New study reveals crippling impact of California's minimum wage hike

[Hentenza]

California's dramatic fast food wage hike may have backfired, according to a new economic study – wiping out an estimated 18,000 jobs across the state in just one year.

The research, published this month by the National Bureau of Economic Research (NBER), analyzed the impact of Assembly Bill 1228, which mandated a $20 hourly minimum wage for fast food workers at large chains starting April 1, 2024.

According to the economists behind the study, fast food employment in California dropped by 3.2 percent, while jobs in the same sector grew slightly across the rest of the U.S.

New study reveals crippling impact of California's minimum wage hike

California's fast food wage law was meant to boost pay - but a new study says it wiped out 18,000 jobs in under a year, sparking a fierce political backlash.

www.dailymail.co.uk

Not surprised.

 

[Nithavela]

California's dramatic fast food wage hike may have backfired, according to a new economic study – wiping out an estimated 18,000 jobs across the state in just one year.

The research, published this month by the National Bureau of Economic Research (NBER), analyzed the impact of Assembly Bill 1228, which mandated a $20 hourly minimum wage for fast food workers at large chains starting April 1, 2024.

According to the economists behind the study, fast food employment in California dropped by 3.2 percent, while jobs in the same sector grew slightly across the rest of the U.S.

New study reveals crippling impact of California's minimum wage hike

California's fast food wage law was meant to boost pay - but a new study says it wiped out 18,000 jobs in under a year, sparking a fierce political backlash.

www.dailymail.co.uk

Not surprised.

So, a few less people work there, but those can actually live from their work?

Sounds okay to me.

 

[BCP1928]

It looks like the "large chain fast food industry" needs a new business model.

 

[GoldenBoy89]

The argument against the minimum wage hike was always that these were just temporary jobs meant for teenagers and young college students. Not a career someone is expected to make a living off of.

 

[Hentenza]

It looks like the "large chain fast food industry" needs a new business model.

More expensive food and less staff?

 

[BCP1928]

More expensive food and less staff?

Less money flowing to corporate headquarters?

 

[Hentenza]

Less money flowing to corporate headquarters?

I doubt it. Maybe less money going to the franchisee but not to corporate.

 

[BCP1928]

I doubt it. Maybe less money going to the franchisee but not to corporate.

Which makes me wonder why a burger stand even needs a corporate headquarters. Speaking as a burger eater, it wouldn't hurt my feelings one bit if the franchise model became obsolete.

 

[Hentenza]

So, a few less people work there, but those can actually live from their work?

Sounds okay to me.

Unless you are one of the ones without a job.

 

[Hentenza]

Which makes me wonder why a burger stand even needs a corporate headquarters. Speaking as a burger eater, it wouldn't hurt my feelings one bit if the franchise model became obsolete.

In that we agree.

 

[BCP1928]

Unless you are one of the ones without a job.

It would be good to know how many of those workers became permanently unemployed, because that would be the only cogent argument you could make.

 

[Hentenza]

It would be good to know how many of those workers became permanently unemployed, because that would be the only cogent argument you could make.

Probably not too many but that’s really not the argument. At least not as I read the article. I wonder how many of those jobs are permanently lost not to ever be filled.

 

[BCP1928]

Probably not too many but that’s really not the argument. At least not as I read the article. I wonder how many of those jobs are permanently lost not to ever be filled.

If the position is lost but the employee can find other work then there really is no problem.

 

[Hentenza]

If the position is lost but the employee can find other work then there really is no problem.

Unless they can’t get work in a large fast food chain and they have to settle for a small fast food chain where their pay is much lower.

 

[Nithavela]

Unless you are one of the ones without a job.

Yes, boohoo. Instead of not being able to live off their work, now they have to live off the dole and have some free time.

 

[Hentenza]

Yes, boohoo. Instead of not being able to live off their work, now they have to live off the dole and have some free time.

Yep. A lot of progressives believe in the lazy.

 

[BCP1928]

Unless they can’t get work in a large fast food chain and they have to settle for a small fast food chain where their pay is much lower.

Is that what is actually happening?

 

[Hentenza]

Is that what is actually happening?

Could be. There are now 18000 less opportunities so…..

 

[BCP1928]

Could be. There are now 18000 less opportunities so…..

18,000 less opportunities in national fast food chains. You are beginning to sound like a neoliberal, and I know you don't want that.

 

[Hentenza]

18,000 less opportunities in national fast food chains. You are beginning to sound like a neoliberal, and I know you don't want that.

But you make it sound that working for the national fast food chain is a bad thing. They obviously have a much more marketable burger flipping skills than the small ones.