Study: Low Fast Food Wages Cost Taxpayers $7 Billion Per Year
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Young_Chitlin
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By: Hamilton Nolan
The ongoing movement to raise the wages of fast food workers got a boost today from two new reports that attempt to quantify just how much those low wages cost society as a whole. It's a lot.
The first report, out of UC-Berkeley's Labor Center, attempts to calculate the total amount of public benefits that taxpayers provide to low-wage fast food workers, who are not paid enough to cover their basic needs. The findings:
More than half (52 percent) of the families of front-line fast-food workers are enrolled in one or more public programs, compared to 25 percent of the workforce as a whole.
The cost of public assistance to families of workers in the fast-food industry is nearly $7 billion per year.
Even those lucky enough to get full time hours are not immune: "The families of more than half of the fast-food workers employed 40 or more hours per week are enrolled in public assistance programs."
The second report, from the National Employment Law Project, breaks down the public costs by individual fast food company. It says that the ten largest fast food chains, which employ 2.25 million people, cost taxpayers $3.8 billion per year in public assistance. McDonald's alone accounts for $1.2 billion of that figure.
http://laborcenter.berkeley.edu/publiccosts/fastfoodpovertywages.shtml
http://www.nelp.org/page/-/rtmw/uploads/NELP-Super-Sizing-Public-Costs-Fast-Food-Report.pdf?nocdn=1
Comments
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Sneak Dissa wrote: »Do you realize that if someone works at McDonalds full-time in NYC they have to be on public assistance in order to afford food and pay rent. That means as taxpayers we're subsidizing these people's cheap labor force while they continue to make record profits and rake in 8 million a year in salary not including options. So yeah - of course it's more common that people will vilify the CEO instead of the labor.
@blakfyahking ... rebuttal? -
that is a lot of ? money
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They did a similar study and found similar things about Walmart.
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Sneak Dissa wrote: »Sneak Dissa wrote: »Do you realize that if someone works at McDonalds full-time in NYC they have to be on public assistance in order to afford food and pay rent. That means as taxpayers we're subsidizing these people's cheap labor force while they continue to make record profits and rake in 8 million a year in salary not including options. So yeah - of course it's more common that people will vilify the CEO instead of the labor.
@blakfyahking ... rebuttal?
what's there to rebut?
I mean of course nobody is going to talk about comparing the cost of inflation to the cost of subsidizing workers with no skills.....$7B seems cheap when you look at it that way
you forget that most minimum wage jobs are supposed to be temporary...........but unfortunately folks have started making careers out of these jobs
go ahead and thank Obama for all this "hope and change" these workers are experiencing now LOL -
Shaolin_Style wrote: »So...does anyone still want to talk ? about fast food workers not deserving a living wage?
ok Loca......you said your moms owns a business right?
what does she pay her workers?
does she care how skilled of an employee they are before she pays them a living wage?
cats still have a self-centered Americanized POV when it comes to this
you can't have the freedom to succeed without having the freedom to fail at the same time
I honestly can't feel too sorry for someone who makes a career out of working a minimum wage job
not when majority of the products Americans buy are made by folks making less and living under worse conditions somewhere else in the world
cats can't see past their own hypocrisy to see it isn't just that easy to pay an unskilled ? a "livable wage"
if you pay a livable wage today and then prices rise (inflation) to where that livable wage is basically equivalent to what minimum wage is today.........then what do you do next to fix the problem? SMH -
blakfyahking wrote: »Sneak Dissa wrote: »Sneak Dissa wrote: »Do you realize that if someone works at McDonalds full-time in NYC they have to be on public assistance in order to afford food and pay rent. That means as taxpayers we're subsidizing these people's cheap labor force while they continue to make record profits and rake in 8 million a year in salary not including options. So yeah - of course it's more common that people will vilify the CEO instead of the labor.
@blakfyahking ... rebuttal?
what's there to rebut?
I mean of course nobody is going to talk about comparing the cost of inflation to the cost of subsidizing workers with no skills.....$7B seems cheap when you look at it that way
you forget that most minimum wage jobs are supposed to be temporary...........but unfortunately folks have started making careers out of these jobs
So you're comfortable with paying the difference between what people make and what they need to live as opposed to their employer doing it?blakfyahking wrote: »go ahead and thank Obama for all this "hope and change" these workers are experiencing now LOL
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People talking about paying people a "livable wage" whatever that means are basically like '? small businesses'.
