I found this on the abc news website?

Question

This is a quote from a bankruptcy judge in New York. Any comments?

When McDonald's started to allow people to use credit cards instead of paying cash, the average sale went from $4.75 to $7. Need I say more?"

His point was that it wasn't painful to spend the extra money because it didn't really hit the McDonald's customers in their wallet right away.

The point is that you spend more when you use plastic. Mcdonalds or anywhere.

the article was about all the bankruptcys and debt. I guess you really need to read the whole thing. Sorry. I assume the judge used Mcdonalds be cause they did their own study.

Answer 1

Haha. So it is now McDonalds fault people are bankrupt. American's are great but come on. (this is a joke) Control your spending. It is no one elses fault that some people spent too much money. Each person should beable to control themselves wether using credit or cash.

Just wondering when did they not allow credit card usage? like 15, 20 years ago? Is the 7.00 sale from 15 or 20 years later? 20 years ago I was paying for my gas with cash and it was $.50 a gallon, now I pay with a credit card and it is $3.25 a gallon. Obviously that is not because of the credit card but because of inflation.

I think he just was abusing the stat by not giving the details regarding the study, until then this means nothing to me.

Answer 2

I do not see how this is any different from any other business accepting credit cards. For example, restaurants accept credit cards all the time, so what is the problem if McDonalds does it too? It seems the only difference is the price of the meal being charged.

I get the point about it being easier to spend money you don't have, and that business that allow credit card purchases make more sales, however I don't understand the sense of outrage over Mcdonalds, when everyplace else has been doing it for years.

It seems to imply to me that either people that eat in fine restaurants are wealthier, so therefore smarter, and more able to 'comprehend' the concept of credit and should have the option to use credit, while poorer people who eat at McDonalds shouldn't because they don't understand credit and will misuse it? Or that credit card purchases give the poor who eat at McDonalds the ability to buy more even unhealthy bad bad McDonalds burgers?

Or is the problem that McDonalds can sell more by allowing credit cards -- just like every other company does??? The fact that people prefer to buy now pay later should not be a surprise or revelation to anyone, and hardly rates a news article on the subject.

Answer 3

His point has nothing to do with McDonalds. He just used them as an example because it's a frequently visited, well known place.

His point was that people spend more when using credit cards, because they can pay for it later.

Was I the only one that read the question???

Answer 4

I think it is easier to spend money with a credit crd, but that is peoples fault how much they spend.

Chane you may have read the question but are you going to answer it? Or just bash others?