This should give you a pretty good idea of what corporations think of the American worker.
If McDonald’s doubled wages for all employees, including CEO Don Thompson, Big Macs would cost 68 cents more, increasing from $3.99 to $4.67, reports Caroline Fairchild at The Huffington Post.
Dollar Menu items would cost 17 cents more, according to HuffPo.
Fairchild cites a University of Kansas researcher, who crunched numbers to see what would happen if McDonald’s doubled the salary of every employee then passed that cost on entirely to consumers.
According to the report McDonald’s only spends 17% of its revenue on salary and benefits. So what about we take a novel approach, the humane approach and just double the employee wages and not pass the cost onto the consumer. McDonald’s revenue last year was $27 billion of that it payed it spent $4.7 billion on salaries and benefits. Doubling salaries wouldn’t mean doubling that 17% number because the benefits would still remain the same.
It’s not like it’s a completely unprecedented move in American history. Almost exactly 100 years ago Henry Ford doubled the wages of everyone working at his production plants. Ford’s thoughts on paying employees well were revolutionary to say the least.
If we can distribute high wages, then that money is going to be spent and it will serve to make storekeepers and distributors and manufacturers and workers in other lines more prosperous and their prosperity will be reflected in our sales. Country-wide high wages spell country-wide prosperity, provided, however, the higher wages are paid for higher production.
The kind of workman who gives the business the best that is in him is the best kind of workman a business can have. …[I]f a man feels that his day’s work is not only supplying his basic need, but is also giving him a margin of comfort and enabling him to give his boys and girls their opportunity and his wife some pleasure in life, then his job looks good to him and he is free to give it of his best. This is a good thing for him and a good thing for the business.
Of course, these days it’s beaten into our heads that rather than pump money into the working class where it’s actually needed that we are far better off subsidizing big business and giving them billions of dollars a year in handouts because they’re the “job creators”. Which, as we’ve seen over the past 40 years is utter nonsense.
What do you think? Should McDonald’s double the salaries of every fast food worker in America?