02 March, 2021

Hey, this isn’t Fair!

Wait, so you’re Telling me that When Business Costs Go up, So Do Their Prices? What? Who made up these rules??

McDonald’s Response to Minimum Wage Hikes Totally Undercuts the ‘Fight for $15,’ New Study Shows - Foundation for Economic Education (fee.org)

A recently-released study reveals that past minimum wage hikes resulted in much higher menu prices for consumers.

Princeton economist Orley C. Ashenfelter and Czech economist Štěpán Jurajda studied price and wage data from almost every McDonald’s restaurant in the US. They found a “full or near-full price pass-through of minimum-wage-induced higher costs of labor.” In English, this means that by vastly increasing production costs,  minimum wage hikes resulted in an equivalent increase in menu prices.


It’s almost like math works. Which means it’s racist. Which means that McDonald’s is racist.

Well, minimum wage hikes are intended to help workers. Proponents say that everyone deserves a “living wage” and argue that a government-mandated wage increase will mean higher wages for workers. In contrast, the most common counterpoint against minimum wage increases is that they lead to unemployment. This is indeed true, and the nonpartisan Congressional Budget Office estimates that a $15 federal minimum wage would eliminate at least 1.4 million jobs.

Well, we can’t have that. Clearly, Congress needs to step in and force businesses not to reduce staff to cover the increased costs.

You think I’m kidding, but it’s coming.

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