Who Does a $15 Minimum Wage Help?

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  • Published on Aug 21, 2017
  • Would a nationwide $15 minimum wage help or hurt American workers? Andy Puzder, former CEO of the parent company of Hardee's and Carl's Jr., explains.
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    Script:
    Progressive politicians love to talk about raising the minimum wage.
    It makes them sound caring, compassionate, concerned. They’re on the side of the worker, standing against the greedy employer.
    The current call is for a national $15-an-hour minimum wage - more than double the current federal rate of $7.25.
    A number of cities and states are already there - including New York, California, Washington D.C. and Seattle. Others are considering it.
    The left casts the minimum wage debate as a war between employee and employer. But most business owners pay their workers as much as they can. Finding and keeping good people is the hardest part of any employer’s job.
    I know. For 17 years, I ran CKE restaurants, the parent company for Carl’s Jr. and Hardees. Our company and franchised restaurants employed over 75,000 people, but, as with most retail businesses, our profit margins were razor thin.
    Based on my experience, if we adopt a national minimum wage of $15, here’s what will happen:
    1. A lot of people will lose their jobs or have their hours reduced. According to a 2014 Congressional Budget Office study, just a $10 minimum wage would cost half a million jobs as businesses terminate employees. Obviously, far more jobs would be lost at $15 an hour. To survive, employers would have to reduce hours even for workers who manage to keep their jobs. That’s a pay cut.
    2. Businesses will close, and the jobs they created will disappear. A recent report from researchers at the Harvard Business School found that each $1 increase in the minimum wage results in a 4-10% increase in the likelihood of restaurants closing. An over $7 an hour increase, to $15, would be devastating not only for restaurants, but for small businesses and their employees.
    3. Young people will lose that entry-level job opportunity. My first job was scooping ice cream at a Baskin-Robbins in Cleveland, Ohio in the 1960s. I was paid just $1 an hour. But it taught me valuable lessons - like the importance of showing up on time, teamwork, and presenting a happy demeanor to customers. No one can get that better job until they have their first job.
    4. The cost of all workers will have to go up. If you hire a dishwasher at $15 an hour, your cooks will be unhappy with their wages. You’re going to have to pay everybody more, which increases labor costs across the board. That’s more pressure on profits. Too much pressure and you’re out of business.
    5. Fewer people will open businesses. $15 an hour is a very steep hill to climb. Would-be entrepreneurs will do the math on labor costs and realize it’s just not worth the risk. This is a real cost to the economy that we can’t measure. A company that never exists never employs anyone.
    6. Prices for everything will go up as businesses pass higher labor costs along to consumers. One of two things will happen: Either consumers won’t pay the higher prices and businesses will lay off workers or close, or consumers will pay higher prices and have less money to spend elsewhere. Either way, the higher minimum wage will represent a drag on the overall economy.
    For the complete script, visit www.prageru.com/videos/who-does-15-minimum-wage-help

Comments • 10 603

  • Spicy Meatball
    Spicy Meatball 9 hours ago

    Astounding that almost 4,000 people disliked the video.
    This video is economic common sense. I'm surprised it even needs to be explained at all.
    Excessive minimum wage hikes are wildly counter productive. When you increase the cost of labor, you increase the cost of production, which increases the cost of living, which totally negates the minimum wage increase.
    It drives inflation, closes business, removes jobs, and puts more people on welfare. The tax take is reduced, tax spend is increased, and all personal wealth losses some of its value (thorough the inflation).
    There is absolutely no justifiable excuse to do it.
    *Yet socialist politicians see this as a win-win.*
    To them, they get to look sympathetic by implementing it. They get to blame capitalism when the jobs go away. And they get more supporters from the vast new swath of welfare dependants they create.
    Then they get to argue for nationalising industries to replace the jobs they destroyed. Another move that replaces tax producing jobs with tax consuming jobs. And that drives the same cycle again.
    Socialism is a creeping rot on an otherwise prosperous society. It's perpetrated entirely for profit by immoral political actors.
    And yet nearly 4,000 viewers of this video are buying into it.

