In the wake of today’s nationwide strike of fast-food
workers demanding a wage of $15 an hour, anyone paying attention to the news
can’t help but be exposed to the usual inane calls for “compassion” and a “living
wage”.
Take a step back and consider what $15 an hour paid to a
McDonald’s worker would mean:
#1 – The costs to run the business skyrocket.
#2 – In order to cover the skyrocketing costs, the business owners will have to raise prices or go out of business.
#3 – Raising the price of a Big Mac from $3.50 to $6.00 will lower demand. With fewer Big Macs being sold at the higher price, the business owners
can only hope to maintain revenue at previous levels, however that rarely
happens because consumers either search for substitutes for the now more expensive
product or they forgo purchasing the product all together.
#4 – With lower revenue and higher expenses, owners are
forced to lay-off workers.
#5 – If an owner ever does begin hiring again, they can no
longer consider teenagers and other low-skilled workers for these entry-level roles.
After all, who in their right mind would pay a 17-year old or a high school drop-out
$15 an hour to sweep floors, flip burgers, or take orders?
The result is higher unemployment for low-skilled,
younger workers and, to make matters worse, the minority communities are always
hit hardest in these scenarios.