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It's like that saying: 'everybody wants to go to heaven but no one wants to die.' People want their cake and eat it too. They want their unskilled labor jobs and they want to be paid well but it doesn't work like that.
I say do away with the minimum wage so we can compete with China again. Something is better than nothing. This will boost the economy lower unemployment and ultimately crime. -
Sneak Dissa wrote: »
So you're comfortable with paying the difference between what people make and what they need to live as opposed to their employer doing it?
you understand the basics of how a business works correct?
how do you propose forcing employers to pay this difference without actually having the govt come in and basically take over the firm?
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High Revolutionary wrote: »People talking about paying people a "livable wage" whatever that means are basically like '? small businesses'.
Exactly.
People seem to forget that every person who works a fast-food/unskilled labor job doesn't work for a major multi-billion dollar corporation.
McDonald's can afford to pay people a living wage, but a local fast food place wouldn't be able to stay in business if they were forced to do it.
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Shaolin_Style wrote: »blakfyahking wrote: »Shaolin_Style wrote: »So...does anyone still want to talk ? about fast food workers not deserving a living wage?
ok Loca......you said your moms owns a business right?
what does she pay her workers?
does she care how skilled of an employee they are before she pays them a living wage?
cats still have a self-centered Americanized POV when it comes to this
you can't have the freedom to succeed without having the freedom to fail at the same time
I honestly can't feel too sorry for someone who makes a career out of working a minimum wage job
not when majority of the products Americans buy are made by folks making less and living under worse conditions somewhere else in the world
cats can't see past their own hypocrisy to see it isn't just that easy to pay an unskilled ? a "livable wage"
if you pay a livable wage today and then prices rise (inflation) to where that livable wage is basically equivalent to what minimum wage is today.........then what do you do next to fix the problem? SMH
I'll be honest: I only read your first question and didn't even feel like reading the rest.
My mother only works with me.
And she's an entrepreneur who believes in a living wage.
And we're not talking about small businesses; we are talking about fast food workers at corporations.
So what's your point?
of course you are a social lounge poster who doesn't read haha
if the bolded is true, why hasn't she hired someone yet and paid them a living wage?
and yeah you are talking about small businesses.........most if not all corporations in the fast food industry are just headquarters...........
majority of fast food workers work at distinctly separate franchises.....which could actually be classified as small businesses
but of course people love glancing over that lil detail haha
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I'll ? up some thin crust pizza with extra cheese right now.
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blakfyahking wrote: »Shaolin_Style wrote: »blakfyahking wrote: »Shaolin_Style wrote: »So...does anyone still want to talk ? about fast food workers not deserving a living wage?
ok Loca......you said your moms owns a business right?
what does she pay her workers?
does she care how skilled of an employee they are before she pays them a living wage?
cats still have a self-centered Americanized POV when it comes to this
you can't have the freedom to succeed without having the freedom to fail at the same time
I honestly can't feel too sorry for someone who makes a career out of working a minimum wage job
not when majority of the products Americans buy are made by folks making less and living under worse conditions somewhere else in the world
cats can't see past their own hypocrisy to see it isn't just that easy to pay an unskilled ? a "livable wage"
if you pay a livable wage today and then prices rise (inflation) to where that livable wage is basically equivalent to what minimum wage is today.........then what do you do next to fix the problem? SMH
I'll be honest: I only read your first question and didn't even feel like reading the rest.
My mother only works with me.
And she's an entrepreneur who believes in a living wage.
And we're not talking about small businesses; we are talking about fast food workers at corporations.
So what's your point?
of course you are a social lounge poster who doesn't read haha
if the bolded is true, why hasn't she hired someone yet and paid them a living wage?
and yeah you are talking about small businesses.........most if not all corporations in the fast food industry are just headquarters...........
majority of fast food workers work at distinctly separate franchises.....which could actually be classified as small businesses
but of course people love glancing over that lil detail haha
fast food corporations make their money by selling the ingredients and other ? to the franchisee..they don't actually own all the franchises..only big box store corporations (walmart, target, best buy etc) actually own the store -
Shaolin_Style wrote: »Thank you, Captain save a corporation.
