California’s $20 minimum wage hike leads to job losses, higher prices.

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The ripple effects of California’s $20 minimum wage hike are becoming increasingly evident, with fast food restaurants across the state grappling with job cuts and price increases, further burdening businesses, workers, and consumers alike.

  • California’s minimum wage increase to $20/hour has led to job losses, reduced working hours, restaurant closures, and higher prices.
  • Fast food restaurants in the state have raised prices, with Wendy’s increasing prices by roughly 8%, Chipotle by 7.5%, Taco Bell by 3%, Burger King by 2%, and Starbucks by about 7%.
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Source: https://legalinsurrection.com/2024/04/california-fast-food-prices-soar-as-minimum-wage-hike-takes-toll-on-businesses-workers-and-customers/

Potential Implications:

  • The minimum wage hike intended to benefit workers has resulted in unintended consequences, including job cuts and increased prices, affecting both businesses and consumers.
  • Rising prices may exacerbate inflation concerns and impact the purchasing power of California’s residents, particularly the middle class.
  • Fast food chains’ implementation of self-serve kiosks and other cost-saving measures highlights the challenges faced by businesses in adapting to higher labor costs.
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