Declining McDonald’s Mocked for Resisting Higher Wages

Why is McDonald’s mocked for trying to stay afloat?

ronald mcdonald sad

Cory Doctorow at BoingBoing is all outraged that McDonald’s is fighting Seattle’s tremendously high minimum wage. He can’t believe that people who are merely being forced to do things against their will under the threat of violent punishment would think they have any reason to appeal to the Fourteenth Amendment—because that was about slavery.

He even trots out the Liberal cliché about how corporations aren’t people. This is a convenient fiction that liberals use to pretend that they aren’t coercing and punishing real people. They are only giving orders to a “corporation,” after all. The people who actually have to obey or be punished don’t really matter because the corporation is abstracted from them.

Except real people will be jobless if McDonald’s fails to stop Seattle’s idiot law.

Doctorow seems to think that this is a no brainer, that McDonald’s is simply fighting the law out of greed, not because they actually can’t afford to pay people that much. He needs to wake up. McDonald’s could seriously become like Border’s or Circuit City in the near future. The New York Times reported yesterday, “Changing Tastes Blamed for Slide at McDonald’s.”

A week after installing a new chief executive, McDonald’s announced on Monday that sales continued to fall in February.

The company said its sales in stores open at least a year fell by a startling 4 percent in the United States and by 1.7 percent globally.

“Consumer needs and preferences have changed, and McDonald’s current performance reflects the urgent need to evolve with today’s consumers, reset strategic priorities and restore business momentum,” the company said in a statement.

Same-store sales have declined more than Wall Street predicted for more than a year in the United States, the company’s largest market, and it blamed “aggressive competitive activity” for the latest sharp shortfall.

Maybe this is happening because the economy is so bad or maybe because consumers are beginning to question whether McDonald’s is the best place to eat. Either way, doubling their labor costs is not going to allow the company to last.