From the ISO’s kick-off forum “Why You Should Join the Socialists & Change the World”.
"Starbucks baristas make about $9/hr. If they make 3 drinks for $5 each, they pay for their hour of their labor & supplies. At 5 drinks they pay for themselves & a coworker. At 10 the whole store for an hour. At peak hours they make 2-300 drinks & see none of the profits. Every drink after 3 is theft."
Firstly, does each separate employee at Starbucks really make one drink every 18 seconds (60*60/200 = 18) for the entire time they’re working? That sounds like a gross exaggeration.
Secondly (this is so obvious it’s embarrassing to point it out) to make a coffee involves an enormous production process. The milk, the sugar, the coffee beans, the machines, the building, the land, the machines that made the machines, the transportation costs, the plastic for the cup, the machines that made the buildings for the chemicals that produced the plastic, and so on—all of these costs come together to form the price. Are you really so dense that you think the person who assembles the final pieces together is wholly entitled to the value of the coffee?
Thirdly, have you actually bothered to look at the real profit margins? Starbucks makes a margin of about 12%. Not 11000%, 12%. And this 12% is a quasi-rent (it doesn’t include the sunk costs), over the long-run the “true” profit is only the rate of interest which is normally around 3%. It’s unreal that someone could be this stupid.