Stock prices for fast food companies shot downward in the last day or so, and analysts are chalking it up to a host of factors, including Obama's call
for an increase in the federal minimum wage.
Business Insider reports
on the dipping stock prices of McDonald's and similar eateries, and points to the payroll tax hike, higher gas prices, and flagging consumer demand among other reasons for the drop in investor confidence on the fast food front. But the minimum wage proposal from the POTUS is also on the list of reasons for the fast food stock drop. And for that reason, it's efficacy in boosting economic prosperity for less-skilled workers is being called into question.
Harvard economist Greg Mankiw observed
in 2006 that no consensus exists among those in his profession on the impact of the minimum wage: 52% supported it
(of whom 38% wanted it raised), while 47% believed it should be eliminated.
Via Business Insider and Greg Mankiw