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

[ThatRobGuy]

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

Are you referring to the franchising model?

 

[ThatRobGuy]

I'd like to know who's was in charge of evaluating the business landscape and the "franchise-based" nature of that industry before putting this into effect.

Anyone who understands how that model works knows that a $20 minimum wage mandate for McDonald's is very different than a $20 minimum wage mandate for a Target or Walmart.

 

[Ophiolite]

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.

Maybe not. They certainly have a much larger marketing budget. Ah! Maybe that's where a lot of the money goes. Who would have thought it?

 

[Hentenza]

Maybe not. They certainly have a much larger marketing budget. Ah! Maybe that's where a lot of the money goes. Who would have thought it?

You think the difference between a large fast food chain and a small fast food chain is their marketing budget?

 

[ozso]

Fast food was an entry level job for high school students still living at home.

The appeal to customers was cheap junk food served fast.

Now it's wait a long time for expensive junk food in smaller portions.

Eventually fast food is going to go the way of Blockbuster and Circuit City.

 

[BCP1928]

Are you referring to the franchising model?

Among other things, but yes. Perhaps the franchising model doesn't work any more. Fast food franchising developed during my lifetime, so I don't see it as a tradition that needs to be preserved. I didn't have any trouble getting hamburgers before and if it fails I don't expect to have any troubles getting hamburgers afterwords. It's not a free market model in any case, so maybe good riddance.

 

[jacks]

There's a lot of competing interests.

The large franchise wants to maximize profits for it's shareholders.
The small business wants to be able to survive.
The consumer wants cheap/fast food.
The employee wants a living wage. (This might be the most controversial since flipping burgers was seen as a summer or low skilled temporary job. However, if we outsource our manufacturing, where are low skilled people supposed to work. Is flipping burgers any easier than putting on left front fenders in a manufacturing job? We need jobs for people who don't have the time, aptitude or skills to do much else. This doesn't make them any less worthy than an educated, skilled worker.)

What is an equable solution? Hard to say. What will happen is more predicable. Technology will replace many and those who may not be capable of much else, will be left to fend for themselves.

 

[rjs330]

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.

It still is. Do you believe that those employees at $20 an hour are all full timers?

Thats 18,000 fewer jobs to be had for t he temporary workers, the teens and college students to have.

 

[rjs330]

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.

This shows a problematic mindset. Pay people for being lazy and not working.

 

[ozso]

It's a system that worked well and did well for decades until democrats tried to fix it.

 

[ozso]

This shows a problematic mindset. Pay people for being lazy and not working.

That's what liberalism has taught the new generation. Many people in their 20s have no work ethic.

 

[rjs330]

It's a system that worked well and did well for decades until democrats tried to fix it.

The good idea fairy struck again. Democrats like to tey and run something only to make it worse and then someone has to fix the problem they created.

 

[BCP1928]

It still is. Do you believe that those employees at $20 an hour are all full timers?

Thats 18,000 fewer jobs to be had for t he temporary workers, the teens and college students to have.

I don't believe anything about until I see some data. Got any?

 

[Nithavela]

This shows a problematic mindset. Pay people for being lazy and not working.

As opposed to the non-problematic mindset of not paying them enough to live when working.

 

[ozso]

As opposed to the non-problematic mindset of not paying them enough to live when working.

The idea is to get an education and learn a trade to get a skilled job that pays enough to live on.

 

[Ophiolite]

You think the difference between a large fast food chain and a small fast food chain is their marketing budget?

As such an active supporter, apparently, of laissez faire capitalism, I am amazed that you did not know that. Or were you just conveniently overlooking it?

This shows a problematic mindset. Pay people for being lazy and not working

As opposed to the narcissitic mindset that chooses to blame the failure of individuals, exclusively, upon the laziness of those individuals rather than upon the socio-economic model that places them in an untenable position.

 

[Nithavela]

The idea is to get an education and learn a trade to get a skilled job that pays enough to live on.

Too bad that is not an option for those who were let go because of the wage hike.

 

[ozso]

Too bad that is not an option for those who were let go because of the wage hike.

It's an option for anyone who doesn't have a disability that precludes it.

 

[Nithavela]

It's an option for anyone who doesn't have a disability that precludes it.

And yet the presumption appears to be that anyone that gets fired from mcdonalds will forevermore be a liability to society.

 

[Oompa Loompa]

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.

The study reveals what conservatives have been saying for years.