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$15 Minimum Wage for Fast Food Employees? Not Here.

Written by Gary North on August 8, 2014

There is an economic category called the substitution effect. See it in operation here.

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30 thoughts on “$15 Minimum Wage for Fast Food Employees? Not Here.

  1. Kdenney1 says:

    Automation will replace some people but not soon! The Demon Rats think leisure time is great unless you realize you starve to death !!!

  2. So much for $15 an hour burger flippers. Dumbasses.

  3. CrustyOldGeezer says:

    That whole starve to death thing occurs shortly after running out of other peoples money.

  4. Wild Thing says:

    That is what certain people in certain fields thought 30 years ago too. For example: Draftsmen have been replaced by computers.

    Do try and catch up.

    Those operating the cash registers today can barely count. Now days, the computer (cash register) tells them how much change to give back to the customer. They don't even have to know how to think.

  5. Kdenney1 says:

    So you are saying that people have been replaced but they give change?? Maybe your right some NEED to be replaced!

  6. Shame that these "$15 an hour" people were not into teaching Cashiers to "Up Sell", something I had to do at McDonald's. Encourage the customer to order a drink or dessert.


    God save me from Economic illiterates.

  7. The White House (Obama) and the Democrats have proposed a minimum wage increase from $7.25 / hour to $10.10 / hour.
    Our Congressional Budget Office (CBO) has analyzed this proposal for us.
    The CBO says this will affect 900,000 workers.
    The CBO also says we will lose 500,000 of those jobs.
    I’ve done some math; here it is:

    -900,000 jobs @ $7.25/hour (the current minimum wage) = $ 6.25 million per hour to minimum wage earners.
    – 900,000 jobs @ 10.10/hour (the proposed minimum wage) = $ 9.09 million per hour to minimum wage earners.
    – However, the CBO projects we will lose 500,000 jobs if this is enacted.
    – With 400,000 remaining minimum wage earners, the total $ going to these earners will be reduced to$4.04 million per hour; a 35 % reduction in $ for minimum wage earners. What a deal! Why would Obama and the Democrats propose such a thing? Is that why they want to bring in the illegal immigrants? Are the Democrats getting big campaign bucks from very large employers?

  8. Yes and many of the draftsmen learned how to use Autocad, which requires a human to tell it what to do, so I'm not sure if your analogy is appropriate.

  9. I got it! Let’s make the minimum wage $100/hour. Let’s give everybody an across-the-board 500% raise and the Fed can print enough paper to make everybody rich!

  10. I don't understand why people are so worked about the class of mostly hard working minimum wage people having an increase in the minimum wage…..It is way too low for today's market. At least these people are willing to work, so why shouldn't they be paid a few more $? They will have a better life and pay more in taxes, even if it is just FICA and Medicare, which will help our Social Security System, and state and local taxes, The employers will have a higher write-off on their business taxes and it's NOT like these large fast food chains and stores like Walmart aren't able to pay them more. As Jesus said, "the poor you will have with you always." He certainly taught love of God First, and then love your neighbor, ( which meant other people, not just in you neighborhood,) as you love yourself. How about the wealthy realizing that giving a few of their dollars to help those among us who are struggling – with that Love from God?

  11. One of the effects of a mandatory minimum wage is what happened in Puerto Rico and Hawaii with the sugar cane. When the company has to pay that wage to _all_ employees, including the harvesters, they close the plantation and move to where the cheap labor is at the time. Most of our sugar cane and pineapple now comes from the Philippines. Those sugar cane plantations are now luxury resorts. In short, a minimum wage kills jobs for those most in need of them.

  12. "At least these people are willing to work, so why shouldn't they be paid a few more $? They will have a better life and pay more in taxes, even if it is just FICA and Medicare, which will help our Social Security System, and state and local taxes, The employers will have a higher write-off on their business taxes and it's NOT like these large fast food chains and stores like Walmart aren't able to pay them more."

    The rub is "how much more"? Up to $15.00? Seriously? There are factory and technician jobs that do not pay that well.

    I'm a former Minimum Wage worker. I was not responsible for anything. I had no latitude at all to do anything but what I was told to do, when I was told to do it in exactly the right way. I was a robot. Initiative was not wanted, not needed and was discouraged.

    I had no incentive to grow my skills because minimum wage pulled all workers "towards each other" as an attractor. If I wanted to do better I had to find a better job.