  • Ilham Kusuma
    Ilham Kusuma 11 hours ago

    US must dismantle minimum wage policy. it is a socialist policy and it is bad. let the market works. if good employee value him self better then current income, he can find another company to work with. no hate no discrimination. market is humanism.

  • ByoungJin Kim
    ByoungJin Kim 12 hours ago +1

    in s.korea, the increase of minimum wage causes massive unemployment in small stores. and decrease of the income of the poor house . thus the income gap btn the rich and the poor enlarges. it's failed policy in korea. plz never do that foolish policy ,

  • Sunny Sider
    Sunny Sider Day ago

    Or we could curb immigration and stop the influx of 21 million illegals... which drive up the cost of living by having more children than the general population.

  • Fluxed DeLorean
    Fluxed DeLorean Day ago

    These workers are like parasites. If they kill their host(job)... they die too.

  • My Buisness
    My Buisness 2 days ago

    I don't know what minimum wage is, the government keeps raising it penny by penny, every 50 yrs. But I do know this, everything else is getting higher and higher and higher. Raise the minimum wage??? Why not bring prices down on things we need, then I can afford something.

  • Ceefax BBC TV
    Ceefax BBC TV 3 days ago +1

    Every left-leaning would-be snowflake should be made to watch this excellent video time and time again until this wise and correct message sinks in!

  • Logan Chadwick
    Logan Chadwick 3 days ago

    They whant a minimum wage yo be a life wage

  • CjLegend
    CjLegend 3 days ago +1

    Agreed with the video except for one small point: I don't trust the company to compensate me fairly, the more they can undercompensate their workers, the higher their profits. Besides, the bigger problem is not losing jobs to higher minimum wage, its losing jobs to automation and AI, Its not really a good job to have if it can be easily and cheaply replaced with a computer.

  • Kamelot19
    Kamelot19 4 days ago +1

    companies should apply to workers... not the other way around

  • Blue Knight
    Blue Knight 4 days ago +3

    2:18
    Worth remembering, 1 1960 United States Dollar has the purchasing power of 8.65 Dollars today

  • Michael Mohrle
    Michael Mohrle 5 days ago

    But the CEOS can keep getting raises? Why all these things he says does not happen? And who will cover the shifts when hours are reduced? You still need to pay the other guy $15 hr. Rich peiple need to share the wealth before this country falls apart.

  • TheNextTurn
    TheNextTurn 5 days ago

    Wow I didn't realize that I actually want a lower wage ...

    Yea please lower my wage ... comon the corporations in the country have it so bad.
    I heard about a CEO that can only afford ONE private jet.
    Please ask you boss to lower you wage to 5/bucks an hour ... lets save those lost jets for our CEOS.

    This is a serious problem ... if everyone asks for lower wages we all win.
    Right?

  • Diello Arias
    Diello Arias 5 days ago

    It's so simple math, yet millenials can't handle it.

  • Franz Ferdinand
    Franz Ferdinand 6 days ago

    Something you missed - employees being replaced by machines. That happened where I work. The owner bought two machines and our crew went from 23 to 16. Seven entry level jobs gone just like that.

  • Jon Kozlowski
    Jon Kozlowski 7 days ago

    Lower taxes and remove uneccessary taxes, cut the cancer that is wasteful Fed, State city gov. spending. There are alot of things that need to be done to make livable wages again

  • T-Dawg
    T-Dawg 8 days ago +1

    If you can't figure out how to make a profit while giving your workers a living wage, that maybe you SHOULD be out of business.
    Minimum wage is obviously not an issue for all businesses, only those who make their money by exploiting their employees.

    • DamienrocksGAMING
      DamienrocksGAMING 8 days ago

      T-Dawg It is funny how wrong you are...
      Have you ever made a business especially in the food industry?
      Inspections, taxes, bills, leases, licensing fees etc all cost money. Money no small business owner can negotiate it’s all going to cost what it will cost.
      And afterwords come buying supplies for making the food to sale, and then paying employees. It isn’t exploitation of employees, if anything it’s exploitation of small businesses!
      Any business that isn’t Amazon is being drowned in taxes fees etc, meanwhile people like you spout the uneducated manure that you just did. Go learn business and economics before you claim to know anything about it moron.

