This article appeared online at TheNewAmerican.com on Monday, February 20, 2017:
James Sherk, a Hillsdale graduate and now the Bradley Fellow at the Heritage Foundation, found that if a $15 minimum wage is enforced across the country, fast food prices will jump far more than initially thought. A 10-piece Chicken McNuggets, currently priced at $4.49, would jump to $6.20. A Starbucks Grande Mocha Frappuccino would increase from $4.56 to $6.29, while a 6-inch turkey sub at Subway would cost $5.87, up from $4.25. A Whopper Meal from Burger King would jump to $8.96 from $6.49.
A CrunchWrap Supreme, Crunchy Taco and large drink from Taco Bell would cost $8.27, up from $5.99; a Wendy’s Son of Baconator Combo, currently $6.69 would cost $9.23; a Chick-fil-A Chicken Sandwich Combo, priced at $5.95, would cost $8.21; and a Pizza Hut Medium Hand-Tossed Cheese Pizza, on today’ menu at $11.95, would jump to $16.55.
That’s a 38-percent increase, far higher than many old-school economists have concluded, and it puts the lie to union claims that raising the minimum wage to $15 an hour would result in a transfer of wealth from rich business owners to low-paid workers. Sherk’s analysis concludes that there would be a transfer, but it wouldn’t be from the business owners: It would be from their customers.
First, those owners with a McDonald’s franchise aren’t rich and they’re not likely to become rich. Ed Rensi, who worked for McDonald’s for 30 years, ending up as the company’s CEO in 1991 and retiring in 2007, told Forbes: