Reply To: question for democrats (and i guess anyone else that wants to chime in)

Home Forums Decaffeinated Coffee question for democrats (and i guess anyone else that wants to chime in) Reply To: question for democrats (and i guess anyone else that wants to chime in)

#1145026
ubiquitin
Participant

Coffee

Economics is not quite as simple as you lay out. Mcdonalds doesn’t just add up the cost of a burger add some profit and charge that amount. There is also an element of them charging what they think they can get for it. If they think they would sell just as many burgers charging $1.50 vs $1.00 of course they would charge the $1.50! So increasing the minimum wage wouldn’t automatically increase the price. It’s not like the reason they dont charge the extra 50 cents is out of the goodness of their hearts to provide cheap burgers.

In other words the reason they charge a dollar for a burger instead of 1.50 is not just based on how much a burger cost them. It is far more complicated than that.

What might happen though is increasing the minum wage would put more money in the hands of the “burger buyers” thus letting them spend more for burgers thus increasing the price of the burger.