  • Dennis Glancey
    Dennis Glancey 8 days ago +1

    I think the minimum wage should be raised a little bit but not to $15 an hour

  • Eros Baruc León
    Eros Baruc León 9 days ago

    Singapore is one of the most expensive cities in the world and they dont have minimum wage

  • Darren Navarro
    Darren Navarro 10 days ago

    Maybe not 15 dollars an hour but a lower in prices????? Food, cars, insurance, etc?

  • Claudiaa147
    Claudiaa147 10 days ago

    why would i listen to a greedy CEO?

  • Erin Crone
    Erin Crone 11 days ago

    15.00 hour minimum wage only means one thing. Cost of living will go up. So then the McDonald's lifers will bitch. Then they get a raise and here we go again. Get a better paying job.

  • Michael Patrick
    Michael Patrick 11 days ago

    I know collage grads who dont make 15 an hour. Is that fair to them??

  • Americans FIRST GodBlessAmerica

    Common sense - not so common any more.
    There should be an IQ exam to join Politics to run OUR country.
    Congress right now = IDIOTS

  • Americans FIRST GodBlessAmerica

    Politicians and no one else

  • Jaxson Gross
    Jaxson Gross 11 days ago

    I can tell who it’ll help. Nobody because the more a burger flipper or a shelf stacker gets paid, hey let’s use some common sense prices and taxes will go up ridiculously.

  • Unamused Woof
    Unamused Woof 11 days ago

    15$ an hour helps those who can afford it... IE., big busines who want to keep a monopoly, and shut out small businesses.

  • Heavy Platinum
    Heavy Platinum 12 days ago

    Minimum wage is not meant to make a living off of it, it's to help you start out to get a better job in the future. Minimum wage is a lie and doesn't help any of the common people at all

  • Daniel Von Pache
    Daniel Von Pache 12 days ago

    Legislative hikes of wages is one of many inflationary mechanisms that destroy competitiveness(the saddest of all seeing moms-&-pops die); ramps up M&A activity and "restructuring" as in layoffs; motivates conglomerates and super entities to expand by adopting automation and/or manipulate work hours thereby socializing their related labor cost; disincetivises foreign investment and makes US unattractive; gov to expand their tax revenues initially & when the $hit hits it emPOWERs them on both teams to over-promise and under or mis-deliver as always vs., dealing with the HEART of the matter which is flagrant and pervasive corruption of nearly ALL governmental systems inextricably self evident via failures in affairs both domestic and foreign in conjunction w/symbiotic competition between corporate greed and government's insatiable strive for power inching ever so closer to tontotalitsrian w/every election reality show. I'm just sick to my stomach & of it anymore and thus, I suggest you bypass and starve this maniacal BEAST entirely & pay $0 in taxes(like Donald) via real estate investments and legally and, conduct commerce in other than fiat as much as possible and especially not credit or debit cards.

  • Kevin Mitchell
    Kevin Mitchell 12 days ago

    This how they trying to ruin our growth under Donald Trump

  • Scott Yano
    Scott Yano 13 days ago +1

    Either companies need those workers or not. The bounded rationality in this crap laden monologue is unbelievable. 3 people have more wealth than a full half of the American population.

  • Kenneth Price
    Kenneth Price 13 days ago

    Has anyone been to Burger King lately? $15/hour? C'mon. True story. Went there a couple of weeks ago and for whatever reason they couldn't make burgers or fries. Only chicken and ice cream

  • Kenneth Price
    Kenneth Price 13 days ago

    I agree with the principles in this video. I do not believe a $15/hour minimum wage would solve much.

