Originally Posted by kane

The subsidizing is very simple. McDonald's actually has things in their employee handbook that encourage employees to sign up for government programs like food stamps and help with childcare. They also have people that work for them that will help you out with this process.

So, let's say Jane the average young woman gets herself knocked up and has a kid. She then gets a job at McDonald's. She can't raise that kid on that wage so she signs up for various government assistance programs. She is likely going to qualify for most of these assistance programs. So now she is getting food stamps, help paying for daycare, reduced rent and potentially other things like free health insurance. With the benefits she is likely going to be able to live a lifestyle of someone making $12-$15 per hour or more as opposed to $7.25 per hour.

If she were to take a different job where she could jump up to say $9 an hour she very well may no longer qualify for all these assistance programs so she doesn't she stays at McDonald's which benefits from having an employee that has been there a while, knows how things work and is (hopefully) reliable which is better for them than having to go through the cost of hiring and training new people.

The definition of subsidize is: to aid or promote (as a private enterprise) with public money <subsidize soybean farmers> <subsidize public transportation>. This is exactly what is going on here. If there were no government assistance programs people would likely strike, unionize or at the very least demand more money and I think companies that generally pay minimum wage would be forced to raise their wages, but because these programs exists companies can pay less if there are complaints they can show their employees how to suckle from the government teat.