Organizers are planning a job action tonight in Milwaukee to help McDonald’s understand that its recent decision to raise the starting minimum wage to $10 per hour just is not sufficient. They will demand that this $10 per hour number be increased by 50% to $15 per hour. This is simply another of the marches that are occurring around the country aimed at the magic $15 per hour number.
There are very few economic scholars in this group of organizers, or so it would appear. A 50% increase in the minimum would trigger demands from others who might be above that minimum number but who would believe they too deserve more, and on the basis of equity and fairness that might be true.
Then, of course, there are those people who risked in the first place by buying the franchise rights and building the stores and staffing and grinding out the work of gaining market share while managing to make some profit.
So, if the owners give in to the demands for a $15 per hour minimum, how much do they have to increase prices in the very competitive world of ‘fast food’ in order to make it all work and to provide a margin of profit? Where is that magic line where price increases translate into lost business? McDonalds has already had some tough patches with all the competition in that world. I doubt that, even if the owners wished to provide a $15 per hour minimum wage, they could afford to do so with the realities of the marketplace as those exist today.
Some in our country seem to be in a place today where socialistic thinking has supplanted reality, or at least that seems the case in the world of minimum wage workers. The people organizing these marches have likely no practical experience in the world of business. They simply believe it is unfair that some “fat cats” are doing better than the people at the bottom rung of the leader which they are just beginning to climb. That climb ideally will afford them the income to live, and eat and buy clothes and pay medical bills and find some kind of transportation if they live in other than an urban center.
These kinds of increases have historically come with promotions to higher level jobs, and in positions that require more than minimum skills. This disconnect aimed at those who seem unable to think their way through the questions is despicable in its use of the people it says it wishes to support. If this is such a great idea, why is it that communist governments have not been better for their citizens?
It appears the organizers are in this for self and nothing else. If that is not the case, then the organizers need some significant remedial training to help them learn how the real economic world works.
In the meantime, there are people who’ve been given a false sense of hope, and that feeds the beginning of chaos. In reality, chaos may be the ultimate goal of those behind this folly.