Quote:Chiefjag I fail to see what you are saying. If Wal-Mart McDonalds etc are always going to undercut you then why would raising or lowering minimum wages change this?

McDonald's and Walmart can afford to eat a lot more of that wage hike than a local business could. A local business may well have to pass that cost through at a 1:1 ratio to bear it. McDonald's, on the other hand, has incredible volume and much lower supply costs, so it may be able to pass that increased labor cost through at a significantly lower ratio

 

If I'm on lunch and I come across a burger joint, I would probably go ahead and buy the local burger/fries combo for $8 even though I can get a similar one from McDonald's for $6.

 

If the local place raises its combo price to $16, and McDonald's only raises the price of their combo to $10, my wallet might take me to Mickey D's, even if my heart and stomach want the local burger.

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