General Discussion
In reply to the discussion: Fast-Food Strikes Expand Across U.S. to 50 Cities [View all]SunSeeker
(52,026 posts)See the charts in post #310 below. http://www.democraticunderground.com/?com=view_post&forum=1002&pid=3567732
The numbers in your hypothetical do not reflect any ongoing business I am aware of. Those are pretty low sales for such a high rent. If I was crazy enough to buy a sandwich shop, I would pick a popular mom and pop where the folks wanted to retire (established client base, no franchise fees). But I would not do a food business. Way too much work. That business you describe does not make sense; I don't know why anyone would do it even with $9/hour workers. And in most mom and pops with that low a yearly revenue, the owners (mom and pop) are the main workers, with a couple minimum wage part-timers. So increasing their wages from $9 to $15 would increase costs only by $12k per year ($6 x 20/hr/wk x 2 part-timers x 52 wks/year=$12,480). If the owners have to increase prices, they will be able to do so since other businesses with minimum wage workers will do so also. Something you keep ignoring. This hypothetical sandwich shop must make good sandwiches for a fair price. Capitalism does not guarantee every entrepreneur success. Workers should not be exploited so owners can make a buck.
Requiring a living wage for the bottom of the wage scale is not going to raise house prices through the roof. No one making $15/hour or a household making $60,000 (their take-home pay will be a lot less, after health insurance, payroll taxes, etc. are deducted) can afford much of a house in California, as you know. They'd have to go pretty far inland to the desert or similar spots. What it will allow them to do is rent a decent apartment and move out of their parents' house. You can't afford a $2,000 mortgage and the attendant expenses of home ownership on a $60k gross family income. And it isn't just 18-year-olds, but the seniors you're so concerned about who will benefit from the higher minimum wage. There's plenty of seniors working at the fast food joints and small businesses around my house. With people making more, they'll be able to afford paying a little more for their fast food, and their rent. Plus, seniors on low fixed incomes are eligible for HUD housing that requires them to pay only 30% of their income toward rent. HUD pays the difference between that and the market rent. I know. My mom had one of those apartments. Plus seniors have Medicare.
Young people have no such safety net. If they can't pay rent, they move in with their parents or in their car. And if you're over 26 and/or not on your parents' policy, you've got to come up with money for health insurance. And a car to get to work. And clothes for work...etc. They desperately need a living wage just to cover the basics. That is why it is immoral to pay anyone, including 18 year olds, only $7/hour.