Earlier quoted context omitted.
A 10% margin also often doesn't tell the whole story of how they make their money. Nearly since its inception, a substantial portion of McDonald's long term profit came from the appreciation of the real estate the stores were built on. Operating a business on it just made it cash flow positive during the holding period. So it was essentially a REIT that happened to operate a fast food chain. Even for many mom-and-pop…
>If they honestly can't afford to pay a living wage It's not logical to kill businesses by arbitrarily raising the minimum wage. Do you think the people they employ are better off not working at all? These people may not have a decent enough salary, but they get to work as opposed to staying at home and degenerate (mentally and physically). I always thought the better solution is to help them financially in other way…
Re: Labor shortage or terrible jobs?
#1001I think negative taxes are a great solution. Provide people with enough for the basics and incentivize them to entering the labour pool. I think even ($1/hr + training + negative taxes) is much better than people being unemployed and 100% reliant on the government.