Living Wages and Big Macs

A student at the University of Kansas School of Business did a little financial modeling based on annual reports from McDonald’s to see how much menu food items would rise in the theoretical case where employees were paid $15 an hour. The results: Big Macs would increase by 68 cents to $4.67, and items on the dollar menu would see price increases of 17 cents. Of course, this is theoretical, and an economics professor from the school calls it “a leap of faith” because that kind of wage increase would have huge, unforeseen effects (besides, you know, changing the lives of everyone who works at McDonald’s).