McDuped: Why Fast Food Chains Are Inhumane
http://www.alternet.org/mcduped-why-fast-food-chains-are-inhumane
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But in the long run, increasing the pay of fast food workers raises the floor of the low-wage labour market. Other employers might have to pay more in order to compete with fast food companies and attract better workers, but in any case, the raise for fast food workers should be accompanied by policy measures to increase pay in all currently low-wage industries. This would givethe poorest workers in our economy more purchasing power, allowing them to pay more for a Big Mac - or for anything else.
That's what happens in high-wage countries, where fast food workers earn much more. Rather than go out of business, McDonald's finds ways to pay the workers. But also, patterns of consumption change when all workers are prospering. As The Atlantic reports , customers who make more expect more, so in Australia, where fast food workers do make $15/hour, consumers got espresso and McCafe way back in 1993.
A large body of economic research - from economists at the Economic Policy Institute, for example - shows that raising wages for poor workers benefits the whole economy by stimulating demand for goods and services. And why wouldn't it? When people make more money, they are able to spend more - and that includes being able to pay a bit more for a Happy Meal.
For too long, we've accepted the idea that low prices are necessary so that poor consumers can enjoy some basic necessities and indulgences. We accept that low wages for some are simply an unfortunate but inevitable consequence. In this uninspiring vision - a reality for much of America - poor workers endure substandard living conditions to subsidize other poor workers' consumption. But here's a better idea: pay all workers enough to live decently and to buy the stuff they want and need.