Quote:
Originally Posted by Pairadocs
Absolutely, did not mean to imply in any way that I do not support capitalism and owner control of their private business. Like you have, and I have, each makes their own decision if/when, the product or service is not worth the price. Basic economics beats all the arguments this way or that, every time. If a person is willing to pay $1.50 for a cup of coffee (that also covers a certain "social" note of being in a community gathering place, and a small premium for "rental" of a chair or booth for a pass time one values, and that cup goes to $2.25, the same measure of social pleasure combined with the actual product, looses it's "value" to that individual, and..... when a certain percentage of people begin to feel that way, business and profits go "down".... I know in the villages many people I used to see in the mornings have moved or don't come at all. McDonald's I am told, has benefited from the price increase at so many places.... however, ALL of this was taking place before the "China virus", who knows where it all stands now. Homemade yeast doughnuts are WONDERFUL... God bless my mom who would go through all that for us at least twice a month..... "back then in the good 'ol days !"
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Except we all know this is false. It sounds great on paper but it doesn't work in reality.
Examples: The price of a Big Mac at McDonald's. It started at a national average of $1.60 in 1986. It's now at around $4.93, only 34 years later. In 1986, minimum wage was $3.35/hour. So a Big Mac would cost you just under half an hour's pay, in 1986, if you were earning minimum wage.
Today, with *federal* minimum wage at $7.25/hour, you'd be dishing out around 2/3 of your hour's pay for the same sandwich. With the Florida minimum wage of $8.56/hour, you're still paying more than half an hour's pay for that sandwich, that cost less than a half hour's pay in 1986.
Your buying power has weakened over the years. And that's just Big Macs. Now imagine a family of 4 wanting to treat themselves for Dad's birthday. A once a year occasion. Two Big Macs - one for each parent. A Happy Meal for the youngest kid, a Fishwich for the second kid, and a large fry for the parents and older kid to share. Plus a chocolate shake for dad since it's his birthday, and 2 sodas for the older kid and mom. Youngest kid gets a drink with the Happy Meal price.
In 1986 you could get a Big Mac, supersize fry, and a coke - all in a box for $2.59. Add another Big Mac for $1.60, Fishwich was a 95 cents, a chocolate shake for 79 cents, and since that coke is supersized, get 2 straws so the older kid can share it. The Happy Meal was $1.89.
$2.59 + 1.60 + .79 + 1.89 + .95 = $7.82 for a family of 4 to celebrate Dad's birthday at McDonald's in 1986.
Compare to today: A Big Mac meal (medium) is $6.71 with medium soda and medium fry. A second Big Mac, on its own, is $4.47. Fishwich is $4.24, and you'll still need another fry; a medium runs $2.00. A cheeseburger Happy Meal is $3.12. Don't forget the chocolate shake...a medium is $2.90. That's $23.44 for a family of 4 to celebrate Dad's birthday at McDonald's.
While that doesn't sound like a lot to you and me and most of the people living in the Villages, remember minimum wage - in 1986, at $3.35/hour, the $7.82 for the family of 4 would be 2 hours and 20 minutes pay, to cover the cost.
In 2020, in Florida at $8.56/hour, it'll take around 2 hours and 50 minutes to cover the cost. And you get less food (Big Macs are smaller, so are the fish sandwiches), and have to order an extra fry to get a similar deal.
Again - that's just McDonald's. You can look at pretty much anything, comparing it to when minimum wage was lower, and the current minimum wage, and you'll find that your dollar doesn't buy as much as it used to buy back then, overall. Wages have not kept up with costs. They just flat out haven't. The CEO salaries have gone up - the franchise owner revenue has gone up. The wealthy people who run things are MUCH wealthier than ever before, thanks in part to enormous tax write-offs and stock dividends in the companies they represent. But the workers don't get any of that. And it's the workers who are BUYING those Big Macs. Other than a certain person occupying the white house, there really aren't that many rich people who eat fast food on a regular basis. Most of them make use of their private chefs. Who are ALSO paid more than the guy flipping burgers at McDonald's.