Join Early Retirement Today
Closed Thread
 
Thread Tools Search this Thread Display Modes
$15 dollar fast food wages
Old 09-04-2014, 05:44 PM   #1
Full time employment: Posting here.
dtbach's Avatar
 
Join Date: Apr 2011
Location: Madison
Posts: 753
$15 dollar fast food wages

Was thinking of buying some McDonald's but think I'll wait to see what happens with this.

Don't get political but what chance do you think this will come to pass?
__________________

__________________
Wild Bill shoulda taken more out of his IRA when he could have. . . .
dtbach is offline  
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-04-2014, 05:57 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,294
Quote:
Originally Posted by dtbach View Post
Was thinking of buying some McDonald's but think I'll wait to see what happens with this.

Don't get political but what chance do you think this will come to pass?

Slim to none.... at least in the short run....


I think in the long run it will eventually get there... heck, I remember a $1 something minimum wage.... who woulda thunk that it would almost get to $8 back then....
__________________

__________________
Texas Proud is online now  
Old 09-04-2014, 06:12 PM   #3
Moderator Emeritus
 
Join Date: Oct 2007
Posts: 4,929
Meh. Wages are about 7% of a franchisee's expenses. There are 6,399 company owned stores and 26,338 franchise stores globally. A change in wages impacts the company stores directly, but is unlikely to alter franchise fees significantly.

Bottom line: MCD still gets the fees, and is still selling supplies to all those franchise holders, and Western civilization isn't about to give up it's Big Macs and delicious fries. They still make money. They're growing almost as fast as the customers waistlines. Buy. Ideally, wait for peak fear and buy.
__________________
M Paquette is offline  
Old 09-04-2014, 06:13 PM   #4
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 16,579
Quote:
Originally Posted by Texas Proud View Post
I think in the long run it will eventually get there... heck, I remember a $1 something minimum wage.... who woulda thunk that it would almost get to $8 back then....
Agreed. My first job in 1967 paid $1.25/hour in a gas station back when someone pumped the gas, cleaned the windshield, and checked the oil.

According to this calculator that would equal $8.92 now. So $15/hour is a bit much, but perhaps not so in NYC. Of course, we didn't have cell phones, iPads, home computers, smart phones, or even central A/C that are "necessities" now. Okay, I'll grant that at least a home PC is necessary now - hard to apply for a job at even Mickyd's without one - but a low end one is $300.
__________________
I heard the call to do nothing. So I answered it.
Walt34 is offline  
Old 09-04-2014, 06:15 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 5,202
Quote:
Originally Posted by Texas Proud View Post
I think in the long run it will eventually get there... heck, I remember a $1 something minimum wage.... who woulda thunk that it would almost get to $8 back then....
Anyone who understands inflation?

It won't jump that high, that quickly (to $15, within the next year or two).
__________________
RunningBum is offline  
Old 09-04-2014, 06:23 PM   #6
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,613
Quote:
Originally Posted by Walt34 View Post
Agreed. My first job in 1967 paid $1.25/hour in a gas station back when someone pumped the gas, cleaned the windshield, and checked the oil.

According to this calculator that would equal $8.92 now. So $15/hour is a bit much, but perhaps not so in NYC.
True. That said, if you make adjustments for employee productivity, depending on your methodology (or spin), you could argue for as much as about $22 per hour. That (IMO) requires some unrealistic assumptions about the global economy and job market, but the average US worker is 2-3x as productive in terms of economic output per hour than they were 40-50 years ago. Yes, much of that is automation, not labor, so it's a bit "out there" to suggest a $20 minimum wage.

Almost any way you look at it, in realistic terms the current $7.25 minimum wage is lower than it's been for at least 50 years. And you could make a reasonable argument that it should be adjusted a little *more* than inflation given productivity and corporate profit growth. But one needs to be careful about asking for too much too soon. The details of that start to get too political to get into.

