McDonald’s Chief Executive: America Must Curb Spending and Cut Taxes

Jim Skinner, the chief executive of McDonald’s, warns that America must cut taxes and reduce government spending in order to kick-start an economic recovery.

America must cut taxes and reduce Government spending in order to kick-start a recovery, McDonald's chief executive Jim Skinner has told Sky News. Photo: Ronald McDonald/Flickr

In a rare television interview, he told Sky News: “The question is, how can we get the ox out of the ditch?

“In order to create jobs in America, you’re going to have to do something with the tax… You have to cut taxes… particularly in the business community.

“We pay some of the highest [corporate] taxes around the world… There needs to be some levelling.”

When asked about federal borrowing, he said: “It’s not a good story… the government has to spend less. We have to grow the economy, grow GDP… and you have to be able to do it in an organic way and not through borrowings and increasing debt.”

McDonald's army of blue-collar customers need more clarity on core issues, such as healthcare. Photo: Felicia/Flickr

McDonald’s army of blue-collar customers need more clarity on core issues, such as healthcare, he said. “Until all of that is all defined and certain… we’re going to continue to have a fragile environment for consumer confidence.”

Skinner’s intervention will be seized upon by President Obama’s opponents amid a fierce debate in Washington over the country’s deteriorating finances and high unemployment. As Democrats and Republicans fire up their 2012 election campaigns, the focus is on the “9pc nightmare”, with both the US budget deficit and jobless total at that level.

Skinner’s company is one of only a few big US employers still hiring in significant numbers, with more than 500,000 staff on its domestic payroll.

McDonald’s has just delivered 100 consecutive months of same-store sales growth. It is ranked number one in the Dow Jones Industrial Average for total shareholder return over the past five years, with the share price rising from $12 in 2003 to $93 today.

Skinner joined the company as a trainee store manager 40 years ago and was made chief executive in 2004. He was named America’s CEO of the Year in 2009.

Personal responsibility is a theme to which he warms, whether it is consumers and their diets or shoppers and their debts – a poke in the eye for those who blame McDonald’s for making them fat and the banks for dishing out loans.

His approach has been uncomplicated: get rid of peripheral businesses, such as Pret A Manger, which distracted management from core operations; concentrate instead on improving the food, decor and service in existing stores rather than opening new ones.

The result is that McDonald’s has just delivered 100 consecutive months of same-store sales growth.

Jeff Randall’s full interview with Jim Skinner will be broadcast tonight on Sky News at 7pm. [via Sky News, The Telegraph and Ghana Politics]

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