California fast-food workers’ minimum wage win stirs up old economic debate
audiomodder @ audiomodder @lemmy.blahaj.zone Posts 1Comments 330Joined 2 yr. ago
audiomodder @ audiomodder @lemmy.blahaj.zone
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This argument has always been absolutely ridiculous. McDonald’s doesn’t set prices based on their costs. McDonald’s sets their prices based on what people are willing to pay. Why would they charge $4.80 when people would be willing to pay $5.15? That would be an extra $.35 profit if they charged more with no increase in costs.
While this means that there will be less profits, the worst case scenario is that fast food places determine that they can’t make profits and will shut down. They’ll use this as an excuse to bump their prices to more than compensate for their lost profits.