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Fast food workers in New York City demanding higher pay because they say they needed workers -- walkouts at McDonald's.
Burger king and Taco Bell this week.
Let's move they hope will give them in nearly a 100%.
The final report of the minimum wage study commission found that every 10% increase in the mandated minimum wage results in a one to 3% drop.
So why exactly can't fast food restaurants afford to pay employees more let's ask executive director of the Center for Consumer Freedom Rick Berman Rick nice to see this morning they -- I worked at McDonald's I've made four dollars and 25 cents an hour when I wanted to make more money.
For the amount I work I was doing.
I decided I go -- and find another job and make a little bit more money.
Why not the case here.
You know there are people who claim that they can't get a better job and that the only way they're gonna get any increases to legislative.
Of course for most people let's not true.
But you've got people here in New York that are now claiming that unless they can have their wage doubled.
More than a 100%.
From seven and a quarter to fifteen dollars that unless they can do that that they can't live and of course most people are going to say well.
Then you need to get yourself a job where your skills if they're good skills will get you more money most people don't worry about the minimum wage.
These folks feel that the only way they're gonna get the increases -- in fact push for higher wages which.
Unfortunately doesn't really work -- the math doesn't work here.
So let's say the city -- -- The State of New York just decided we're gonna mandate that's we're gonna require that McDonald's say hey it's cashiers fifteen bucks an hour right -- McDonald's to.
Well first of all they're gonna go to more technology.
Secondly some of them are gonna go out of business you have to really -- -- -- don't replace workers will replace workers get it's it's already happened it happens slowly but it when you look at it over the country as a whole.
You're talking about millions of jobs eventually being.
Wiped out that's why you get your -- boarding pass and an ad at an airport it's why you -- your own guests today.
Little by little technology.
Takes care -- workers by pushing them aside.
Because at the end of the day it's the consumer that cares whether or not this thing is price that would have -- practice services whether it's -- properly.
Eric floss and his book fast food nation had argued that it makes more sense for these businesses.
To pay a higher wage the -- -- Starbucks does health benefits and -- higher wage than turnover doesn't happen so much and it actually costs that businesses laughs because there for them they're not spending to train new individuals every month because they go to get more money we've yet well.
-- it's it's -- stupid ridiculous argument I mean.
White is Eric's last or need to tell somebody that runs a business how to make the business more productive people that know it let it keep it there.
And and if they thought that they can price their product I mean Starbucks is selling.
Coffee that's a very different margins.
If you if you look at.
Apple for example.
Apple makes 400000.
Dollars per employee in profit.
If you look at and a family restaurant they make 2500 dollars per employee profit.
You can't -- wages across the board in every business like you can have some.
And -- -- policy.
The blank body and if you look at the fast food business.
To 30% of all your revenues devoted to these hourly labor costs.
So now they want a reason to fifteen -- that means that fifty to 60% of your revenue was labor costs and the consumer will pay for department thanks lot for joining us appreciate that -- got.
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