit margin... Never repays the investment to start a business.
If you think anyone will start a business to get a 2% profit margin, you're insane.
yep
What i don't get is why people cant see that most fast food places people buy them as a franchise. They work there tail off and are not rich buy any means . I know a hand full of people that own a franchise and they have told me they end up working long hours and have a hard time making ends meet as it is. Also when they hire people they can not afford to pay people $15 an hour they will go out of business or let the workers go .
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