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The average cost to start a McDonald's is around $1 million. The rate of return is absurd. Most franchise owners also become experts running at running a rest

The average cost to start a McDonald's is around $1 million. The rate of return is absurd. Most franchise owners also become experts running at running a restaurant franchise making them even less likely to move into something else. McDonalds isn't going anywhere when minimum wage goes up. Your point would have been better if you'd been talking about someone working at a small struggling restaurant that was barley able to stay open. Even then, you're completely ignoring the effect that moving money from the wealthy to low income earners will have on the economy (read up on velocity of money). There are definitely more efficient ways to do this, but you can't just ignore the effect and state that minimum wage = fewer jobs.

matthewmarkus 9y ago
I never said that minimum wage = fewer jobs in all contexts. It will definitely destroy certain employment opportunities in certain circumstances. I suppose I would consider it an accelerant for automation.
- learc83 9y ago
  You implied that a minimum wage of $15 would eliminate fast food jobs. The numbers indicate that it won't. >It will definitely destroy certain employment opportunities in certain circumstances. Sure and a 0.1% sales tax will destroy certain employment opportunities in certain circumstances. The key is to find a balance. I'd prefer a universal basic income or an increase in the EITC. But I think fighting for a $15 minimum wage that won't kick in until 2024 at the earliest, and will probably be negotiated down to $12, is better than what we have now. $15 in 2024 will be about $12.50 in 2016 dollars based on projected inflation by the way.
lsiebert 9y ago
The US has raised the minimum wage multiple times. Want to read a study of seven decades of historical data about what happens when the minimum wage increases? http://www.nelp.org/publication/raise-wages-kill-jobs-no-correlation-minimum-wage-increases-employment-levels/ http://www.nelp.org/publication/raise-wages-kill-jobs-no-cor... There is no correlation with decreased employment, in fact most times, there are employment increases, and these increases are bigger in industries more effected by minimum wage like retail and hospitality.

matthewmarkus 9y ago

I never said that minimum wage = fewer jobs in all contexts. It will definitely destroy certain employment opportunities in certain circumstances. I suppose I would consider it an accelerant for automation.

learc83 9y ago
You implied that a minimum wage of $15 would eliminate fast food jobs. The numbers indicate that it won't. >It will definitely destroy certain employment opportunities in certain circumstances. Sure and a 0.1% sales tax will destroy certain employment opportunities in certain circumstances. The key is to find a balance. I'd prefer a universal basic income or an increase in the EITC. But I think fighting for a $15 minimum wage that won't kick in until 2024 at the earliest, and will probably be negotiated down to $12, is better than what we have now. $15 in 2024 will be about $12.50 in 2016 dollars based on projected inflation by the way.

lsiebert 9y ago

The US has raised the minimum wage multiple times. Want to read a study of seven decades of historical data about what happens when the minimum wage increases? http://www.nelp.org/publication/raise-wages-kill-jobs-no-correlation-minimum-wage-increases-employment-levels/ http://www.nelp.org/publication/raise-wages-kill-jobs-no-cor... There is no correlation with decreased employment, in fact most times, there are employment increases, and these increases are bigger in industries more effected by minimum wage like retail and hospitality.