How to Help Fast-Food Workers

Doubling the minimum wage may seem like a good way to help fast-food workers, but it would hurt them instead. So what should we do? We must sweep away the government-created barriers to income earning, barriers that protect established businesses from competition and rob the most vulnerable people of options.

Last week, fast-food workers engaged in 24-hour strikes throughout America to bring attention to their struggle to make ends meet. They have been demanding an increase in the minimum wage from $7.25 to $15 an hour and the right to organize unions.

The low minimum wage, however, is not the cause of their problems; it’s a sign of deeper factors holding them back. In fact, the minimum wage distracts us from the radical changes we must make if low-income workers are to advance. Those who fixate on the minimum wage unwittingly do struggling workers a disservice.

What workers need is greater bargaining power, and that comes primarily from having options. Unfortunately, the corporate state, which people mistake for the free market, closes off options. Anything less than removal of these obstacles is a cruel hoax on those seeking better lives.

What’s wrong with simply doubling the minimum wage? The answer is that wages are not arbitrarily set. Even in a corporatist economy, they result from supply and demand. This can be seen in an extreme hypothetical example, in which the minimum wage in the fast-food industry is raised to $100 an hour. What would happen to employment? It’s easy to see that it would plummet as the industry itself faded away. Why? Because, given the price of fast food, workers can’t possibly produce $100 worth of value for their employers in an hour.

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Comment by Wolf on August 7, 2013 at 9:20am: Isn't that the truth NWO. There is another store in Indiana that like Costco is going after Wal-mart who's policy is to value their employees as well as their customers. If only there was one close to me.

Comment by Nobody Will Observe on August 6, 2013 at 11:58pm: Shop @ COSTCO!!!

Comment by Tara on August 6, 2013 at 11:51pm

Comment by Tara on August 6, 2013 at 11:47pm: Worker Wages: Wendy's vs. Wal-Mart vs. Costco

CNNMoney.com/Cinnamon Tigner; Colby Harris; Cesar Martinez - The workers hold similar positions at these companies. Levels of experience vary but the wages are representative of the average worker we inter …more viewed. less

Can a company pay its workers well and also make money?

Many aren't quite hitting the right balance. Hundreds of dissatisfied workers at major American companies like Wal-Mart (WMT), McDonald's (MCD) and Wendy's (WEN) have joined protests nationwide in the past year demanding higher wages and better benefits.

One company that hasn't had to deal with such strikes is Costco (COST).

Comment by Wolf on August 6, 2013 at 5:33pm: That my dear would be a good first step...Kennedy already created the groundwork, in his memory we should make the Fed's illegal then tar and feather their minions large and small. I would venture 75% of the government are servants to the 1%.
Though, if people would REMOVE their investments from THE CORPORATIST then into the REAL WORKERS, CREATORS, DEVELOPERS then things could change. People I think do not realize how the CORPORATIST already know what it would take to get YOU to spend your money. Their daily motivation is getting as much out of you as possible, they invest millions. Through gas stations, grocery stores, sharper image, new computers, new and improved phones it is YOU that is the sucker...keeping up with the Jones.
Want to win? Take your money away from them. Change your life and yourself.

Comment by Skekzyz on August 6, 2013 at 2:48pm: What we need is honest lawful money as currency.

Comment by Wolf on August 6, 2013 at 9:21am: What workers need is greater bargaining power." Oh so true.
When I have to go to wal-mart (I live 20 miles to the closest store so of course wal-mart is one of the two options) I talk with the workers. Too many say, "I'm just glad/grateful to have a job". That is where the weakness resides. Grateful...really!?
If people would just stop buying the crap the wireless devices, the android cell phones, the huge flat screen tv, etc., etc. then things will change.
KEEP AS MUCH OF YOUR MONEY IN YOUR POCKETS THAT YOU CAN.

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