They can always count on you.
yet we can only count on you to criticize but not offer any real solutions but feelings
how ironic when your mom more than likely owns a corporation as well LOL
I appreciate the fact that you acknowledge me working towards her benefit
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Shaolin_Style wrote: »blakfyahking wrote: »Shaolin_Style wrote: »Thank you, Captain save a corporation.
They can always count on you.
yet we can only count on you to criticize but not offer any real solutions but feelings
how ironic when your mom more than likely owns a corporation as well LOL
I appreciate the fact that you acknowledge me working towards her benefit
But she is pro-living wage, as I've said before.
And my moms has nothing to do with fast food workers and low wages, doe.
)
You love putting on your cape for mafuckas with money instead of the worker bees.
Hope you enjoy funneling out them dollas to pay for Micky Dees ? them over wage wise.
oh so she is a hypocrit like you? what type of business she running where she can't hire a worker and provide a living wage if her actions match her beliefs? haha
I notice once again you only complained but haven't offered a solution as usual
and for the record shorty why would I cape for worker bees when I myself am a "mafucka with money"
wise up shorty you still got a lot to learn in this world -
Shaolin_Style wrote: »blakfyahking wrote: »Shaolin_Style wrote: »blakfyahking wrote: »Shaolin_Style wrote: »Thank you, Captain save a corporation.
They can always count on you.
yet we can only count on you to criticize but not offer any real solutions but feelings
how ironic when your mom more than likely owns a corporation as well LOL
I appreciate the fact that you acknowledge me working towards her benefit
But she is pro-living wage, as I've said before.
And my moms has nothing to do with fast food workers and low wages, doe.)
You love putting on your cape for mafuckas with money instead of the worker bees.
Hope you enjoy funneling out them dollas to pay for Micky Dees ? them over wage wise.
oh so she is a hypocrit like you? what type of business she running where she can't hire a worker and provide a living wage if her actions match her beliefs? haha
I notice once again you only complained but haven't offered a solution as usual
and for the record shorty why would I cape for worker bees when I myself am a "mafucka with money"
wise up shorty you still got a lot to learn in this world
Read the first line and didn't bother reading the rest.
The above stats don't lie.
and the above stats mean what exactly?
what is the point of using stats as a talking point unless you are suggesting some sort of solution?
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Shaolin_Style wrote: »High Revolutionary wrote: »It's like that saying: 'everybody wants to go to heaven but no one wants to die.' People want their cake and eat it too. They want their unskilled labor jobs and they want to be paid well but it doesn't work like that.
I say do away with the minimum wage so we can compete with China again. Something is better than nothing. This will boost the economy lower unemployment and ultimately crime.
So you're saying you want people to work slave labor jobs and be driven deeper into poverty?
You do realize that crime is also related to low wages, right?
Yeah, that plan makes perfect sense, bruh.
is that what I said?
or is that one of your attempts at trying to make me feel sorry for someone else's personal choices?
your plan is what again?
you never explained what happens if inflation causes livable wages to have as much purchasing power as current MW today.........
what do you propose we do to fix the problem after you throw money at it and it doesn't change anything (or perhaps makes things worse for the same folks)?
just admit that maybe ? isn't as simplistic as you are trying to make it -
Shaolin_Style wrote: »Point is, if you're not paying higher wages, you'll still have to come out of pocket through assistance and a safety net.
I'd rather those who own these franchises pay the ? up. They have the ability to do so.
explain how you would make that happen without govt control of these franchises -
government the people should control them...
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Shaolin_Style wrote: »
fast food workers and low wages, doe.blakfyahking wrote: »Shaolin_Style wrote: »Thank you, Captain save a corporation.
They can always count on you.
yet we can only count on you to criticize but not offer any real solutions but feelings
how ironic when your mom more than likely owns a corporation as well LOL
I appreciate the fact that you acknowledge me working towards her benefit)
Every fast-food worker doesn't work for McDonald's or any other major chain.
What about the fast-food workers who don't work for big restaurant chains?
