Fast Food Workers and Social Welfare Programs

The Wall Street Journal looks at the issue (h/t Ritholtz):

One point that isn't disputed: $7 billion isn't much, in the context of the U.S. fast-food industry and of government benefits. It is about one-fifth or one-quarter as much as fast-food restaurants pay their front-line workers in wages and benefits. And it is less than 2% of the total benefits paid out by the four programs studied by the researchers.

Why, then, focus on fast food? "$7 billion is $7 billion. You have to start somewhere," Dr. Allegretto said, adding that the proportion of fast-food workers who receive benefits from those programs—52%—is larger than in other major industry categories she and her colleagues studied.

Dr. Allegretto said the figure is an underestimate, for several reasons. First, there is no ready-made data set of fast-food workers, so researchers used three different sources and several assumptions. "We always erred on the side of being conservative," she said. The researchers also omitted many other benefits programs.

Some economists praised the research, which hasn't yet been published in a peer-reviewed journal. "They produced the best estimates available using sound methods and data," said Aaron J. Sojourner, a labor economist at the Carlson School of Management at the University of Minnesota.

I find it interesting that the two industries with the highest percentage of employees who had family members on social welfare programs were both food production or provision industries.  So does that have something to do with the government subsidizing cheap food?  I don't see how, when profits for the companies have increased over time.  I think this does have to do with the half-assed employer-based health care system we have, and the fact that the restaurant industry has long used part-time help that they stiffed on health insurance.  I would be curious to know what would happen if we got an increased minimum wage combined with a tax on large businesses that don't provide health insurance based on their total number of part-time and full-time workers.  I would expect they might cut part-time employees, but dramatically increase full-time workers.  In the end, an employer-based system doesn't work if an increasing number of employers don't provide insurance.  Since we are there, we need to work out a different system.