My first job was as a stock clerk at a drug store in 1983 when I was in college. My starting wage was $3.75 when the minimum was $3.35. By the time I left it for my first "career job" in 1987, I was up to $7.25, where the minimum is today. But there are a lot of different ways to try to peg the current minimum wage to past levels and all of them are considerably more than $7.25 in current dollars. And $3.35 (let alone $3.75) was quite a bit more in 1983 than $7.25 is today.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline  
Old 09-04-2014, 06:38 PM   #7
Thinks s/he gets paid by the post
zinger1457's Avatar
 
Join Date: Jul 2007
Posts: 1,455
Like most negotiations you start off by asking for a lot more than you would be willing to accept.
__________________
zinger1457 is offline  
Old 09-04-2014, 07:16 PM   #8
Full time employment: Posting here.
dtbach's Avatar
 
Join Date: Apr 2011
Location: Madison
Posts: 753
Quote:
Originally Posted by zinger1457 View Post
Like most negotiations you start off by asking for a lot more than you would be willing to accept.
I'm pretty sure that this is the idea for the unions supporting this. But I feel that a lot of these folks actually believe that they are worth $15/hr and are entitled to it.

Anyway, this will be interesting to watch and compare to the "Occupy Wallstreet" movement that didn't quite go anywhere.
__________________
Wild Bill shoulda taken more out of his IRA when he could have. . . .
dtbach is offline  
Old 09-04-2014, 08:34 PM   #9
Thinks s/he gets paid by the post
imoldernu's Avatar
 
Join Date: Jul 2012
Location: Peru
Posts: 4,616
No guess on the Minimum Wage, but on the long ago wages:

1958 as a Shavetail Lieutenant going through OCS at Ft. Benning, monthly "wage" was $220/mo... "w*rking about 80 hours per week in the training course, that would make the rate... $.69 per hour.
Even with PX priveliges and some housing subsidy, a tight budget for me and my (then) pregnant wife.

"the good ole days"
__________________
imoldernu is offline  
Old 09-04-2014, 08:38 PM   #10
Full time employment: Posting here.
martyp's Avatar
 
Join Date: Sep 2010
Location: Bangkok
Posts: 963
I also don't think they are going to see $15 any time soon but I think there might be a possibility of an increase in the Federal minimum wage phased in over time.
__________________
Happy, Wild, and Free
martyp is offline  
Old 09-04-2014, 08:41 PM   #11
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 16,579
Quote:
Originally Posted by martyp View Post
I also don't think they are going to see $15 any time soon but I think there might be a possibility of an increase in the Federal minimum wage phased in over time.
I would certainly hope so. Ignoring the effects of inflation in law as in anywhere else is simply foolish. I don't see where anyone is "entitled" to a cheap Big Mac. Generations of people somehow, despite the hardships, managed to survive without them.
__________________
I heard the call to do nothing. So I answered it.
Walt34 is offline  
Old 09-04-2014, 09:22 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Apr 2013
Posts: 5,606
To the OP,
I don't see a wage hike as being the reason MCD has been getting cheaper. They have other bigger problems(IMHO).

On minimum wage, I always thought it was just that, a minimum. If I wanted more it was up to me to do more, get schooling, better job... The wage may need to be raised, but probably not to $15.00 now.

Sent from my SAMSUNG-SGH-I337 using Early Retirement Forum mobile app
__________________
MRG is online now  
Old 09-04-2014, 09:23 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,294
Quote:
Originally Posted by ziggy29 View Post
True. That said, if you make adjustments for employee productivity, depending on your methodology (or spin), you could argue for as much as about $22 per hour. That (IMO) requires some unrealistic assumptions about the global economy and job market, but the average US worker is 2-3x as productive in terms of economic output per hour than they were 40-50 years ago. Yes, much of that is automation, not labor, so it's a bit "out there" to suggest a $20 minimum wage.

Almost any way you look at it, in realistic terms the current $7.25 minimum wage is lower than it's been for at least 50 years. And you could make a reasonable argument that it should be adjusted a little *more* than inflation given productivity and corporate profit growth. But one needs to be careful about asking for too much too soon. The details of that start to get too political to get into.

My first job was as a stock clerk at a drug store in 1983 when I was in college. My starting wage was $3.75 when the minimum was $3.35. By the time I left it for my first "career job" in 1987, I was up to $7.25, where the minimum is today. But there are a lot of different ways to try to peg the current minimum wage to past levels and all of them are considerably more than $7.25 in current dollars. And $3.35 (let alone $3.75) was quite a bit more in 1983 than $7.25 is today.

