Mr. Craig,
You liberals are so silly. Labor represents the greatest risk in a company's business plan. Nothing else in your balance sheet can be modified. Operating costs, materials, insurance, overhead, rents, vender supplies, etc., are all fixed. If you raise labor costs, you can't take it from some other line item. The only thing that you can do is either raise prices hoping to keep a market share, or decrease margins. If you decrease margins, your return on investment would make it unwise to remain in business.
Your pie in the sky scenario says that if you put more money in the hands of the workers, they could more afford to buy your product. The flaw in this is that McDonalds already offers a more affordable product, so the increase in salery, if anything, would provide only a marginal, if not negligable increase in sales.
Sorry, dude, but it's a basic fact of life, you cannot increase sales by increasing costs. You can only increase sales by decreasing prices, all other factors being the same.