Here is a clear explanation of why the minimum wage cannot be increased to $15 an hour. These are not my words just a good explanation. Look at a typical McDonalds - Lets say it is one open 24 hours a day, and the AVERAGE staff is 10, and the AVERAGE pay of those 10 is $8 a hour. So in a day, the workers there are paid a total of 24X10X$8, or $1,920. On top of that is additional FICA and other taxes, making it least $2,200. Over a year, that is $2,200X365 = $803,000. The Average McDonalds sells $2,600,000 a year (that is more than twice the average BK or Wendys), or about $7,100 a day. So of that $7,100, $2,200 (31%) goes to wages. Liberals do not understand this, but the vast majority of the remaining $4,900 a day does not go into the pocket of the owner. He has to pay rent or a mortgage (and taxes if there is a mortgage), and for the equipment, food, cups, napkins, utilities and other expenses. In the end, he makes on average 4%, or about $284 a day. Has Obama or any of these liberal Wonks ever hoped to earn $284 a day after busting their chops for 20 years to get there? Doubling payroll (some people will make more than minimum wage) to $16 and hour would result in a flat increase of payroll expenses to $4,400 a day. So prices will have to go up, at least 20%. Now comes the hard part for liberals to understand - EVERY SUPPLIER DOWN THE LINE HAS TO RAISE THEIR PRICES TOO. They all have someone in the distribution chain making less than $15 an hour, and they will have to raise their prices to cover the added costs. Sausage makes, bakers, farmers, the kids packing boxes full of straws, ALL of those companies who pay anyone less that $15 and hour now have to raise their prices too. If the cost of all the consumables (food, pages, wrappings, straws, etc) is about $4000 a day, it will go up at least $1000, and probably more. For this example, lets say it goes up $1,500. So now there is an additional $3700 a day expenses. There is no place to cut costs, so you have to raise prices at LEAST 35%. So now that $7 meal is $9.50. But what if fewer people come now that the price is so high? The owner has two choices - raise prices even more and hope people keep coming, or cut staff. And if customers decide that $11.00 is too much for a Big Mac, fries and a Coke, then he may have to shut down. Thats what will happen. And to thousands of businesses, not just fast food places. And I am sure Obama has been told this, but his goal is to make people more dependent on the government, so he is OK with $10 Happy Meals, because his kids eat arugula or salmon or whatever, and likely have never paid for a meal in their lives.
Posted on: Sat, 01 Nov 2014 13:58:06 +0000
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