Why liberals know nothing about business

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#AMERICAISDEAD
Not too long ago, our resident Nobel Prize winner in Economics Desh regaled us with an analysis from a college student stating that by raising the price of a Big Mac by just $0.68 McDonalds could give its workers a raise.

Sounds good huh? I mean $0.68 isn't much is it?

But the flaw in their reasoning is that they presume McDonalds can just raise their prices and see no negative ramifications.

But let's think about this logically. If McDonalds were able to extract another $0.68 from patrons buying Big Macs wouldn't they do it? Lets look at the numbers shall we?

McDonalds sells 550 million Big Macs a year in the US.

$550 million x $0.68 = $374,000,000

Now what wouldn't shareholders give for McDonalds to bring in another $374,000,000? Yet they don't do it? Could it be that they would see a decline in sales that would offset the price increase? Probably.

For if they could just raise their prices arbitrarily, they would.

And so your lesson concludes
 
But if all other fast food joints did the same....it would be no harm/no foul.

There is....granted...a certain percentage that may opt to cook at home because of that $.68. But....

A. It probably would be negligible.

And

B. They'd probably be eating healthier.

Win/win.
 
McDonalds doesn't need to raise prices to pay their employees more.

Last years revenue was over $27 Million and profit alone was over $5.5 Million. If McDonalds was going to "trickle down" with more money, they would have already.

The only thing the workers can do is make a stand and form a union
 
Steelplate said:
But if all other fast food joints did the same....it would be no harm/no foul.

There is....granted...a certain percentage that may opt to cook at home because of that $.68. But....

A. It probably would be negligible.

And

B. They'd probably be eating healthier.

Win/win.
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You are missing the point. If McDonalds could get another $0.68 per Big Mac they would do it now and get another $300,000,000 whether they raised wages or not. They could do it now for pure profit. That is my point. Why do you miss that?
you think these things are arbitrary. They R not
 
Anti-Party said:
McDonalds doesn't need to raise prices to pay their employees more.

Last years revenue was over $27 Million and profit alone was over $5.5 Million. If McDonalds was going to "trickle down" with more money, they would have already.

The only thing the workers can do is make a stand and form a union
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Actually it is billion. It would help if you learned how to read an annual report
 
I Love America said:
It's OK I know I am smarter than you.
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The fact that you won't debate me, won't read my information and constantly use 3rd grade attacks prove otherwise kid. You have never even came close to holding a debate with me kiddo. I only debate you in hopes to educate you so you don't go on a shooting spree.
 
Anti-Party said:
The fact that you won't debate me, won't read my information and constantly use 3rd grade attacks prove otherwise kid. You have never even came close to holding a debate with me kiddo. I only debate you in hopes to educate you so you don't go on a shooting spree.
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I can read an annual report. You can't.

;)

Who needs the educating?
 
I Love America said:
You are missing the point. If McDonalds could get another $0.68 per Big Mac they would do it now and get another $300,000,000 whether they raised wages or not. They could do it now for pure profit. That is my point. Why do you miss that?
you think these things are arbitrary. They R not
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No....you are missing the point. If McDonalds could swing the. $.68 and tout in public that they are paying their employees a real wage....that would be a boon to their business.

Like it or not.....everyday people always root for the guy in the white hat. Why NOT be the guy in the white hat when it's not going to hurt you?
 
I Love America said:
I can read an annual report. You can't.

;)

Who needs the educating?
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If you read the link ......you didn't.....they posted it in Millions. I speed read it. But we are here about political debate....... not grammar, miss-reading or miss-typing justice...

If you want to debate me about politics, do it. You can't because I own you 100% on all topics. Easily in fact.
 
NOVA said:
You make the mistake and the other guy is the idiot ?......Man, you are a real gem.


You've been pwned.....big time.
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Only if you are ignorant enough to miss the point I was originally making. You don't seem to care much about points or subjects at all. My argument was solid in my statement but it was amplified by millions once corrected. Pretty sure I win this debate kids.
 
Steelplate said:
No....you are missing the point. If McDonalds could swing the. $.68 and tout in public that they are paying their employees a real wage....that would be a boon to their business.

Like it or not.....everyday people always root for the guy in the white hat. Why NOT be the guy in the white hat when it's not going to hurt you?
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If that were true they would do it.
 
Does McDonalds charge the same price for a Big Mac in every market?

Is the price in markets with higher Stare or municipal minimum wages ALWAYS higher than it is in markets with the Federal minimum wage? How about the reverse?
 
LoneLaugher said:
Does McDonalds charge the same price for a Big Mac in every market?

Is the price in markets with higher Stare or municipal minimum wages ALWAYS higher than it is in markets with the Federal minimum wage? How about the reverse?
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Actually that is a great question and given their franchise model, I would say no. But since I don't the cost of every Big Mac in every market I can't tell you.

It is however irrelevant to my larger point which is that there isn't a lot of price elasticity of demand in a Big Mac.

If McDonalds could charge $.68 more per Big Mac and not see a decrease in demand they would do it. That would add $374,000,000 to their top line. They could offer to split 50% of it with the workers and it wouldn't matter.

McDonalds charges what it charges because that is what the market will bear.

Now some have said "but if McDonalds did this, it would be a boon feor business". There is zero proof of this. They also ignorantly claim "buf if every other fast food place did this, it would be a net wash". That would be collusion and run afoul of the gobblement.

I highly suggest a course in economics for my liberal friends
 
Anti-Party said:
McDonalds doesn't need to raise prices to pay their employees more.

Last years revenue was over $27 Million and profit alone was over $5.5 Million. If McDonalds was going to "trickle down" with more money, they would have already.

The only thing the workers can do is make a stand and form a union
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1.8 million employees

it seems you don't know how to structure an equation. 27 million in revenue with 1.8 million employees. That's not very impressive. It's a shame you suck so hard at math that you think it's an impressive amount.
 
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