    The core issue regarding Minimum Wage is that the Government sets the wage. The Minimum Wage is Price Fixing.

    Many businesses pay better than Minimum Wage.

  13. Big Macs costing $20.00 to $50.00. A beer costing $50.00 a glass. Night on the town costing $1,000.00 minimum.

    It's about value and what people/the market are willing to pay.

    I do not understand why a first class school teacher makes less money than a famous Comic or Basketball player. I do understand that people will pay enough to make their wages different.

  14. they don't have to give change,have you ever seen the self service registers at a grocery store,one person to watch six os them.that's five jobs lost. mcdonalds has the same technology.you place the order on a touch screen then pay on an atm like device

  15. wiltedrosemarybush says:

    Piker! Make it $1,000,000/hour!!! Everyone will be a millionaire!!! Won't that be wonderful?!?!?

    After all, with paper and ink (let alone with bytes) we can print an infinite supply of money – heck, we could even have One Googleplex Notes, if we want!!! When oh when will democrats/progressives/communists, etc. figure out that you can't print an equal amount of actual material *wealth* to go with it…

    There is a reason they are called "Libtards"…

  16. AFL Ciao says:

    You have point, in that the jobs do move out…that is if labor is a great part of the business equation. Many service industries are very heavy with labor, such as sewing factories, assembly line operations, landscaping and the trades. So when these labor costs are too great they move them not just out of the county, or state, but out of our nation. THAT is why so much manufacturing has gone overseas. The unions killed the jobs for many skilled laborers. The very reason our clothes and home items are cheap (a la Walmart, Target, big box stores) is because of the labor cost savings. I sure as hello don't want to pay 50-100 bucks for a white dress shirt. And that is why our domestic industries have closed. Labor unions got out of hand.

  17. wiltedrosemarybush says:

    If you do not understand "why people are so worked up about… an increase in the minimum wage" then you plainly do not understand economic reality, let alone the concept of what money is. You have no idea what it takes to run a business. The sole reason businesses exist is to provide profits for the owner, not "jobs". If the owner can no longer make a profit, than the business and the jobs associated with it will no longer exist.

    Here's a homework assignment for you, Jim. Do some research into what it takes to actually start a business. Look up the concepts of payroll taxes, unemployment insurance, registration/licensing fees, employee health coverage, and minimum wage laws, and add it all up and tell us how much it costs to employ one minimum wage worker for a full time (we'll say 40 hours/per week for this exercise). Then take a stab at how much raw materials cost to supply products for the business (foodstuffs for a restaurant, lumber for a furniture shop, steel for a machine shop, etc.). Next, figure out how much corporate tax you owe per quarter (hint: you don't file only on April 15th…) Finally, figure out how you, as the owner, make a profit after all this, and ask yourself just how much effort you really want to put into starting a business and hiring employees.

    Go ahead. Let us know when you're done.

    Here's the problem, Jim. To you, jobs are magical things, that are produced by wizardry to provide you with income and something to do with yourself during the day. You have absolutely no clue what goes into running a business and thus no appreciation as to what happens when nitwits like you start blathering about "fairness" and "paying a few more $." It's a business, not a charity. When some libtard politicians manage to increase minimum wage, the concept of which is utterly stupid, a business must do one, some or all of the following to remain in business: lay off workers so the remaining can enjoy a bigger paycheck (and corresponding increase in workload), cut production costs by cutting quality/quantity of product, increase price for product, outsource to a cheaper location (usually outside the US) or replace some workers with automation. Note also that this also forces businesses to NOT hire a lot of poor people to being with. How, pray tell, does this help the workers you are so concerned about? Answer: It doesn't. I wish you libtards would comprehend reality. It would help out EVERYONE – especially the "poor" that you pretend to be so concerned about.

  18. Now days people writing comments can barely write English. Nowadays ain't what it used to be, I guess!

  19. Wild Thing says:

    The point is employees who cannot even count change do not deserve $15 an hour. They really don't deserve what they are getting now.

    there was a time when one ran a cash register that one had to at least be able to count. No more, the register does it for these dumb azzez.

  20. Wild Thing says:

    why not just give everyone $1,000,000 tax free? Forget about working.

  21. Holy Shirt says:

    Some cannot spell — like Kdenney1's 'your' in place of 'you're'; others cannot type — like harry's 'os' in place of 'of'. Government failure to train its public school students to think critically may make them easier to control, but low expectations and diminishing returns leaves those societies 'on the skids' all too soon. For what other reason would U.S. voters fill Washington with IQ's so low they must look up to look down?

