Mcdonalds Should Minimum Wage Be Increased

An example of a real-world business decision with government and societal dimensions is McDonald’s recent decision to increase their minimum wage for employees to fifteen dollars an hour. As a result, the government is under pressure to consider increasing the minimum wage across the board.
While employees will benefit by having more money in their pockets, if small business owners are forced to pay their workers the same, they may find that they can’t afford to pay this amount without being forced to close as a result. “Some businesses will cut jobs to pay employees more and that would be a reduction of workers across the labor market, it can lead to unemployment, hurt business and raise prices” (Wihbey).
On one hand, tax payers would no longer have to pay for low income employee benefits through government programs such as Medicaid, Food Stamps, or other public assistance. On the other hand, the cost of paying for hamburgers will increase. Not only will the price of paying for hamburgers raise, but also the price of items across the board will increase.

It would also decrease turnover rate and motivate the workforce which would lead to better customer services and increase a company’s production.
The increase of minimum wage the impact would be more direct for franchises and stores. Although, in the long term the profitability and health of franchises are obviously important.
I think that raising the minimum wage rate is good for employees to improve their economic well-being and I believe that the economy would adjust gradually. In addition, the tax payers would benefit and government expenses would be