McDonald’s sales have declined drastically in the last month.
Why should conservatives care about a fast food chain? There are two special reasons. The first is that we are constantly bombarded with propaganda about a “living wage” or at least an increase in the minimum wage law. Obviously, McDonald’s cannot afford that. Unions and other liberals continue to treat McDonald’s as a hoarder of money, when they are in fact a vulnerable group of restaurants.
The other reason is that it shows that the Obama “recovery” is highly suspect. Economic forecaster Marc Faber has suggested that McDonald’s is a sign of how the economy is really doing.
And it seems, from McDonald’s latest news, that the economy is not doing that well. As “Tyler Durden” of Zero Hedge scathingly writes: “McDonalds Implodes, Reports Worst US Sales in Over a Decade.”
If one ignores all traditional, staple indicators of a growing economy, such as stable (not plummeting) crude demand, stable (not plummeting) holiday spending and stable (not plummeting) McDonalds comp store sales, then indeed the US economy has “decoupled” from the rest of the world, and those who wish to demonstrate the same intellectual capacity as Tim Geithner, will welcome you to the (latest non-) recovery.
And yet for those, who are leery of seasonally-adjusted government data (showing soaring low-wage jobs offset by crashing employment in the energy sector and M&A synergies which mysteriously are never captured), or sentiment surveys and confidence polls (of Wall Street executives and government workers), here is the latest data from McDonalds. Showing the worst US comp store sales in nearly 12 years at -4.6%, one does wonder if following America’s inability to even pay for sub-$1 meals, mass starvation will follow?
Here is a graph he provides:
I would love to think that part of McDonald’s woes is due to the fact that people are shifting their eating habits and are giving up on McDonald’s to keep their refrigerators stocked with butter.
But that is doubtful.