socialistexan:

“Thus the price is not determined by the cost of production of an item. Which means that, if we raise McDonald’s production costs by increasing the wages of the workers, the price isn’t going to change. For it’s not production costs that determine prices: it’s competition that does. Another way to put this is that McDonald’s is already charging us the absolute maximum that it can for its current level of sales. Thus it cannot raise its prices if its production costs go up.

“All of which means that the real change in the cost of a Big Mac, or the dollar menu, if McDonald’s workers were paid $15 an hour is: nothing. For production costs simply do not determine the prices that can be achieved in a competitive market.” – Forbes (not exactly s left wing org there)

“If the minimum wage were increased to $15 an hour, prices at fast food restaurants would rise by an estimated 4.3 percent, according to a new study. That would mean a McDonald’s Big Mac, which currently goes for $3.99, would cost about 17 cents more, or $4.16.” – https://www.purdue.edu/newsroom/releases/2015/Q3/study-raising-wages-to-15-an-hour-for-limited-service-restaurant-employees-would-raise-prices-4.3-percent.html my

People that scaremonger about “$17 burgers!!!!” understand absolutely nothing about economics. They also totally ignore that people having more money means more people spending money which means more sales tax revenue for states that have it, for instance Texas’s number one revenue is sales tax. Also it would make both a larger tax base which means more revenue to lower that defecit and the state would not have to fill in gaps since people would be able to pay for their and their family’s food, medical care, housing, insurance ect.

They only ever see the short sighted “but muh burger and profits!” and not the bigger picture.