  • RobertoLopezstudyis
    RobertoLopezstudyis 13 days ago

    This video is saying the truth about raising the 15 dollar an dollar will hurt both employees and employers and many businesses will cut hours to their employees and lay them off and many stores will be force to close and raise the prices on their items. I am against the $15 an hour wage and the democrats are the liars and mentally retarded people who think they are helping workers! Shame on them!

  • slayerette86m
    slayerette86m 13 days ago

    ....meanwhile, tax payers fork the bill because workers aren't earning a real wage.

  • Craig Shields
    Craig Shields 15 days ago

    Be smart people. The guy speaking is the billionaire buddy of Trump and CEO of Hardees and Karl's Jr. Of course he doesn't want to pay a living wage. Look at the history of workers in this country. Companies will never do the right thing by workers and the community unless compelled. They will work children, ignore safety warnings, poison your water, give you cancer with power lines all in the name of profit. The tobacco industry knew it was causing cancer but kept it quiet so it could continue making money. A 40 hr a week job should be enough for anyone to live in this country.

  • Tokes Alotta
    Tokes Alotta 15 days ago +1

    Wage is only one half of the spectrum. Cost of living is the other. Minimum wages -- if any, should be based off of purchasing power in particular regions -- such as a percentage of the cost of living in those areas, not a set countrywide dollar amount.

  • Tokes Alotta
    Tokes Alotta 15 days ago +2

    This only hurts employers and employees in places like rural Kansas, but helps big employers in places like Silicon Valley.

  • Tokes Alotta
    Tokes Alotta 15 days ago +29

    I'm sure companies like Amazon love the idea of a $15 minimum wage. Nothing like having the government help put your small competitors out of business.

  • Gray Raven
    Gray Raven 16 days ago

    We have way more people in USA w/o education whom cannot work thier way up to higher wage careers. Many today are working min wage jobs until they reach the funeral home or graveyard. Their income is augmented via state and federal social programs. THAT money comes from YOU ! and your wallets when you pay federal and state taxes. Why should the average hard working American subsidize someone elses business overhead of wages ! Put that monkey on the back of the wealthy businessman who have 3 homes, 6 SUV's and two yachts ! A living wage is needed / required now, its not the 1960's anymore.....then let economy and technology move forward. Those who lose their jobs will do exactly what many did in 2008 and rediscover themselves gravitating to another job description.

  • Gage Sims
    Gage Sims 16 days ago

    45 years of stagnating minimum wage increases, skyrocketing inflation, increasing cost of living, insane cost of healthcare, and ridiculous cost of higher education. Sounds like the economy was built on another bubble about to burst.

  • Thy _ Ralvaro
    Thy _ Ralvaro 16 days ago

    Also the more you make the more the government steals from you to give to illegal immigrants. Goodbye 35% of my hard earned money. It's not like I have bills to pay.

  • another guy in the comments section

    i did some math, and with a $15 min wage for a 8 hour day, that is $120!

    • Brent Willis
      Brent Willis 15 days ago

      Here is some math, put his $1 in 1960 (minimum wage at the time) into an inflation calculator and realize he was making $8.65 in today's dollars. He made 20% more than a minimum wage employee does today.

  • Nickolahs Perez
    Nickolahs Perez 16 days ago

    I'm in ca and I dont get $15 I get less

  • John McAfees Shitposter

    I got a prageru ad on this lol

  • yodhangzien
    yodhangzien 17 days ago

    I’m busy my ass with little money

  • yodhangzien
    yodhangzien 17 days ago

    Supervisor make 50k manager make 90k

  • J G
    J G 17 days ago

    It doesn't help greedy employers.

  • Mike Evans
    Mike Evans 17 days ago

    Better idea is a maximum wage that is retroactively applied of $1 a year for all politicians and$2 a year for bureaucrats.

  • Christopher Bellore
    Christopher Bellore 18 days ago +1

    Sorry Andy, I listened to the rest of it, and I'm still not buying it. Your reasoning is lopsided, and so is your pount of view.
    Slave labor in America is just that; slavery. Having a "job," at the expense of my time, and energy, and focus, and not being compensated enough to keep up with the demands of the cost of living is just bad economics, and very sad, and foolishness for the employee. It's a waste of life for a single mom with 2 children to have to go to a place of buisness where she sweats all day breaking her back for her condescending boss, and snobby customers, and she's got nothing to show for it.
    Nope. That's no way for anybody to be employed.

