Strong minimum wage policy does not drive inflation. As noted in states that did NOT increase their minimum wages, there is plenty of inflation even when you DON’T increase minimum wage. And in any case, why are the same people who whine about paying decent wages to workers so silent when it comes to exorbitant CEO and top management compensation that often runs into the tens of millions?
The average cost of a Big Mac in 2009 (the last time we increased the federal minimum wage) was $2.50
The average cost of a Big Mac in 2024 (with NO INCREASE in the minimum wage) was more than five dollars at most locations.
.
In contrast, strong wage policy actually helps keep inflation in check.
Consider the price history of McDonald’s, one of the businesses most heavily impacted by minimum wage:
In 1954 the cost of a basic McDonald’s hamburger (no longer sold) was 15¢.
By 1971 the cost of a basic McDonald’s hamburger had risen to 19¢ in some markets, though it remained 15¢ in other areas, an increase of up to 26% over 17 years (average increase 1.6% per year in consumer cost).
The 1954 minimum wage was 75¢ per hour
The 1971 minimum wage was $1.65 per hour, an increase of 120% (average increase 7% per year in wage gains).
The increase in the consumer price of the burgers was nowhere close to the increases in minimum wage gains.
And this period from 1954 to 1971 was the strongest period of widespread, broad-based middle-class prosperity in all of U.S. history and a time when the rate of inflation was at all-time lows.
.
Minimum wage increases from 1954 to 1971:
1954 = 75¢/ hr
1955 =$1.00/hr
1964 = $1.15/hr
1965 = $1.25/hr
1970 = $1.45/hr
1971 = $1.65/hr
During this time, there was no corresponding increase in the price of a basic hamburger or cheeseburger.
The sad thing is that $20 an hour is not a living wage in CA nor is the $12 per hour here in FL (which will go up to $13 in the fall) although those figure are better than what you find in GA and AL (and some other red states) of $7.25 an hour. The increase of costs is not necessarily tied to increase of wages as I have traveled to GA and AL recently and the prices at many of their restaurants and supermarkets are quite similar to FL. However, one thing I know the fast food, retail and service conglomerates do engage in here in FL is using the rise in minimum wage to justify not giving employees full time hours so that they do not qualify for benefits such as health care, paid leave, sick days, 401K participation, etc. In addition, many of the establishments have taken a page from the Bezos’ book of running his sweatshops errr distribution centers. Here employees are hired as temporary workers who have this status for 90 days in which they are “evaluated” but do not receive benefits. Many of the temp workers do not make it 90 days as they are written up for being a minute late on the time clock or do not successfully meet unrealistic productivity quotas. From what I can see the workers are basically replaced via new applicants from labor pools and job fairs.
During the pandemic and shortly thereafter, the federal government offered stimulus as well as federal unemployment benefits. This addition $600 a week. In Florida the maximum unemployment benefit is $275 a week or 60% of your salary, whichever is lower. Some people who were laid off in the service sector actually were getting a living wage. However, the conglomerates who rely on staff making under $10 per hour were going nuts over this, whining that no one would return to their jobs so Ron DeSatan simply cut-off the federal stimulus even though many people truly needed this money to avoid eviction, car repossession, pay for medication and prescriptions or simply buy food for their families.
It’s probably more likely for robots to replace humans when the minimum wage is set so low that nobody will even apply for the jobs. A good example is all the self-checkout lanes seen in retail establishments everywhere. They just don’t look like Robby the Robot, yet.
How much do you really pay for that hamburger? By the time you pay your taxes to cover the housing, food, and healthcare subsidies your server receives due to the low wages their employer pays, how much did that burger really cost you?
“Unfortunately, the real minimum wage is always zero, regardless of the laws, and that is the wage that many workers receive in the wake of the creation or escalation of a government-mandated minimum wage, because they lose their jobs or fail to find jobs when they enter the labor force. Making it illegal to pay less than a given amount does not make a worker’s productivity worth that amount—and, if it is not, that worker is unlikely to be employed.”
― Thomas Sowell, Basic Economics: A Citizen’s Guide to the Economy
“The research suggests that small businesses don’t appear to cut jobs in response to an increase in the minimum wage, and may actually benefit from it instead.”
“A minimum wage increase doesn’t kill jobs, it kills job vacancies. The higher wage makes it easier to recruit workers and retain them. Turnover rates go down. Other research shows that those workers are likely to be a little more productive, as well.”
