$15 an Hour? Not so Fast

“…increasing wages to $22 an hour, which the Bureau of Labor Statistics says is what the average American private industry employee makes, would cause a 25 percent increase in prices.”

By Matt Johnson

According to a recent press release and economics study from the University of Purdue,

Raising wages to $15 an hour for limited-service restaurant employees would lead to an estimated 4.3 percent increase in prices at those restaurants.

The study, which was conducted by Richard Ghiselli from the School of Hospitality and Tourism Management at Purdue University, and Jing Ma from the School of Hospitality and Tourism Management at Purdue University, not only focused on what would happen if wages were increased to $15 an hour in limited-service restuarants, for example McDonald’s, but the researchers were also interested in what would happen if wages were increased to $22 an hour. According to the study,

…increasing wages to $22 an hour, which the Bureau of Labor Statistics says is what the average American private industry employee makes, would cause a 25 percent increase in prices.

You can read more about this press release and economic study at Purdue University News.

For more news, see Modern American Journalism, Not a Place for Science.

**Remember, there is nothing more American than discourse. You are always welcome to post your comments, thoughts, and questions below. Feedback is always appreciated!

 

 

 

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