California Governor Gavin Newsom has signed a bill into law that raises the minimum wage for fast food workers in the state to $20 per hour. This move is seen as a victory for those in the service industry. They say their wages have not kept up with the cost of living and inflation. Many others say that people who work 40 hours per week should be able to afford to live.
Much of what is said in favor of raising minimum wages doesn’t have a basis in reality. Artificially raising wages will simply worsen the problem of inflation although it is supposed to alleviate it.
There are images of McDonald’s “McChicken” sandwiches costing over $4 for the sandwich by itself, no combo. This price varies across the country and it is usually lower. California, of course, is a place where the cost will be higher. The reason is that higher prices of food, drink, services, and more are the inevitable result of artificial/government-regulated increases in the cost of labor.
Then, there is the age-old practice of simply cutting hours while demanding higher productivity to cut down on the cost of labor. This will ensure that higher-qualified people get the job flipping burgers for $20 per hour instead of the 16-year-old high school student or the adult person fighting homelessness.
SOURCES:
California raises minimum wage for fast food workers to $20 | AP News
CA boosts fast food minimum wage to $20 an hour—is it enough? – CalMatters
Fast-food workers in California to earn $20 an hour in 2024 – ABC News
California minimum wage for fast food workers raised to $20 an hour | Reuters
California Gov. Newsom signs fast-food worker $20 minimum wage bill into law | Fox Business
‘An Abomination’: Today Marks 14 Years Since the Last Federal Minimum Wage Increase
