> ...responsibility is to pay market rate... That might be their corporate responsibility, but they also have a social responsibility in that the conduct of th

> ...responsibility is to pay market rate... That might be their corporate responsibility, but they also have a social responsibility in that the conduct of their business should not overly burden the public. The link I referenced was meant to point out that when minimum wage doesn't cover the cost of living, those workers end up relying on public assistance to make up the difference. > ...whether raising the minimum wage would reduce job opportunities. Probably it would... A study from 1992 on the effect of a minimum wage hike along the NJ/PA border found that there was not a significant impact from raising min wage. [1] The study has been alternately challenged and confirmed since then by other studies, but we will be getting a lot of new data from the recent increases to $15/hr in major metro areas of the US in recent months. As for "should we", it all depends on whether you think corporations or government should be responsible for providing a living wage. Many folks point out the minimum wage is primarily intended for young people, but it's not being used that way anymore. And, in fact, other places have adapted without terrible consequences. Australia, for instance, has a juvenile minimum wage around $6.60/hr (USD), which doubles for adults. > Are stock buy backs a good idea? ...down to what...is the best use of the shareholders money. The point here is that McDonalds is making mutually exclusive arguments. On the one hand, they say they don't have the money to raise wages. On the other hand, they have so much money that they can initiate stock buybacks. The status quo requires public assistance to cover the wage gap between minimum wage and living wage, so until McDonalds picks up that tab both workers and taxpayers are being affected. I have nothing against stock buybacks, but it seems hypocritical in this case given the circumstances. [1] http://www.nber.org/papers/w4509 http://www.nber.org/papers/w4509 [2] http://en.wikipedia.org/wiki/Minimum_wage_law#Australia http://en.wikipedia.org/wiki/Minimum_wage_law#Australia