'Federal Minimum Wage Is 2 Hashbrowns An Hour' — McDonald's Price Hikes Are Making People Feel Overcharged And Underpaid

A recent Reddit thread on the Work Reform subreddit went viral for its clever way of highlighting the struggle of minimum wage earners in today’s economy. The thread, titled “Minimum Wage Has Always Been Set Too Low, But Now It’s Laughable!”, compared the stagnant federal minimum wage of $7.25 to the shocking price of a McDonald’s hash brown: $3.49. 

The original post highlighted how the federal minimum wage of $7.25, stagnant since 2009, equates to two McDonald’s hashbrowns an hour at their current price of $3.49 each. When the minimum wage was set, a McDonald's hashbrown was just 75 cents, which is a 365.33% price hike. 

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The thread quickly became a platform for wider discourse on economic policies and corporate pricing strategies. One user posted, “Whenever I need to get fast food breakfasts, I always skip hash browns. That is soooooo overpriced for no reason. … Who is paying $3+ for a piece of potato?” This sentiment echoed the frustrations of many who feel overcharged and underpaid.

Users highlighted a nostalgia for more competitive pricing and better value in the past, with one user noting, “It’s even sadder if you remember the 1990s because that seems the last time that a bit of competition between companies had portions going up for a given price. And promo deals back then didn’t require any spyware app bullsh*t either.” Another added, “The reason is always the same, too; corporate greed.”

Amid these discussions, CNN’s February report on McDonald’s acknowledging its “affordability problem” was referenced, revealing a corporate admission that aligns with consumer sentiments. As McDonald's CEO Chris Kempczinski hinted at potential price cuts, the move signals a possible shift in how companies are responding to the growing pushback against continuous price hikes, particularly in sectors catering to lower-income consumers.

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Despite previous increases in menu prices — as much as 10% in 2023 — Kempczinski acknowledged the need to reevaluate pricing strategies to maintain customer loyalty, especially as grocery prices saw a modest rise of 1.3% in 2023 compared to the 5.2% surge in dining out costs.

While many states have minimum wage standards, a report from the National Conference of State Legislatures notes that five states — Alabama, Louisiana, Mississippi, South Carolina, and Tennessee — have not adopted a state minimum wage. Georgia and Wyoming have set a minimum wage below the federal minimum of $7.25 per hour. Consequently, the federal minimum wage serves as the default baseline in these states.

This situation directly impacts the purchasing power of many people, particularly those reliant on minimum wage incomes in states where the cost of living may outpace wage growth. The example of McDonald’s hash browns priced at $3.49 each illustrates the challenge: In states adhering to the federal minimum wage, an hour’s labor can barely cover a small breakfast menu item, pointing to broader issues of affordability and financial security.

Given these economic conditions, people navigating their financial futures — whether planning for retirement, saving for a home or aiming for financial stability — might find consulting a financial adviser beneficial. Financial advisers can offer tailored strategies to manage expenses, save effectively and invest wisely, taking into account each person’s unique financial situation and goals. 

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