Wages go up then prices go up, right?

[kentuck]

[Glassunion]

1. Well fucking duh!

I remember reading an article recently from the "we're billionaires, so you don't know what you're talking about" restaurant consortium, or some bullshit. The spokesperson said something along the lines of "if we raise wages, McDonalds may have to raise prices on their dollar menu to $1.25". Oh the HORROR! Someone may have to pay a buck twenty five for a McChicken!!! The economy will collapse in 20 seconds or some shit.

[Cleita]

2. Nope. I managed a hamburger joint and saloon once.

In that decade, the seventies, I believe we had three minimum wage raises. Never once did we have to raise the price of product for that. What we did have to raise prices for was when the cost of our product was raised. For instance if the cost of buns went up we had to add to the price of the hamburger. Payroll was a large expense, but cost of goods was the highest and that's what mostly affected the retail price of our products. Other cost factors like rent, etc. and payroll seldom had an effect.

[brewens]

5. Yeah, because better paid people could afford to hang out at your joint and spend a little more.

They always claim any increase, taxes or wages, will be passed onto the consumer. Not necessarily. They can't raise prices so much that it will cut demand. They do that and it will backfire on them and they will lose money. Sometimes they just have to eat it!

[mmonk]

3. Market. You can see that in his salary.

[Laelth]

4. k&r for exposure. n/t

-Laelth

[Zo Zig]

6. What the...

Even Henry Ford(hater) understood this.

[99Forever]

7. Bingo.

Time for the corporate swine to be brought down. ALL of them.