I see that the right-wing commentators believe the solution to a low salary is to simply find a better-paying job. These are the economic professors who’ll vote for the candidate who doesn’t know American consumers pay tariffs.
Guess you have not seen the assembly lines at auto plants or other major assembly lines, full of Robots. Or online shopping, no humans taking orders. Gee, now you order your Big Mac online.
DD Wiz Premium Member about 1 month ago
Excellent ’toon on so many levels.
Strong minimum wage policy does not drive inflation. As noted in states that did NOT increase their minimum wages, there is plenty of inflation even when you DON’T increase minimum wage. And in any case, why are the same people who whine about paying decent wages to workers so silent when it comes to exorbitant CEO and top management compensation that often runs into the tens of millions?
The average cost of a Big Mac in 2009 (the last time we increased the federal minimum wage) was $2.50
The average cost of a Big Mac in 2024 (with NO INCREASE in the minimum wage) was more than five dollars at most locations.
.
In contrast, strong wage policy actually helps keep inflation in check.
Consider the price history of McDonald’s, one of the businesses most heavily impacted by minimum wage:
In 1954 the cost of a basic McDonald’s hamburger (no longer sold) was 15¢.
By 1971 the cost of a basic McDonald’s hamburger had risen to 19¢ in some markets, though it remained 15¢ in other areas, an increase of up to 26% over 17 years (average increase 1.6% per year in consumer cost).
The 1954 minimum wage was 75¢ per hour
The 1971 minimum wage was $1.65 per hour, an increase of 120% (average increase 7% per year in wage gains).
The increase in the consumer price of the burgers was nowhere close to the increases in minimum wage gains.
And this period from 1954 to 1971 was the strongest period of widespread, broad-based middle-class prosperity in all of U.S. history and a time when the rate of inflation was at all-time lows.
.
Minimum wage increases from 1954 to 1971:
1954 = 75¢/ hr
1955 =$1.00/hr
1964 = $1.15/hr
1965 = $1.25/hr
1970 = $1.45/hr
1971 = $1.65/hr
During this time, there was no corresponding increase in the price of a basic hamburger or cheeseburger.
Hello Everyone about 1 month ago
I love the Nice / Kill Switch on the robot. The made in China on them is also a nice touch. Yes, Great Toon Clay!
ibFrank about 1 month ago
Tie politicians wages to minimum wage reduce it to what it was when the minimum wage was last increased.
knutdl about 1 month ago
McDonald’s sucks. Visit Burger King Pizza rat.
Baslim the Beggar Premium Member about 1 month ago
I like the joke about ice cream machine…
ikini Premium Member about 1 month ago
McSippy on the cup held by the mystery figure (/S) in the drive-through.
GOGOPOWERANGERS about 1 month ago
Firstly it should be renamed to living wage which what it should be the wage to earn to live as a human
TampaFanatic1 about 1 month ago
The sad thing is that $20 an hour is not a living wage in CA nor is the $12 per hour here in FL (which will go up to $13 in the fall) although those figure are better than what you find in GA and AL (and some other red states) of $7.25 an hour. The increase of costs is not necessarily tied to increase of wages as I have traveled to GA and AL recently and the prices at many of their restaurants and supermarkets are quite similar to FL. However, one thing I know the fast food, retail and service conglomerates do engage in here in FL is using the rise in minimum wage to justify not giving employees full time hours so that they do not qualify for benefits such as health care, paid leave, sick days, 401K participation, etc. In addition, many of the establishments have taken a page from the Bezos’ book of running his sweatshops errr distribution centers. Here employees are hired as temporary workers who have this status for 90 days in which they are “evaluated” but do not receive benefits. Many of the temp workers do not make it 90 days as they are written up for being a minute late on the time clock or do not successfully meet unrealistic productivity quotas. From what I can see the workers are basically replaced via new applicants from labor pools and job fairs.
