The Atlantic recently ran an article examining the collaboration between McDonald’s and Visa to help their low-pay workforce learn how to budget efficiently.
The financial planning site assumes that the average McDonald’s employee works 40-hour weeks and still maintains a second job that pays nearly as much. The Atlantic points out that average rent 2012 was $1,048, while the McDonald’s plan accounts for only $600. McDonald’s themselves charges employees $12.58 per week for its basic health plan ($14 per month for employees with less than a year at McDonald’s) making their budgeted $20 per month for healthcare highly unrealistic.
Furthermore, this budget accounts for the income from two jobs, but only counts the expenses of a single person. These expenses increase if a worker has children. Of course we have programs like food stamps and Medicaid to help these workers, but we must realize that while companies like McDonald’s are raking in profits, it’s the American taxpayer that ends up subsidizing the bottom line.
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