McDonalds recently teamed up with Visa and prepared a sample budget for their staff to indicate how they should be dividing their minimum wage salary to cover their living expenses, this appears to be a forward thinking and helpful union, except that the sample budget proves that it is practically impossible for people who earn minimum wage to make ends meet on a monthly basis.
The article on Death and Taxes mentions a few of the main problems with the sample budget. It is interesting to note that the budget includes an income from a second job, and the income from Mc Donald’s is based on the minimum wage earned by their full time employees.
A few problems with the sample budget are listed below.
Double Income – The assumption that all employees have the time to work at two jobs with the figures displayed being minimum wage at both jobs and a total of 74 hours a week, this leaves little to no time for the employee to spend with their family.
False Allocations – As the article states, there is no medical insurance provider that will provide medical insurance for an individual for $20 a month, let alone a family of 3 or 4 where medical insurance can increase to approximately $220 a month. There is also no allocation in this budget for basic utilities like heat, heat does not only mean the radiator that heats up your home during the cold winter months, this refers to your gas and geyser as well.
Missing Allocations – What about groceries? Does McDonalds assume that all of their employees do not need to purchase toiletries, cleaning items and food on a monthly basis?
Clearly the sample budget has been put together to indicate that McDonalds and Visa believe that it is possible to live on minimum wage, so long as you work 74 hours a week and do two jobs, forget about heat and hope that $27 a day is enough to feed a family of 4 or more. Maybe it would be a better idea if McDonalds and other companies paying minimum wage had to increase the wage to at least $15 an hour so that their employees can be happy and healthy.