Last week’s recommendation to raise the state’s minimum wage for fast food workers to $15 an hour may do more harm than good.
For openers, the recommendation by Gov. Andrew Cuomo’s Fast Food Wage Board doesn’t take full effect until 2018 in New York City and 2021 in the rest of the state. By that point, $15 an hour may only be good enough to be considered a low-income wage, given the rate of inflation.
More importantly, who’s to say the fast food industry won’t choose to eliminate jobs and close stores as a result of this wage hike? Mega corporations such as McDonald’s and Yum (which owns Kentucky Fried Chicken, Taco Bell and Pizza Hut) might replace people with machines to do the work. They certainly don’t need to have cashiers, given the advances in computer technology that would allow people to punch in their order and pay with their debit or credit cards.
Of course, supporters of the $15 an hour minimum wage say this increase will lead to across-the-board wage hikes for all lower and middle class Americans. We’d like to think so, too, but the fact remains that the average worker in our country has seen their spending power reduced since the market crash of 2008. We see it in the ripple effect of lagging economic growth, as fewer Americans feel they can afford to make big purchases such as cars, homes and long-distance trips. Even going out to eat requires us to check our bank accounts to make certain we can afford to do so.
Ironically, fast food restaurants are also feeling a financial pinch, as more Americans are opting not to eat their food. It’s not because they can’t afford it; it’s because more Americans are health conscious when it comes to what they eat. Why have a Big Mac and fries when it’s healthier to eat a salad topped with grilled chicken? And why do you think McDonald’s and Wendy’s have both made a major marketing push by advertising some of their healthier menu items? They know they need to draw more customers in, and they’re not going to do that by promoting slabs of greasy meat placed between two halves of a hamburger bun.
Yes, fast food workers deserve a raise, but so do people working at department stores, nursing homes, schools, ambulance companies and many other professions. We all need to make a wage that allows us to pay all of our bills on time, purchase gas and food, and still have money left over to get out and enjoy life. After all, that is the “American dream” — the one being lived by executives, professional athletes and entertainers.
Will raising the minimum wage to $15 an hour for fast food workers achieve that goal? We don’t see it happening, unless the government steps in like it is now. And even if it happens, other corporations may find ways to get around the wage hike by laying off workers and automating processes. After all, we’re talking about profit margin — the corporations’ sacred cow. As soon as the profit margin is compromised, all bets are off.
Raising the minimum wage for fast food workers might seem like a first step towards ending income inequality, but it’s only a tiny step at best.
