Quote:
Originally Posted by CliffFletcher
You’re moving the goalposts. We were talking about prices and salary.
If we want more context, let’s include tax as well. That burger in Denmark will have a 25 per cent VAT added on top, compared to Canada’s 5 per cent. I’d wager your Danish McDonald’s worker pays higher income and payroll tax than their Canadian counterpart as well.
And it’s safe to assume the high input cost at Danish McDonald’s is why they have only one McDonald’s per 62k people, compared with one per 27k people in Canada. Presumably, they only operate in very high-demand, high-volume locations.
In our market economy, higher wages for those in service industry jobs will mean some combination of higher prices, increased automation, and reductions in locations (and jobs). When input costs go up, companies don’t just continue to operate as normal but with reduced profit. That’s not the way markets work.
I’m okay with prices at fast food places, grocery stores, travel and hospitality, etc. going up as wages in those industries have increased in recent years. As a middle-class person, why shouldn’t I contribute my share to better wages for the working class? You don’t get to be a more egalitarian society without making collective sacrifices.
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I'm not moving the goalposts. You said if they pay workers more they have to raise prices. I've shown you that there are places where they pay more, and the prices are the same or lower. People may pay more taxes but so do the companies. How many McDonald's there are per person is irrelevant.
McDonald's net income for 2023 is 8.469 billion. If they have to pay people a few dollars more and only walk away with 7 billion I think they'll be ok.
There's zero reason prices need to increase it's nonsense.