  22. Wild Thing says:

    And many draftsmen did not and could not learn Autocad and lost their jobs.

    The point is burger flippers, and cash register attendants do not deserve $15 and hour. And neither do those who clean the bathrooms in public buildings. What they do is not rocket science.

  23. Wild Thing says:

    It has nothing to do with love your neighbor. It has nothing to do with paying more taxes.It has nothing to do with God.

    These large fast food places are mostly franchised to individual people, and are not owned by the large fast food companies.

    Also, if Walmart paid these people $15 an hour, they would have to raise the prices on their products in order to stay in business, and that would defeat Walmart's entire purpose of being in business.
    Do you really think if the prices are raised at Walmart by a significant amount that people are still going to buy at Walmart? If people don't buy, then there goes your minimum pay, and your job.

    You ideas may sound lofty, but in the long run you would be putting many of the minimum pay people out of work.

    I will give you a hint. People are not in business to provide you with a well paying job, they are in business to earn a profit on their investment.
    A employee is an investment, and if you do not return a profit to the business, you are gone, out the door.

    It does have to do with the fact that many small businesses cannot afford to pay these people $15 and hour. In many cases, if they do those jobs will be gone, and many small businesses will be closing their doors.

    I guarantee you that the small business owner works much harder and puts in way more hours than these minimum pay employees.

    Did you not learn anything from the Hostess Debacle and the unions demanding more money? Hostess shut its doors.

    Jesus never tried telling a business how much to pay their employees.

  24. Wild Thing says:

    these people wanting higher minimum pay must be Democrats. They can only think with their emotions, and that is not thinking logically.

  25. Bama Bill says:

    But they pay more income tax, so Govviemint has more $ to spend. And the 10 cent McD's burger in 1957 is now $1, and my 1966 Mustang cost $2,640, now over $26,000. The 3Br Ranch cost me $15k in 1968, can you find one for $150k now? Look forward another 50 years, and $250,000 Mustang, $10 McD's burger, 1.5 Mil house. And your income tax rate will be, more than you make! Who benefited, the IRS and the "Tax and Spend" gang. I have fought the 10% college boys all my life. But they keep preaching, "We will cut costs 10% per year", "Increase production 10% per year", same for profits. Has never happened, but they learned it in college, must be right! NUTS!

  26. Bama Bill says:

    Because the union is controlling the salary, and can get that much from HollyWierds, sports stars, and get the city to spend millions for the stadiums. Property tax payers, I.E. homeowners, can't and won't be gouged that much. The unions killed our manufacturing, in 1990 about 40 states had the main job of manufacturing. Today there are only 7 states that manufacturing is the top job. Can you say, "Thank You Unions"? Wake Up America!
    "Beam me up Scottie, there's no intelligent life down here!"

  27. Bama Bill says:

    Did you know that Mr. George Soros owns Barry? With almost 700 Billion dollars, he is the wealthiest man on earth? He owns over 2,000 liberal organizations, and lives in China. With a mansion that has very high walls, and several guards armed with fully automatic rifles. He "Broke the Royal Band of England" back about 1975, that is when the U.S. Dollar became the Intl. Exchange Currency. He made billions on that deal. Now almost all of Walmarts goods are made in China, and shipped on the worlds largest container ships, that are made guess where? China. Can you figure the rest of his plan out?

  28. Bama Bill says:

    "Royal Bank", sorry!

  29. Bama Bill says:

    Simple! They don't even teach how to balance a checkbook in high school, and few can do addition without a calculator. And how to make a budget? Hell, the teacher can't even spell it, let alone teach it. Sorry teacher, if there is one that teaches this, but I haven't heard of one yet.

  30. Bama Bill says:

    McD's burger was 10 cents in 1957, is now $1, so in 50 years it may be $10. But I only paid $2,465 for a new 1966 Mustang, V8, 4spd, loaded. And made $120/wk, $110 take home. Can you tell me you are better off now? It only took about 26 weeks pay for the car. Now how long for a loaded Mustang GT? I just priced out the car today, $34,000. I worked at Kroger's as a night stock clerk then. Now can you bring home $78,000 a year working as a stock clerk at Kroger's? So you are NOT better off, and it will only get worse.