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I respectfully disagree with this notion - just pay more to workers. There are many people who in this very thread talk about sustainability of businesses, espe

I respectfully disagree with this notion - just pay more to workers. There are many people who in this very thread talk about sustainability of businesses, especially those cannot survive without lower wage jobs. All the while ignoring the reasons behind why businesses actually do that. Couple of years ago, I traveled to US for the first time. And the most startling thing for me was - the relative price of stuff in US. Let's take for example - McDonalds. In US, they use the cheapest ingredients and pay workers minimum wage to keep food costs low and accessible. Sure, you might say the food is shit but cheap and accessible nonetheless. In contrast, my native country (a developing one) they use same cheap ingredients and "decent pay" to employees. The end result is that 95% of the population cannot afford their burgers. McDonald's burgers are considered luxury items. So, I think people should also think along those line. Why are companies actually not willing to pay more? It is easy for everyone to be cynical and say cheap labor benefits few millionaires/billionaires but that is not the full story.

toomuchtodo 8y ago
If your business can't afford a higher wage, you don't deserve to be in business. McDonalds isn't going to go out of business paying more, it'll come out of shareholder profits. @coredog64: I agree that Starbucks would be a better example.
- thisisit 8y ago
  Decreasing shareholder profits is not the only outcome. The incentive will also be to increase burger prices. And I think that will have its own knock on effect.
- coredog64 8y ago
  McDonalds is a poor example here. McD is primarily a franchise model, selling supplies and demand for what the brand sells. Higher wages would primarily impact the franchisee. The only way McD (the corporation) can increase wages is to mandate that franchises pay above minimum wage. I believe Starbucks is a better example as they don’t use the franchise model.
- drak0n1c 8y ago
  Unfortunately when minimum wage and mandatory benefit policies are implemented along the lines of this kind of thinking the reality is that sure, high visibility efficient and scaled businesses like McDonalds and Starbucks can afford to pay more, but family restaurants who can't either have to take on unsustainable debt gambling at becoming the next one-of-a-kind Katz's Deli or go out of business. Then people look at their city streets and wonder where all the mom & pop stores and restaurants went.

toomuchtodo 8y ago

If your business can't afford a higher wage, you don't deserve to be in business. McDonalds isn't going to go out of business paying more, it'll come out of shareholder profits. @coredog64: I agree that Starbucks would be a better example.

thisisit 8y ago
Decreasing shareholder profits is not the only outcome. The incentive will also be to increase burger prices. And I think that will have its own knock on effect.
coredog64 8y ago
McDonalds is a poor example here. McD is primarily a franchise model, selling supplies and demand for what the brand sells. Higher wages would primarily impact the franchisee. The only way McD (the corporation) can increase wages is to mandate that franchises pay above minimum wage. I believe Starbucks is a better example as they don’t use the franchise model.
drak0n1c 8y ago
Unfortunately when minimum wage and mandatory benefit policies are implemented along the lines of this kind of thinking the reality is that sure, high visibility efficient and scaled businesses like McDonalds and Starbucks can afford to pay more, but family restaurants who can't either have to take on unsustainable debt gambling at becoming the next one-of-a-kind Katz's Deli or go out of business. Then people look at their city streets and wonder where all the mom & pop stores and restaurants went.