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Originally Posted by Mavdog
the data is not deep. it is not complete. it is not thorough. it is not irontight. that is why I refer to it as a "snapshot".
yet it is indeed relevant. if there were a true and absolute connection between the increased minimum wage and the unemployment rate increasing there would be SOME exhibition shown.
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Wrong. You can compare apples to oranges all you want. They're still apples and oranges.
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you didn't "speculate", you made a claim with no basis. why couldn't the business increase its sales volume? why couldn't the workers produce more output?
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Your assumption is that if the minimum wage were increased by over $2.00 per hour, McDonalds would simply start selling more hamburgers to compensate. My assumption is that if the minimum wage were increased by over $2.00 per hour, McDonalds (talking about the average local franchise, not the multinational corporation) couldn't sell enough burgers to compensate for the increase in labor cost. Without some information regarding the budget of a local franchise, we're both just shooting from the hip, so don't act as if you're speculation is more informed than mine.
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ok, I'll speculate...the increased pay to the lower wage workers, a large segment of the consumers for the low priced meals in mcdonalds, would produce an increase in spendable dollars which corresponds to an increase in demand for burgers, resulting in increased sales volume for the average unit. increased sales would absorb the increased labor costs with net margins remaining static.
ok, now you speculate too...
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So the minimum wage worker at McDonalds helps cover the increased cost to employ him by buying more Quarter Pounders? What good does that do? With all of those extra Quarter Pounders consumed, you better hope they're offering health insurance...
