Burrito economics: Republican claims about price rises are so much hot air
- Thread starter Frederick Foresight
- Start date
Everything else is not going up 10% so I would rather stay in the land of facts versus hypotheticals. Chipotle proved it can raise its wages and pass on the cost and stil thrive as a business.
So everyone who says it cannot be done was just proven wrong with an example.
Well if Chipotle has plenty of job openings at even better pay then then there is no reason to hand-out pandemic unemployment cash to have people sit at home anymore. The openings at Chipotle and many other businesses prove there is no reason for tax dollars to be handed out to those refusing to hunt for a job.
I wonder if they would still be in business if they lowered executive pay. My guess is they would.
well the supply chain hasn’t pass through yet.
are your import costs going up? Are you passing it on or eating it? I assume you are eating it because that would be fair.
That of course is a separate issue. All companies never touch the C-suite employees when it comes to pay which is why the argument that raising wages of the low level employees would hurt business is just a bunch of bullshit. It only hurts the rich top level execs who don't want to budge an inch. Also if your net profit margins go from 7.8% to 7.3% because you raised wages then poor executives is what they will cry.
Fast food places can only raise prices so much so this idea that they will jump their burrito from $7 to $12 is not going to happen. Besides, I don't feel sorry for people crying over paying more for a burrito, not like they are being denied health care or insulin.
Most arguments are always hypotheticals with extreme exaggerations. If Chipotle is doing good business they can do what they did. If they cut salaries to boost bottom line profits for the executives then they will get shittier front line employees handling their food and customers and deserve to lose money. This has popped up a few times on Undercover Boss.
Wages are driven by supply and demand for labor. The price increases at Chipotle are driven by having to pay more for labor. The increased labor costs are driven by Chipotle having to pay more money to compete against the government for labor who is paying people to sit at home to do nothing with your tax dollars. The connection is very direct.
Chipotle has no control over the government paying unemployment or what the government does, it is 100% selfish on its own interest. Chipotle is .000000000001% of the labor pool so it really is not making decision on what U.S. government is doing with its unemployment benefits. As many people as there are to sit on their ass if hte government lets them, there are always people looking to get a job. If government drops the benefits sharply on unemployment, Chipotle is not going to suddenly cut the wages to everyone.
Seeing that raises are rising throughout services, retail, and restaurant industries --- and it all is driven by a shortage of labor. And the shortage of labor is an artificially created situation caused by the government paying people to sit at home. Your claims are not holding up well on a macro level.