  • Christopher Bellore
    Christopher Bellore 18 days ago

    There's a first time for everything. This is the first Pragur University video that I didn't like! I'm only at the 2:19 mark of the video, and already I'm not buying it.
    In the 1960s when you were scooping ice cream for $1 per hour, how much did that ice cream cone cost for the customer? How much rent did you pay, and what was the price of a gallon of gas? All these things factor in to the wage you were getting paid. Today everything cost far more than the salarys people are receiving. It doesn't match up.
    And if restaurant buisnesses, and others have a razor edge profit margin then those buisnesses should close, and people can eat at home instead.
    I just don't like the sound of this guys voice. His reasoning seems wrong.

  • Natalie Z
    Natalie Z 18 days ago

    I'm fine with my job making 9.25 an hour, and they want more money, work more hours, plain and simple.

  • Tammy
    Tammy 18 days ago

    Bullcrap

  • Luke Silletta
    Luke Silletta 18 days ago

    But I was told all these business owners are millionaire 1%'ers. Don't they have endless stacks of cash to pay these people?

  • Ewan Finley
    Ewan Finley 21 day ago

    absolute cancer. welcome to hellworld

  • James N
    James N 21 day ago

    Socialism has never worked!

  • Sharon Efee
    Sharon Efee 22 days ago

    Question is: how people's lives look with 75. Can they live without starving? (I don't live in the US, bur if here the minimum will be 7 dollars, it will be even harder for people to end the month).

  • Antoine Michaels
    Antoine Michaels 22 days ago

    a $15 minimum wage is a hidden tax on corporate America, the more an employee makes the higher taxes they pay. government wants the people to believe it's looking out for them but in reality it's a tax that benefits the crooks in government.

    • Full Moon
      Full Moon 21 day ago

      @Todd T wow that was amazing explaintion. Thanks Todd!

    • Todd T
      Todd T 21 day ago +1

      @Full Moon If you pay people more, they will pay more taxes. The government tells the employer that is a restaurant corporation which makes certain amount of money and pays a fixed amount of taxes because it's profits are set. If that company is expanding, the profits will stay the same but their revenue will go up as they add more restaurants and employees.

      Now if that restaurant corporation pays the majority of employees more, all those employees enter the next income bracket and have to pay more taxes. In the Prager story above, that might be 40k to 50k employees who will enter the tax bracket above where they are now. So by forcing the corporation to pay higher wages, the government has more revenue from taxes at the corporation's expense and at the employee who doesn't understand they won't see full benefit. The government also knows if people get extra money, they will buy more (instead of lifting themselves up financially) and stimulate the economy. Since the prices for everything affected goes up to compensate, now I, who is a user of a product or service pays more AND because the price is higher...so are the taxes. More government revenue.

      The employer faces with less profits cuts cost by dumping some employees and moving to automation. The people who thought they were going to get $150 per month more get their hours trimmed and pay more tax so they never see the full benefit they thought they were going to see. Work benefits get cut and if you are moved from full time to part time, you lose your benefits.

      Why doesn't the corporation just give more money? If they are public, they borrow money from investors whom they have to answer to. Most people without money believe to be an investor you are rich, but a lot of investors just make the national average income and have saved money to try to get ahead. Investors are not massive corporations with endless pockets, they are normal people who are technically gambling because things like a mandated minimum wage hurts their investment, which was going to aid in their retirement.

      If the corporation doesn't keep the numbers up, the investors leave and they have no capital for competitive upgrades, re-branding, rebuilding and maintenance. The other companies that figure out a way to keep their numbers up will gain investors and capital and will put the first one out of business and then EVERYBODY loses their job at that company. The investors have a stake in the company and will take their money back and there is nothing left for any employee to sue for. The investors have the most right OVER ALL EMPLOYEES because they gave the corporation a loan which is risky and to mitigate that risk the companies guaranteed their money (not profits) by basically placing a lien on the corporation itself.

