The minimum wage is nothing if not a hot topic throughout the U.S.

Five states let businesses dictate their minimum wages, but the vast majority have set it above $7.25 an hour.

A recent study has shed some light on the issue from an interesting angle. When it comes to a minimum wage increase, who is footing the bill?

The research pointed at McDonald’s and how they dealt with a mandatory minimum wage increase throughout different states.

Unsurprisingly, Ronald McDonald’s upper-echelon (i.e., those who run the company) are not paying for it out-of-pocket. Instead, they transfer the extra costs to the customer. Who would have seen this one coming?

So, for every minimum wage increase, you are forced to pay a McWage – but you don’t get fries with that one.

You would think that they would just introduce more touch screen machines so that you can place your own order, right? That’s not the case according to the study.

“We also find that McDonald’s restaurants do not introduce touch-screen ordering, a potential labor-saving technology, in response to increases in labor costs driven by minimum wage hikes. Moreover, we find restaurants are able to pass nearly all of such labor cost increases onto their customers in the form of higher Big Mac prices. As a result our evidence indicates that the elasticity of Big Macs per hour of Basic Crew work (a real wage measure) is 0.54, which is substantial, but about one-fifth lower than the 0.68 McWage elasticity.”

And, of course, the government gets a little cut from the extra tax revenue!

Simply put, corporate stays rich, the government gets more money; in the meantime, the working man fights for scraps. Remember, no one benefits from minimum wage laws like the government does. It’s going to cost everyone in the long run because everything will cost more, but people will be poorer because they’ll have to pay more taxes.

Daniel

Daniel is a conservative syndicated opinion writer and amateur theologian. He writes about topics of politics, culture, freedom, and faith.

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  • they should just use contract employees and pay them a small percentage of each burger sold during their shift, and by pass salaries entirely

  • m wage, schminimum wage. The author of this piece displays complete ignorance of anything even related to economy! Try to understand that the consumer pays for all of anything they buy! oof dah!

  • We already pay more for less in many cases. so what is the big deal about McDonalds. My favorite take out has kept the price the same (last time I went there) but there was a LOT less food in the box.

    I don’t know how anyone can vote Democrat in the face of the mess they have already made when it comes to OUR money. Now they plan on increasing taxes, have the IRS watching every bank account that has $600 in it. All of these when the Democrats are spending trillions of our tax dollars on things that are not necessary. Add in the open borders and thousands and thousands of people we will have to feed and house, and some taking away jobs that are necessary for some American citizens to have enough money on which to live..

    “The Little Man” loses once again to government spenders. Unless we are at war there is no real reason in this time of inflation and Covid 19 that our government should be spending trillions of dollars on things that will not help the American people.

    As a former NEVER EVER TRUMP, I say bring him back. We the people are hurting because of this governments terrible decisions, including wasteful ideas:, open borders, pipeline shut down and gas prices up because of it, and add in rampant inflation.

    How many Americans are hurting, and possibly homeless, because of what this regime is doing. Inflation and thousands of people we will have to take care of, all when many Americans are just handing on by a string because of the failed policies of the Biden Admistration.

    • I agree that we need Trump back. I knew that the Biden Admin would put us in a major mess but even I didn’t expect it to be so bad so quick.

      Thank you for recognizing that Trump wasn’t nearly as bad as this, it takes a strong person to do so.

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  • Wow ! Who knew that businesses would pass on to customers the higher costs of operation ? What ever happened to ” They can afford it.”

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  • What did you think would happen if the minimum wage is increased. McDonald’s has every right to raise prices. If you don’t like it you don’t go there. They can put the price as high as they want. If people stop buying then they will drop the price. It’s what the market will bear.

  • Economics 101: All costs are paid by the ultimate consumer. Any expense a producer must incur to produce and market a product, including taxes, will be paid by the person/group that consumes or uses the product.

    McDonalds is doing what every other business is doing. Nothing unique about it.

    I bet a Big Mac will cost $10 by Christmas.

    I do not want to think about what gasoline will cost by then.

  • “For the “LOVE” of MONEY” is the “ROOT” of all evil:” 1 Tim 6:10 KJV (ONLY) That is the problem and will be the problem! NOT the money but the LOVE of money! That begets Power/Control and wars and fighting etc That LOVE destroys men and nations!!