The reason they support it is because it is more likely to put more smaller independents out of business. It consolidates their market position and gives consumers far fewer choices, entrepreneurs higher barriers to enter the business, and workers fewer opportunities to find a job. Say good-bye to your local diners. Pyrrhic victory at best.
McDonald’s CEO Don Thompson recently suggested his company would support a bill, proposed by President Barack Obama, raising the federal minimum wage to $10.10 an hour from $7.25. Such a wage hike likely wouldn’t satisfy his workers, some of whom recently stormed the company’s Oak Brook, Ill., headquarters demanding $15 an hour. But it would be a noticeable shift in attitude for the world’s biggest restaurant chain, which has so far been neutral as the debate about higher wages has roiled around it.