The fast-food industry claims minimum wage law is costing jobs. Its numbers are fake

Nathan

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Link: The fast-food industry claims the California minimum wage law is costing jobs. Its numbers are fake

Business lobbyist Tom Manzo, touting misleading statistics

Here's something you might want to know about this claim. It's baloney, sliced thick. In fact, from September through January, the period covered by the ad, fast-food employment in California has gone up, as tracked by the Bureau of Labor Statistics and the Federal Reserve. The claim that it has fallen represents a flagrant misrepresentation of government employment figures.

Something else the ad doesn't tell you is that after January, fast-food employment continued to rise. As of April, employment in the limited-service restaurant sector that includes fast-food establishments was higher by nearly 7,000 jobs than it was in April 2023, months before Newsom signed the minimum wage bill.

Despite that, the job-loss figure and finger-pointing at the minimum wage law have rocketed around the business press and conservative media, from the Wall Street Journal to the New York Post to the website of the conservative Hoover Institution.

We'll be taking a closer look at the corporate lobbyist sleight-of-hand that makes job gains look like job losses. But first, a quick trot around the fast-food economic landscape generally.
More here.
 

I've always been amazed that when the minimum wage goes up, fast food places yell that they'll be forced to go out of business. They claim the public will not tolerate higher prices. Yet, when the prices go up and the minimum wage stays the same, somehow that's OK.
And this in an industry that used to have 15 cent hamburgers.
The Fast food industry had been doing some serious price gouging throughout the Covid 19 lockdown, and really jumped on the bandwagon with higher prices in the inflation aftermath of the pandemic. Now fast food chains in a price war in order to bring back customers.
 

I don't generally buy Fast food.... but a year or so back, I was out...hungry.. the only thing nearby was a Burger King. I haven't had burgers for years so didn't know the cost .... anyway I got a basic cheeseburger and a small bottled water and was charged £9.00... and it was actually all dried up and horrible, I threw most of it away...

OTOH... You can still get a basic Cheeseburger from MacDonalds for about £1.40..and with a small coke 99p
 
I don't generally buy Fast food.... but a year or so back, I was out...hungry.. the only thing nearby was a Burger King. I haven't had burgers for years so didn't know the cost .... anyway I got a basic cheeseburger and a small bottled water and was charged £9.00... and it was actually all dried up and horrible, I threw most of it away...

OTOH... You can still get a basic Cheeseburger from MacDonalds for about £1.40..and with a small coke 99p
I eat beef hamburgers no more than three times a year. Sometimes it's Burger King, but most times it's Wendy's. The best hamburgers we ever had was when my husband and I got them from a rest stop on the parkway when we were heading home from Atlantic City, N.J. We raved about that burgers for quite a while. When we got a chance to go again, the burgers we got weren't quite as good. Too bad your experience was so different HD!
 
I eat beef hamburgers no more than three times a year. Sometimes it's Burger King, but most times it's Wendy's. The best hamburgers we ever had was when my husband and I got them from a rest stop on the parkway when we were heading home from Atlantic City, N.J. We raved about that burgers for quite a while. When we got a chance to go again, the burgers we got weren't quite as good. Too bad your experience was so different HD!
I have eaten burgers all my life but not really in the last 20 years, they don't really appeal to me .... and as I said the Burger king prices are way too high for the quality.. shame because in the past I always preferred it to McD.. we don't have wendy's here we used to have Wimpy which was bigger than McD's but there's just a few of those left..they're burgers were the best.

I've eaten Burgers in every country I've visited at least once... We had burgers in Northern Italy from a street vendor, it was horse meat we discovered later but we were sick as dogs beforehand...
 
I have eaten burgers all my life but not really in the last 20 years, they don't really appeal to me .... and as I said the Burger king prices are way too high for the quality.. shame because in the past I always preferred it to McD.. we don't have wendy's here we used to have Wimpy which was bigger than McD's but there's just a few of those left..they're burgers were the best.

I've eaten Burgers in every country I've visited at least once... We had burgers in Northern Italy from a street vendor, it was horse meat we discovered later but we were sick as dogs beforehand...
I can't remember the last time I had a McD's burger. I've had White Castle burgers. Used to be a big thing in our area...cheap little burgers and the place, short drive to the next town, stayed open almost all night. We'd go after partying. I used to get the fish sandwich from McD's. Don't even buy those anymore. I only go for breakfast...mostly egg and cheese biscuit and rarely their pancakes, which are actually good. Their coffee is good too. Even my coffee connoisseur sister thinks so.

That's terrible that you got so sick. Once one gets sick like that from certain food(s), it's not likely they'd eat the same thing again. Definitely the case after what you experienced then found out !!
 
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Here's the thing. Let's assume the claim is true, and that rises in the minimum wage is costing jobs. So what?

Why would a society tolerate or want a business that does not pay a living wage? Why should McD or whomever, profit off the back of poverty wages? If the company can't pay the very minimum required to live, then what value are they to anyone?

Do we think it's okay to have a section of society being in working poverty for the profit of others? If a business model no longer works, then wave it goodbye and move on! Guess what - you'll still be able to buy food when you need it. The minimum wage is no joke, it's necessary. It's mandated because business won't do the right thing left to their own devices.
 
I don't generally buy Fast food.... but a year or so back, I was out...hungry.. the only thing nearby was a Burger King. I haven't had burgers for years so didn't know the cost .... anyway I got a basic cheeseburger and a small bottled water and was charged £9.00... and it was actually all dried up and horrible, I threw most of it away...

