By John G. Schreiber III
This is how I had to explain the problem with raising the Minimum Wage to an idiot: It took a bit of time and explaining it several times to a Lib today but this scenario finally sunk in. Talking about raising Minimum Wage. I used a Co like McDonalds as a model. 1st realize according to public records McDonalds employs 1.7 million worldwide, Most of which are here in the US. Approx 1 million. Now about 50%+ are at starting wage. (Large turnover) So that makes 500,000 employees at around min wage. So the Gov comes and raises the wage by 2 dollars an hour. That is 1,000,000 dollars per hour across the board. That is $8,000,000.00 a day. For 8 hour shifts. Since many are part time we will average it to 30 hours a week. That is $30,000,000.00 dollars a week. Oh now let’s not forget Payroll tax cost increase, Unemployment tax, FICA increase to employer per employee. Now we’re in the area of on the low side $5,000,000.00 a week in employer taxes. So McDonalds must shell out a min of $35,000,000.00 a week more now. So where will they offset that $. You guessed it. Cost of product goes up. Some employees are fired, laid off or hours cut. Now since the cheap burgers are now more expensive they will probably see a drop in sales. Maybe, maybe not. But that little 2 bucks an hour has now drastically changed things. And since all employers would have to increase wages too. Most product costs would go up. So now that 2 dollar an hour raise is now not benefiting anyone. The cost of living has increased to offset the increase of wage. So the wage earner gets nothing. And quite possibly even less. And as History has shown over and over again it usually happens within a month of the increase. So, Mr. Obama, You’re an idiot. It won’t help anyone. But it will hurt millions. Take a course in basic economics after you take a course in Basic Math. And just shut up!!!!!!!
