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Home » Recent News » Taxpayers Subsidize Fast Food Industry


Taxpayers Subsidize Fast Food Industry

January 9, 2014

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According to a report from researchers at University of California, Berkeley, most fast food workers are paid so poorly that they are forced to enroll in public assistance programs, despite the industry making $200 billion in profits each year. “The taxpayer costs we discovered were staggering,” says the report’s co-author Ken Jacobs, chair of UC Berkeley’s Center for Labor Research and Education. Even those few who are full-time employees rely on public assistance as a rule, receiving benefits to the tune of $7 billion annually, twice the overall rate of the workforce. And that figure does not include the expenditures of state and local programs.
A separate report from the National Employment Law Project found that the 10 biggest fast food companies alone were responsible for 60% of the $7 billion in public costs, and earned $7.4 billion in profits last year. McDonald’s workers alone account for about $1.2 billion in public assistance.






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