Darling Husband also agrees with me… and agrees with the article. And this is what he wrote in August:
So, I saw an article about how the SEIU wants to vastly expand strikes against McDonald’s and other fast food joints.
Which makes me ask, “What do they want?”
So I read the article here: http://www.salon.com/2013/08/14/fast_food_strikes_massively_expanding_theyre_thinking_much_bigger/
…and they want pay increased to $15 an hour.
So, is that realistic, I wondered. Is that even POSSIBLE, I wondered.
Fortunately, I can do math. And I will show you my figures, so you can check me.
So, I pull up McDonald’s financials from here: http://www.marketwatch.com/investing/stock/mcd/financials
And I find that McDonald’s makes a net profit of $5.46 billion a year.
And I find (per Wikipedia: http://en.wikipedia.org/wiki/McDonald’s) that all told McDonald’s has 1.7 million workers.
Awesome! That’s what we need.
5,460,000,000 / 1,700,000 = total potential increase per worker per year of $3211.76.
$3211.76 per year / 52 weeks = $61.76 per week.
$61.76 per week / 40 hours per week = $1.54 per hour. (Or $2.47 if they’re part-time working 25 hours.)
What does this mean?
It means that if McDonald’s were to increase wages by $1.54 an hour, it would TOTALLY ERASE THEIR OPERATING PROFITS.
I find an increase of six or seven dollars an hour to be comically unlikely and mathematically and financially impossible, simply by application of basic math.
So should you.
And if you, like me, think that possibly eliminating 1.7 million jobs – even if they are cruddy jobs – is not a great idea. More people need to be aware that math doesn’t stop operating just because it disagrees with your politics.