McDonald's & Economics Week 6
Robert Cohn
Regent University
Government spending has had a great impact on Mcdonald's on an international impact. It has affected revenue, profit, employment, and interest rates on individually owned and international Mcdonald's locations. If government spending from the federal reserve increases, so does the sales of products. Due to the increase in sales, this is a positive outcome of the federal reserve spending money. The spending can also affect Mcdonald's in more positive ways if they wish. If they focused on Mcdonald's as a company and helping them they could, “The government can involve all the spending on the macroeconomy by spending on education and proving training to the labor class to improve their productivity and performance (M.mcdonalds.co.uk, 2017). If the government takes initiatives they can train and educate the employees of McDonald’s for their betterment and improved work performance.”
By the government spending this money in certain ways, they benefit as well. The government spends money in the economy, that gets past from business to business, hand to hand, and ultimately helps control issues like inflation.
Sources:
https://circlebizz.com/economics/government-spending-impact-on-business/
Hey Robert,
Such interesting thoughts. Google tells me that Mcdonalds produces over 23 billion dollars annually for the economy. That is nothing to wink at!
However, I am not sure if Mcdonalds net effect on the economy is positive. When you think of the cost of Medicare, hospitalizations, and debatably underpaid work - Mcdonalds (and other fast food companies like them) might be hurting the American people more than helping. The founder once quipped that they were in the "real estate business" and not burgers - when you multiply the number of locations they have around the globe, you realize they are also leaving a pretty sizable carbon footprint. At least, this is what some critics would say. I wonder how you feel?