The union-led push for a $15 wage at fast-food restaurants would reduce sales and profits at fast food restaurants, cost jobs, and drive up the cost of fast food meals, Heritage Foundation economist James Sherk reports.
“Some workers would come out ahead from a $15 fast-food wage: those with the most experience and the highest efficiency. Sadly, marginal workers–including those with the worst alternatives and the fewest marketable skills–would be left behind,” Heritage’s Salim furth points out.
“Without major operational changes, fast-food restaurants would have to raise prices by 38 percent while seeing their profits fall by 77 percent,” Sherk explains. “This would cause many restaurants to close and many others to make extensive use of labor-saving technology—eliminating many of the entry-level jobs that inexperienced workers need to get ahead. “
Do you think fast-food restaurants should be made to pay their workers more?