McDonald's and Chipotle said they will raise menu prices in California to pay for the minimum wage hikes that Gov. Gavin Newsom recently signed into law.
Except they can easily afford to pay their employees a living wage while charging LESS than they already do. That would mean less profiteering though, can’t have that.
You’re right, but the prices of things are determined by supply and demand, not the goodness of some CEO’s heart.
If McDonald’s determines that raising their prices has sapped demand (at that price) they will be forced to lower the price by cutting into their profits somewhat or otherwise lowering their costs.
In capitalism, businesses will always set prices as high as consumers allow them to get away with.
the prices of things are determined by supply and demand
Nowhere near reality. Corporations and banks have been artificially depressing wages and inflating costs for decades. The prices of things and labor are determined by regulatory capture aka the rich and powerful bribing the people writing the rules.
If McDonald’s determines that raising their prices has sapped demand (at that price) they will be forced to lower the price by cutting into their profits somewhat or otherwise lowering their costs.
Aww it’s so adorable if you actually believe that 🥹
In capitalism, businesses will always set prices as high as consumers corrupt politucians allow them to get away with.
Hmm… On one hand I could go with fundamental logic and economics… But on the other hand some condescending guy on the fediverse said I’m wrong.
Say whatever makes you feel better about yourself but it’s not exactly rocket science: if McDonalds charged $15 for a Big Mac, a significant number of people would get their burgers at a competing restaurant. If they charged $20 for a burger, nobody would ever go there.
Prices are not set arbitrarily by the deep state cabal or whatever nonsense you want to believe in.
That’s just it: you have to look at just the basics and pretend the rest of the world doesn’t exist in order to conclude “supply and demand. End of story.”
some condescending guy
Yeah, when you’ve heard grown people pretending to know anything confidently state the same childishly simplistic take that just so happens to comport with their own biases but not the whole of reality a few hundred if not thousand times, you get a bit jaded.
I’d apologise for my condescension being rude, but frankly your confident assertion that the basics are the end result is even more rude in its assumption that I must be enough of a moron to be convinced by the most trite bullshit.
it’s not exactly rocket science
True, but it’s a hell of a lot less basic than you pretend.
If McDonalds charged $15 for a Big Mac, a significant number of people would get their burgers at a competing restaurant. If they charged $20 for a burger, nobody would ever go there.
Except for the fact that some people greatly prefer the Big Mac to anything the competitors have to offer, others don’t have any competitor close enough to make switching worthwhile for them, others still have an irrational brand loyalty to McDonald’s sometimes to the point of it being an integrated part of their personality.
There’s thousands of factors like these that give them power over the customer rather than the completely straightforward 1:1 interaction you’re assuming.
Prices are not set arbitrarily by the deep state cabal or whatever nonsense you want to believe in.
To claim any such thing would indeed be nonsense, which is why I didn’t.
you still need to sell the burger to make your income (franchising aside for now). no matter how monopolistic you are, there is always a demand constraint
no matter how monopolistic you are, there is always a demand constraint
Not necessarily. People can’t choose to not eat and some people simply don’t have any other options due to factors such as living in a food desert, not being able to afford better ready-made food, lacking either the ability, time or energy (often two or all three) to cook themselves and other limiting factors.
Like with employment, the “free market” of food isn’t anywhere near as free or equal as “it’s just supply and demand” types pretend to imagine.
This is business, there are a myriad of things businesses do to get and stay profitable, though the corporations profits should not come at the expense of their labor forces ability to earn a living wage.
Hiking prices in response to increasing wages to a reasonable level is coming at the expense of their labor forces ability to earn a living wage.
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Except they can easily afford to pay their employees a living wage while charging LESS than they already do. That would mean less profiteering though, can’t have that.
You’re right, but the prices of things are determined by supply and demand, not the goodness of some CEO’s heart.
If McDonald’s determines that raising their prices has sapped demand (at that price) they will be forced to lower the price by cutting into their profits somewhat or otherwise lowering their costs.
In capitalism, businesses will always set prices as high as consumers allow them to get away with.
Nowhere near reality. Corporations and banks have been artificially depressing wages and inflating costs for decades. The prices of things and labor are determined by regulatory capture aka the rich and powerful bribing the people writing the rules.
Aww it’s so adorable if you actually believe that 🥹
Fixed that for you.
Hmm… On one hand I could go with fundamental logic and economics… But on the other hand some condescending guy on the fediverse said I’m wrong.
Say whatever makes you feel better about yourself but it’s not exactly rocket science: if McDonalds charged $15 for a Big Mac, a significant number of people would get their burgers at a competing restaurant. If they charged $20 for a burger, nobody would ever go there.
Prices are not set arbitrarily by the deep state cabal or whatever nonsense you want to believe in.
That’s just it: you have to look at just the basics and pretend the rest of the world doesn’t exist in order to conclude “supply and demand. End of story.”
Yeah, when you’ve heard grown people pretending to know anything confidently state the same childishly simplistic take that just so happens to comport with their own biases but not the whole of reality a few hundred if not thousand times, you get a bit jaded.
I’d apologise for my condescension being rude, but frankly your confident assertion that the basics are the end result is even more rude in its assumption that I must be enough of a moron to be convinced by the most trite bullshit.
True, but it’s a hell of a lot less basic than you pretend.
Except for the fact that some people greatly prefer the Big Mac to anything the competitors have to offer, others don’t have any competitor close enough to make switching worthwhile for them, others still have an irrational brand loyalty to McDonald’s sometimes to the point of it being an integrated part of their personality.
There’s thousands of factors like these that give them power over the customer rather than the completely straightforward 1:1 interaction you’re assuming.
To claim any such thing would indeed be nonsense, which is why I didn’t.
you still need to sell the burger to make your income (franchising aside for now). no matter how monopolistic you are, there is always a demand constraint
Not necessarily. People can’t choose to not eat and some people simply don’t have any other options due to factors such as living in a food desert, not being able to afford better ready-made food, lacking either the ability, time or energy (often two or all three) to cook themselves and other limiting factors.
Like with employment, the “free market” of food isn’t anywhere near as free or equal as “it’s just supply and demand” types pretend to imagine.
Such “artificial” inflation would require collusion on a global scale, is that what you’re implying?
No it wouldn’t. All it would require is regulatory capture , which is pretty much as abundant in capitalism as hydrogen is in the natural world.
Hiking prices in response to increasing wages to a reasonable level is coming at the expense of their labor forces ability to earn a living wage.
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