CALIFORNIA'S $20 MINIMUM WAGE--A DISASTER???

News Flash

Here's why businesses in the Golden State say the new $20 dollar an hour minimum wage for fast food workers isn't working.

Slipstream

Let's face it, long before California raised the minimum wage, big business has been looking for ways to replace employees with machines so those at the top can get their $30 million salary plus their $30 million bonus for shaving costs. The $20 minimum wage just gave them an excuse to raise prices — something to point at and say, "See it's not us, it's them."

TMac

While there may be many opinions on this subject, there is one thing that I'm certain of--and that is the salaries of the CEOs of these companies has not been reduced one dime.

Evangel

Interesting topic and thank you for posting. I just read that fast food chains were lowering their prices, lol. Maybe they're hoping to bring people back with the old-fashioned prices. I don't know, but businesses always know how to make a nice profit, either by cutting stores, letting people go, or raising prices. If the end result is fewer people going out to stuff themselves with garbage food, maybe people will end up benefitting the most...but who knows?

TMac

I rarely eat a fast food restaurants--almost never, really. And you're right, it has nothing to do with the prices and everything to do with how unhealthy the food is.

Well Street

78% of consumers regard fast food as a luxury? Yet another example of the bizarro world we're living in.

The critics' data points make the wage hike look like an abysmal failure but I'd be curious to learn what the advocates say. Would they present data that makes the increase look like the right move?

We can all agree those not impacted are the executives and their salaries.
It reminds me of when the oil companies were "forced" to raise gas prices when Russia invaded Ukraine due to global supply insecurity. Today, a barrel of crude is about $80, as it was before the invasion, but California's gas prices don't reflect that.

TMac

You make an excellent point! We definitely know CEO salaries have not taken a hit. But beyond that, statistics can be manipulated to validate any point of view. Amazing how two people can look at the same numbers and draw completely different conclusions depending on each's agenda or narrative.