Why We Should Mcdonalds Raise Minimum Wage

While the federal minimum wage is currently $7.25 per hour, on Tax Day, many McDonald’s employees protested against their low wages; they argue that the minimum wage should be $15 per hour. Earlier this month, McDonald has officially announced that it will raise the wage by only $1 per hour for company-owned franchise. Also, independently operated franchises are even excluded from this pay raise because their wages are determined by the franchisee. That is, only about 10 percent of McDonald’s workers get “real” benefits from this raise. Consequently, many workers argue that the raises were not enough to make them get out of poverty. However, the executives of McDonalds have been resisted to raise the wage because they believe that the company cannot afford it so that they may

If the company boosts the wages, the employers may be satisfied and feel more hopeful for their future. They may be able to move into the better place to live and afford better education for their children while they go out for work. However, the company may not be able to make the profits as usual so that it will cause many workers to be fired and unemployment rate to increase. High unemployment rate would significantly hurt the economy that would eventually cause the decline in GDP. Thus, the stakeholders can be the entire economy, not only 900,000 McDonalds’ workers. If the company raises the wages as much as the workers would be satisfied, then the company may have to layoff many workers. Due to the consequent smaller labor force, the economy then would not produce products as much as they have been done usually. As a result, the economy would tend to import the goods from other foreign countries. As imported goods increases, firms would become less and less likely to demand the workers to hire. This is the endless chain that can never meet the satiated