The Fast Food Swindle: $7 Billion In Taxpayer Cost Every Year
Following successful strikes on August 29, 2013, the UC Berkeley Labor Center published a report showing the very high cost of low wages in the fast food sector.
Among their findings:
- More than half (52 percent) of the families of front-line fast-food workers are enrolled in one or more public programs, compared to 25 percent of the workforce as a whole.
- The cost of public assistance to families of workers in the fast-food industry is nearly $7 billion per year.
Following that report, the National Employment Law Project found that the top fast food employers are the biggest beneficiaries of that assistance:
|Company||Estimated Average Annual Cost of Public Assistance Provided to Employees|
|YUM! Brands (Pizza Hut, Taco Bell, and KFC)||$1.2 Billion|
|Burger King||$436 Million|
|Dunkin’ Donuts||$274 Million|
|Dairy Queen||$228 Million|
|Little Caesars||$125 Million|
Additionally, the report found that the top five fast food companies profited a combined $7.44 billion while purchasing $7.7 billion in stock buybacks for the benefit of executives and investors.
People working in fast-food jobs are more likely to live in or near poverty. Meanwhile, fast food corporations are posting records in profits and buybacks while spending billions on advertising and millions on corporate jets.
If the stark difference between workers and executives becomes too much McDonald’s has sage advice for its employees: “Stop Complaining.”
But it gets even worse. Workers admit that their bosses routinely steal from them as well.