The logic is so very simple, why is it so hard to understand?
I avoided specifics as much as possible, but I think my math is right and the logic is actually very very simple
Seems like everyone worked at a McDonald’s in high school, it’s what you did to earn spending money. But today people are expecting these jobs to provide enough income to support a family.
Here’s why the federal government needs to stay out of the private sector.
The cost and revenue based on national averages, to own a McDonald’s.
2.6m in yearly Revenue (based on a national avg)
874.40 $ = Avg cost of 4 min wage workers for a 24 hour day @ 9.15 an hour (National average)
320,616 yearly wages for min wage staff
1440 $ = Avg cost of 4 min wage workers for a 24 hour day @ 15$ an hour (figuring peak and off times avg out to 4 workers)
525,000 yearly wages
15% take home for franchise owner (390,000)
12.5% to McDonalds corporate (325,000)
1.564m Profit (current national averages at 9.15 an hour)
1.36m Profit (at 15$ an hour)
So using some basic numbers based on average, as government forces wages to be raised on the private sector the take home for the franchise owner is reduced by 200,000 annually.
Where is the franchise owner going to make up that money? Certainly they’re not taking less.
Spend less on goods? Can’t ever afford to be ‘out’ of product so that’s not an option
Corporate take less? Not a chance, you’re bound by contract to pay them their 12.5%
So it’s one of two options
Raise prices enough to pass the 200,000 to us, the consumer OR
Reduce expenses via wages and/or insurance for FT employees.
Since the gov’t has created laws that force you to pay the wages, you cannot reduce cost without raising prices and/or eliminating salary.
Changing your Min wage hourly expense from 60$ an hour to 45$ an hour by eliminating “one employee” worth of expense each hour. That would likely mean a reduction of min wage employees from 12 (figuring 3 8 hour shifts of 4 people) to 9. Now remember that will likely be higher simply because a min wage worker CANNOT work more than 29 hours otherwise the owner is required to provide affordable health care coverage that meets minimum requirements, or pay an annual penalty (known as the “shared responsibility” penalty).
So you would need to create 672 hours of minimum wage work with 29 hour work weeks. That’s an average of just over 23. So 23 part time employees making min wage would make up the staff.
29 hours a week at 15 an hour is 435$ a week or 22,620 in annual salary
Which means 8.8 workers would need to be fired to reduce salaries 200,000 annually.
So no, raising min wage does not and will not ‘boost’ the economy because the companies liberals all try to use as examples are NOT hourly pay companies.
It’s also the very HEART of small business in America.
One more VERY important point. If you kept the averages, and said that 8, not 9 but 8 folks were fired to make this work $$ for the owner.
What is that? That’s the number of jobs lost as 14,267 McDonalds reduced staff to offset the dramatic increase in the min wage.