      This is why Sears had to pay out the investors as they closed. That was the deal they made when they borrowed money from someone else. Again, the investors are not some giant faceless corporations they are a syndicated pool of smaller investors to took on risk based on the companies forward looking statements that DID NOT have the provisions for a mandated minimum wage increase.

      It's all painted pretty to invoke the us vs them mentality. They are all up on a hill watching the corporations and the little guy fighting it out like seagulls over breadcrumbs.

    • Full Moon
      Full Moon 22 days ago

      Wow thats profound. Where did you get that from so i know if its true

  • mokingbird84
    mokingbird84 23 days ago

    Try living on 7 dollars an hour un NYC

  • Conservative N'at
    Conservative N'at 23 days ago

    It helps people who do minimum work and expect maximum pay.

  • metalslugmasters
    metalslugmasters 25 days ago

    Baby boomer economic model, it's falling these days. The internet is the future.

  • Tweety Song
    Tweety Song 26 days ago +1

    I went on a week long school trip to California from Utah with $100 from my parents and a small thing of cash. I came back in debt to my friend because everything was so much more expensive there. I found out the minimum wage there was about $10 compared to the $7.50 I was used to.
    I think everyone needs to take at least a basic economics class.

  • Tweety Song
    Tweety Song 26 days ago +1

    Raising the minimum wage simply sends more people under the poverty line. Basic economics, people!!

    • Tweety Song
      Tweety Song Day ago

      @Jack The Boss
      I recommend you watch the video, but if you insist, I'll quote it.
      Let's say we raise the wage to $15. The first thing that would happen is prices would rise to compensate because most businesses, especially smaller businesses, can't afford to pay $15 per person.
      So now a hamburger from McDonalds is $10. Well, I'm not paying for that, and most folks won't either. Not only will these businesses be handing out more money to their employees, but they're making less money on top of it. The business can either keep a couple people and get rid of everyone else (which will make the job far more stressful with less people doing more jobs) or simply go out of business.
      This isn't even getting into technology taking jobs (technology never needs to eat or sleep or get paid), or the lack of reason to give employees any sort of benefits.
      And don't even bring in the idea of socialism. Look at Venezuela. The rich people will move, or get all their money stolen from them, and once there isn't any money for the government to take, the Maduro Diet will take hold. The good news is I've heard most adults lose about 19 pounds.

    • Jack The Boss
      Jack The Boss 25 days ago

      Tweety Song How?

  • david bleh
    david bleh 26 days ago +1

    Automated kiosk makers and unemployment office public employees!!!

  • Thefirstgalaxybeing
    Thefirstgalaxybeing 26 days ago

    Who Does a $15 Minimum Wage Help? Only the IRS.

  • EU-Verfassung2004
    EU-Verfassung2004 27 days ago

    Strawmen argument. 15$ is obviously too much but how about 10 $?

  • Hardesty Hardesty
    Hardesty Hardesty 27 days ago

    Oh I love hardees!!!!!

  • Deb Bucy
    Deb Bucy 28 days ago

    Don't like working for minimum wage? Don't wait for rich politicians who dont pay THEIR OWN EMPLOYEES FAIRLY to help you.
    Gather your references, write a resumè and apply for a better job. Repeat until you get a better job at better pay.

  • Johan Mattlin
    Johan Mattlin 28 days ago

    Even the Nordic countries that democrats often look up to understand that a minimum wage doesent help anyone. And becouse of it Norway , Sweden and Finland all don't have any minimum wage .

  • Jon Gallez
    Jon Gallez 28 days ago +3

    There is a lot to be said about the opportunity that gets missed in all of this. What politicians paint is that these workers have zero ability to negotiate or move their salary, that's wrong. Having the chance to work your way up, learn valuable skills at a managerial level will transition into many different jobs and I know this from years of personal experience. You get what you put in regarding minimum wage jobs.