I do not think there has been much productivity in fast food over the last 50 or so years.... back then they could get our burgers out pretty fast...
__________________
Texas Proud is online now  
Old 09-04-2014, 09:31 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2004
Posts: 11,617
The amount of a worker's wage should be negotiated between the two parties involved: The employer and the employee. Who else knows (and rightly has the standing to dictate) what the labor is worth to those two parties?
__________________
"Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein
samclem is offline  
Old 09-04-2014, 09:43 PM   #15
Moderator Emeritus
aja8888's Avatar
 
Join Date: Apr 2011
Location: The Woodlands, TX
Posts: 7,186
I go to Midland, Texas fairly often. It's the biggest oil boom in Texas right now. My clients tell me that fast food places in town are paying at least $15/hr to get help. The same goes for Walmart I heard.

Certainly not a national thing, but is situational.
__________________
aja8888 is offline  
Old 09-04-2014, 09:57 PM   #16
Full time employment: Posting here.
dtbach's Avatar
 
Join Date: Apr 2011
Location: Madison
Posts: 753
Quote:
Originally Posted by aja8888 View Post
I go to Midland, Texas fairly often. It's the biggest oil boom in Texas right now. My clients tell me that fast food places in town are paying at least $15/hr to get help. The same goes for Walmart I heard.

Certainly not a national thing, but is situational.
supply and demand at work. Probably same situation in North Dakota. But in average town USA, supply and demand seem to be about right at standard minimum wage.
__________________
Wild Bill shoulda taken more out of his IRA when he could have. . . .
dtbach is offline  
Old 09-04-2014, 09:57 PM   #17
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,151
Quote:
Originally Posted by aja8888 View Post
I go to Midland, Texas fairly often. It's the biggest oil boom in Texas right now. My clients tell me that fast food places in town are paying at least $15/hr to get help. The same goes for Walmart I heard.

Certainly not a national thing, but is situational.
Yep. Even teenage babysitters are asking (and getting) $15/hr.

More troubling is the difficulty the towns and counties have in hiring and keeping local govt. employees, especially law enforcement. Why wear a badge and risk your life when you can make two to three times as much working in the oil patch?

Those boom towns are a different world...
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline  
Old 09-04-2014, 10:18 PM   #18
Thinks s/he gets paid by the post
ExFlyBoy5's Avatar
 
Join Date: May 2013
Posts: 1,977
Quote:
Originally Posted by dtbach View Post
I'm pretty sure that this is the idea for the unions supporting this. But I feel that a lot of these folks actually believe that they are worth $15/hr and are entitled to it.

Anyway, this will be interesting to watch and compare to the "Occupy Wallstreet" movement that didn't quite go anywhere.
This. Since a lot of union wages are tied to the minimum wage, an increase of the minimum wage would result in an increase in union wages.

Sent from my mobile device so please excuse grammatical errors.
__________________
Founder and Head Lounger @ The Life of Leisure Institute
Retired in 2014 at the Ripe Age of 40.
ExFlyBoy5 is offline  
Old 09-04-2014, 10:34 PM   #19
Thinks s/he gets paid by the post
Senator's Avatar
 
Join Date: Feb 2014
Location: Eagan, MN
Posts: 3,070
It will happen soon, althought it may be 5 years. There are millions of people that the most they will ever achieve is a fast food job. They need those jobs to be a career, not a stepping stone. It will be the way we keep America a 'fair' place to live.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is offline  
Old 09-04-2014, 11:09 PM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,983
It may yet be overturned or modified, but Seattle approved a gradual increase to a $15/hr minimum wage by 2018. Only about a quarter of Seattle workers will be affected, but we may get some insight into what a $15/hr minimum wage might do to a variety of industries (fast food, hotels, etc.).

And about 120 cities and counties have instituted living wage laws, many in the $12 to $15 range. http://www.nelp.org/page/-/Justice/2...AL.pdf?nocdn=1
__________________

__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is online now  
Closed Thread


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Retire early in declining industry with average wages Blux Hi, I am... 3 02-23-2013 10:52 AM
Do you like fast food for weight loss? DFW_M5 Health and Early Retirement 1 04-22-2012 12:48 PM
Health Insurance Tax = Higher Wages? easysurfer FIRE and Money 18 11-10-2009 11:10 PM
Questions, strong dollar or weak dollar ? frayne FIRE and Money 7 10-01-2007 08:59 PM
Fast Food must be Addicting. newguy88 Other topics 6 12-09-2006 10:15 PM

 

 
All times are GMT -6. The time now is 10:28 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.