During the pandemic and shortly thereafter, the federal government offered stimulus as well as federal unemployment benefits. This addition $600 a week. In Florida the maximum unemployment benefit is $275 a week or 60% of your salary, whichever is lower. Some people who were laid off in the service sector actually were getting a living wage. However, the conglomerates who rely on staff making under $10 per hour were going nuts over this, whining that no one would return to their jobs so Ron DeSatan simply cut-off the federal stimulus even though many people truly needed this money to avoid eviction, car repossession, pay for medication and prescriptions or simply buy food for their families.
braindead Premium Member about 1 month ago
MAGAts actually believe that an increase in minimum wage in CA will cause the price of hamburgers to increase in Virginia.
mourdac Premium Member about 1 month ago
Retail workers in all industries are an endangered species.
phritzg Premium Member about 1 month ago
It’s probably more likely for robots to replace humans when the minimum wage is set so low that nobody will even apply for the jobs. A good example is all the self-checkout lanes seen in retail establishments everywhere. They just don’t look like Robby the Robot, yet.
robcarroll1213 about 1 month ago
Cheeseburgers in Virginia now come with nuts…………….and bolts.
Hello Everyone about 1 month ago
The thieves at the self-check counters may actually increase some workers jobs!
Direwolf about 1 month ago
Is there even a question if McD and every other cheap meat seller has be trying to replace living people with automation and now AI?
[Unnamed Reader - 14b4ce] about 1 month ago
BAD DeCISION DEPARTMENT—-Ray Kroc’s original partner in Mc Donald’s sold out early in the game and missed outaon the real money
truthsocialol about 1 month ago
According to McDonald’s latest financial reports, the company’s current revenue is $25.49 Billion dollars.
In 2022 the company made a revenue of $23.18 Billion dollars, and in 2021 it made $23.22 Billion dollars.
three hundred dollars per share for its stock.
truthsocialol about 1 month ago
Clay! Excellent! I can’t be the only one who looks at trump’s mouth and sees a puckered sphincter, right?
Anybody??
The Lone Panda & Tonto about 1 month ago
Jeez, i came for a laugh and got an economics lesson. }:-)
The Lone Panda & Tonto about 1 month ago
I could be a CEO…dive-bomb a company into the ground and get a bonus for doing it.
piper_gilbert about 1 month ago
How much do you really pay for that hamburger? By the time you pay your taxes to cover the housing, food, and healthcare subsidies your server receives due to the low wages their employer pays, how much did that burger really cost you?
ShadowMaster about 1 month ago
Um, Our Governor in VA vetoed the minimum wage bill, so it’s at $12.00 not the $15.00 requested.
Geezer about 1 month ago
“Unfortunately, the real minimum wage is always zero, regardless of the laws, and that is the wage that many workers receive in the wake of the creation or escalation of a government-mandated minimum wage, because they lose their jobs or fail to find jobs when they enter the labor force. Making it illegal to pay less than a given amount does not make a worker’s productivity worth that amount—and, if it is not, that worker is unlikely to be employed.”
― Thomas Sowell, Basic Economics: A Citizen’s Guide to the Economy
Gnork about 1 month ago
“The research suggests that small businesses don’t appear to cut jobs in response to an increase in the minimum wage, and may actually benefit from it instead.”
“A minimum wage increase doesn’t kill jobs, it kills job vacancies. The higher wage makes it easier to recruit workers and retain them. Turnover rates go down. Other research shows that those workers are likely to be a little more productive, as well.”
—-Forbes
Ally2005 about 1 month ago
Not to worry T, you’ll still get your frequent eater discount from the McD hamberder bots.
Mike Baldwin creator about 1 month ago
Whack a mole economics.
clayjonz creator about 1 month ago
I see that the right-wing commentators believe the solution to a low salary is to simply find a better-paying job. These are the economic professors who’ll vote for the candidate who doesn’t know American consumers pay tariffs.
charliekane about 1 month ago
PR hopin’ a fry falls offa th’ tray.
Moore 1 about 1 month ago
Guess you have not seen the assembly lines at auto plants or other major assembly lines, full of Robots. Or online shopping, no humans taking orders. Gee, now you order your Big Mac online.
willie_mctell about 1 month ago
When I worked in a McDonald’s in 1964 I liked to say that we only had this job because they hadn’t figured out how automate it yet.
david_42 about 1 month ago
Nice touch with the ice cream machine out.
ShadyLithand Premium Member about 1 month ago
you know back in the 60’s and into the 70’s full time workers in eating establishment could afford a basic apartment.
Rich Douglas about 1 month ago
Machines have been replacing low-skill labor since the Industrial Revolution. Skill-up, brothers and sisters!
Do yourself a favor
Educate your mind
Get yourself together
Hey, there ain’t much time
— Steve Wonder