(October 10, 2016 at 3:44 am)Aractus Wrote: I just saw this ... a BigMac in USA costs USD 0.74 more than a BigMac in Australia, despite our minimum wage being about double. So much for the argument that high minimum wage = higher prices...
Its widely known that the margin on restaurant food through the roof. Not every business segment operates on 200% margins. Or even 100% or even 50%. There are many business segments where just a wage increase of 66% with no other cost increases will push the ledger into the red because margins are that tight. Short of Government subsidies or something similar, there is simply no way those business segments could sustain a minimum wage increase of 66% without raising their prices.