Profit margins are being squeezed so tightly at McDonald's that reports from the company indicate more than 900 restaurants are set to be closed.
The fast-food operator will reveal on May 4th the “initial details” of a new turnaround plan, including more details about the restaurant closings which will include some closings in China and Japan, in addition to the U.S.
Recently, egged on by behind the scenes union operators, protesters have been marching on McDonald's demanding higher wages.
-RW
BUT, the corporation is profitable, thus can and should pay even more. Demand creates it's own supply. If they only squeezed their profits harder, those stores wouldn't close.
ReplyDeleteIve been practicing Keynesanese. :/
An article in MSN Money informs that Dustin Moskovitz (co-founder of FaceBook) and his wife Cari Tuna are sadly following in the steps of Bill Gates in forming a charitable organization "whose mission is to figure out how, exactly, they should spend their billions to do the most good as possible." Amazingly (since it is occurring in their own backyard SV, SF and Oakland) they seem unaware of the unemployment caused by mandating higher minimum wages. The rather lengthy article makes no mention of the value in spending money to end this mandate. Despite the rather obvious fact that a successful, profit-driven business raised them into billionaire-hood. And this business paid Moskovitz less than minimum wage in its early operation giving him a chance to get his foot on the first rung of the ladder of success. No mention is made of building another business or helping others to get their foot on the first rung by eliminating the mandated minimum wage.
ReplyDeleteHmmm I wonder if the consumer not going to McDonalds has anything to do with this? Hahahahahah
ReplyDeleteThey should bring back the dollar double cheeseburger instead.
ReplyDelete