OTOH... You can still get a basic Cheeseburger from MacDonalds for about £1.40..and with a small coke 99p
All I remember about McDonalds in England was ordering a Coke and being asked why it was so hard for me to say "cola" then asking for ice and told it was already cold. Finally a little girl about five years old asked me why I didn't speak, "proper English." LOL I love little English children, I can't tell you how adorable it is to an American to hear these tiny children speaking such precise, perfect English in their sweet piping voices.:love:
 
All I remember about McDonalds in England was ordering a Coke and being asked why it was so hard for me to say "cola" then asking for ice and told it was already cold. Finally a little girl about five years old asked me why I didn't speak, "proper English." LOL I love little English children, I can't tell you how adorable it is to an American to hear these tiny children speaking such precise, perfect English in their sweet piping voices.:love:
How odd that they should ask you to say ''Cola''... when it's called coke here... :unsure::D

a couple of Christmases ago I posted a little video of the Christmas village at my local garden centre.. I don't know what enchanted the US folks on this forum more.. the little village or the fact they could hear the few little snippets from nearby kids...


here's that Video..... Everything Christmas
 
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Here's the thing. Let's assume the claim is true, and that rises in the minimum wage is costing jobs. So what?

Why would a society tolerate or want a business that does not pay a living wage? Why should McD or whomever, profit off the back of poverty wages? If the company can't pay the very minimum required to live, then what value are they to anyone?

Do we think it's okay to have a section of society being in working poverty for the profit of others? If a business model no longer works, then wave it goodbye and move on! Guess what - you'll still be able to buy food when you need it. The minimum wage is no joke, it's necessary. It's mandated because business won't do the right thing left to their own devices.
We can always check out Article 23 of declaration of human rights...
 
Who decided the minimum wage should be a living wage? When did that happen? If we want to require a living wage, then let’s call it that and discuss it like civilized people.

Is this a wage problem or a too high cost of living problem?
 
Not sure it would do any good. Are there really people out there eager to work for below minimum pay? As for unions, too many companies fighting the very idea!
Huh?
It somewhat depends on whether or not your jurisdiction is a signatory to the UNDHR, 1948.
 
This is an interesting thread. We mostly eat at home, but have a few favorite cafés & small restaurants. One is a co-op bakery with quite an assorted menu — vegetarian and meat dishes, pizza,, various sandwiches, coffee & juices. The others are owner-operated places rather than franchises. We almost never eat at the fast-food places.

Where we've observed the pinch of increasing minimum wage is when someone we know is attempting to start a business, and naturally the initial financing precedes the establishment of a clientele. Some businesses simply can't work, even during the initial start-up phase, with only the lone entrepreneur trying to perform all roles, six days a week. Affording minimum wage even for teenage help can sometimes make the dream impossible.
 
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This is an interesting thread. We mostly east at home, but have a few favorite cafés & small restaurants. One is a co-op bakery with quite an assorted menu — vegetarian and meat dishes, pizza,, various sandwiches, coffee & juices. The others are owner-operated places rather franchises. We almost never eat at the fast-food places.

Where we've observed the pinch of increasing minimum wage is when someone we know is attempting to start a business, naturally and the initial financing precedes the establishment of a clientele. Some businesses simply can't work, even during the initial start-up phase, with only the lone entrepreneur trying to perform all roles, six days a week. Affording minimum wage even for teenage help can sometimes make the dream impossible.
The way a business person would look at that is that they are under capitalized and had an inadequate business plan. It happens to a lot of people that try to start businesses. Isn't something still around 90% of all start ups fail in the first year?
 
The best way to earn more is to improve you skill level. I know a lot of people that has worked for. More later. Right now I have to make breakfast. I refuse to pay 5x more to get it at a fast food place.
 
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How odd that they should ask you to say ''Cola''... when it's called coke here... :unsure::D

a couple of Christmases ago I posted a little video of the Christmas village at my local garden centre.. I don't know what enchanted the US folks on this forum more.. the little village or the fact they could hear the few little snippets from nearby kids...


here's that Video..... Everything Christmas
Oh wow! It is enchanting!
 
This is an interesting thread. We mostly east at home, but have a few favorite cafés & small restaurants. One is a co-op bakery with quite an assorted menu — vegetarian and meat dishes, pizza,, various sandwiches, coffee & juices. The others are owner-operated places rather franchises. We almost never eat at the fast-food places.

Where we've observed the pinch of increasing minimum wage is when someone we know is attempting to start a business, naturally and the initial financing precedes the establishment of a clientele. Some businesses simply can't work, even during the initial start-up phase, with only the lone entrepreneur trying to perform all roles, six days a week. Affording minimum wage even for teenage help can sometimes make the dream impossible.

I certainly get that. But let's keep in mind the Minimum Wage is bracketed by age groups:

"A minimum wage of not less than $4.25 may be paid to employees under age 20 for their first 90 consecutive calendar days of employment, as long as their employment does not displace other workers."

Of course, each state gets to set its own Minimum Wage, so it will vary according to location. But isn't this the essence of having a minimum wage? If a business can't support that level at least, then really, is it a good business at all? I think, if it were looser than that, you'd have more companies taking advantage and paying lower than minimum wage in pursuit of more profit. It's a balancing act.

There are at least three levels of eating out - Fast Food, casual dining, and fine dining. Casual Dining, which you seem to like, will be more resilient.
 

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