"We're not addressing the cause."įast Food Workers In Seven Cities Strike, Saying They Can't Survive on $7. "Low wages for adults are a sign that something didn't go right in terms of education and work experience," he said.
#COST OF A BIG MAC IN U.S. MAC#
Bittlingmayer described discussions on fast food wages as a symptom of a larger problem: the U.S. Even at an artificially low price, a Big Mac is small consolation, The Economist said. But it will create some problems with McDonald's business model."ĭr. If you're an empiricist, you have to say you don't know what the outcome will be. Fifteen dollars an hour is a huge jump from $7.25. That makes the krone the most 'puffed-up currency' in The Economists iconic Big Mac index. "The actual effects of raising the minimum wage are up in the air," said Dr. There, a McDonalds ( MCD) Big Mac costs 48 Norwegian kroner, which translates to 7.76 in U.S. University of Kansas School of Business economics professor George Bittlingmayer called Morelix's model "a little bit of a leap of faith."
#COST OF A BIG MAC IN U.S. UPDATE#
McDonald's has not indicated that it'll be raising worker pay as a result of this week's strike Forbes has reached out to the chain for comment and will update this post with a response. This wage hike is, it should go without saying, entirely hypothetical. Frozen tilapia (fish) fillets are around 5 dollars for 2 lbs (32 oz) at Walmart. Some prices of other items: Chicken leg quarters typically range from 1.00 USD per lb to 1.50 USD per lb (16 oz). Why? In order to remain compeditive with rivals on price, the company, as economist Adam Ozimek pointed out earlier this week, would probably find a way to keep overall labor costs in check, most likely by reducing the number of workers and introducing more automation-think ATMs in the banking industry.) I havent been to McDonalds recently, but think the price of a Big Mac is around 4 dollars and a Big Mac combo is about 6 dollars. 100 oz.) in Copenhagen is 12 (kr80) The price of 1 liter (1 qt.) of whole fat milk in Copenhagen is 1. (Update, 2: Forbes contributor Tim Worstall argues that the answer to the question is simple: The cost of a Big Mac-at least to consumers-probably wouldn't go up at all. The price of Cold medicine for 6 days (Tylenol, Frenadol, Coldrex, or equivalent brands) in Copenhagen is 7 (kr45) The price of 2 liters of Coca-Cola in Copenhagen is 3.05 (kr20) The price of Laundry detergent (3 l. What a Big Mac would cost if McDonald's workers were paid $15 an hour remains an unanswered question, but it would almost certainly not be what Morelix says.) And that, as CJR.org's Ryan Chittum rightly points out, makes a big difference-as do a number of other factors excluded by Morelix. (Update: Unfortunately, Morelix did not, as Forbes' Morgan Brennan first pointed out after publication, factor the company's franchisee model into his calculations. The research assistant said his math is based on increases in salaries and benefits for every McDonald's worker, from minimum wage line cooks paid $7.25 an hour to CEO Donald Thompson, who made $8.75 million in 2012. Morelix said that his number crunching assumes profits and other expenses are kept at the same absolute number. All Rights Reserved.Morelix's take: If McDonald's workers were paid the $15 they're demanding, the cost of a Big Mac would go up 68 cents, from its current price of $3.99 to $4.67.īy his estimates, A Big Mac meal would cost $6.66 rather than $5.69, and the chain's famous Dollar Menu would go for $1.17. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2019 and/or its affiliates. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. Factset: FactSet Research Systems Inc.2019. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes.
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