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blakfyahking wrote: »Sneak Dissa wrote: »Sneak Dissa wrote: »Do you realize that if someone works at McDonalds full-time in NYC they have to be on public assistance in order to afford food and pay rent. That means as taxpayers we're subsidizing these people's cheap labor force while they continue to make record profits and rake in 8 million a year in salary not including options. So yeah - of course it's more common that people will vilify the CEO instead of the labor.
@blakfyahking ... rebuttal?
what's there to rebut?
I mean of course nobody is going to talk about comparing the cost of inflation to the cost of subsidizing workers with no skills.....$7B seems cheap when you look at it that way
you forget that most minimum wage jobs are supposed to be temporary...........but unfortunately folks have started making careers out of these jobs
go ahead and thank Obama for all this "hope and change" these workers are experiencing now LOL
That thinking seems flawed. Call me a skeptic but there are not enough 'good jobs' for everyone.
IMO though minimum wage is for students and immigrants - people who have not completed their formal training in the country they reside in. -
blakfyahking wrote: »Sneak Dissa wrote: »Sneak Dissa wrote: »Do you realize that if someone works at McDonalds full-time in NYC they have to be on public assistance in order to afford food and pay rent. That means as taxpayers we're subsidizing these people's cheap labor force while they continue to make record profits and rake in 8 million a year in salary not including options. So yeah - of course it's more common that people will vilify the CEO instead of the labor.
@blakfyahking ... rebuttal?
what's there to rebut?
I mean of course nobody is going to talk about comparing the cost of inflation to the cost of subsidizing workers with no skills.....$7B seems cheap when you look at it that way
you forget that most minimum wage jobs are supposed to be temporary...........but unfortunately folks have started making careers out of these jobs
go ahead and thank Obama for all this "hope and change" these workers are experiencing now LOL
That thinking seems flawed. Call me a skeptic but there are not enough 'good jobs' for everyone.
IMO though minimum wage is for students and immigrants - people who have not completed their formal training in the country they reside in.
then how do you propose we fix it?
in capitalism there is a place for everyone to maximize their abilities to earn a paycheck
these low wage jobs are and have always been designed to be temporary
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Shaolin_Style wrote: »Point is, if you're not paying higher wages, you'll still have to come out of pocket through assistance and a safety net.
I'd rather those who own these franchises pay the ? up. They have the ability to do so.
That's the point. The rest of this ? is irrelevant.
I will take it to the next level: ? a small business. Close up shop if you can't afford to pay workers a standard living wage.
Owning and operating a business is a privilege not a right and you don't have a right for the government to guarantee you a profit either.
I honestly gives no ? about that. But there is no reason someone working, especially full time needs government assistance to make ends meet. It defeats the propose of working, might as well not work. -
I'm not sure... a lot of good manufacturing jobs are gone, and jobs keep disappearing. Increased mechanization of industry is also reducing the number of good jobs.
Entrepreneurial exploits may prove to be a good alternative but manufacturing and designing competitive goods is very costly; this is one of the defenses that big businesses use to avoid paying employees more. I just watched capitalism a love story and GM's president says essentially that exact thing to Michael Moore. That in mind, how can a small business possibly be expected to compete? Big bank beats little bank.
Service based businesses seem then to be a way better alternative but how many can we really have before we come into excess? -
I'm not sure... a lot of good manufacturing jobs are gone, and jobs keep disappearing. Increased mechanization of industry is also reducing the number of good jobs.
Entrepreneurial exploits may prove to be a good alternative but manufacturing and designing competitive goods is very costly; this is one of the defenses that big businesses use to avoid paying employees more. I just watched capitalism a love story and GM's president says essentially that exact thing to Michael Moore. That in mind, how can a small business possibly be expected to compete? Big bank beats little bank.
Service based businesses seem then to be a way better alternative but how many can we really have before we come into excess?
Of course being an entrepreneur is expensive, that's the inherent risk in becoming an entrepreneur.
The definition of "small business" is murky as hell. You can have hundreds of workers and a company worth millions and still claim to be a "small business". That whole thing is more or less a front by big businesses to protect themselves. It's easier to use "small business" as a shield than to admit you can pay that ? . It's how they have avoided paying taxes and depressing wages for decades.
Nonprofits have pretty much got service industries sowed up. If you are worried about excess it will be in that arena first I'd gather.
