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California’s $20-Hr. Fast-Food Minimum Wage Is Already An Economic Disaster
Posted on 5/2/24 at 9:05 am
Posted on 5/2/24 at 9:05 am
Barely A Month Old, California’s $20-Hr. Fast-Food Minimum Wage Is Already An Economic Disaster
California Democrats who pushed through the state’s punitive new minimum wage must be feeling mighty proud about now. Not only are fast-food joints closing or replacing low-end employees with overseas workers and robots, now the law is costing the very people it was supposed to help while decimating consumers’ wallets. Well done!
The $20-an-hour wage floor foisted on California’s fast-food restaurants, dubbed with the innocent-sounding moniker Assembly Bill 257, was signed into law last fall. It didn’t take long to become a disaster.
Hoover Institution senior fellow and economist Lee Ohanian showed just how quickly bad policies can wreck an economy. And the damage was done even before the law officially went into effect a month ago today.
“Between last fall and January,” Ohanian wrote, “California fast-food restaurants cut about 9,500 jobs, representing a 1.3% change from September 2023.” By comparison, overall employment in California during that period fell just 0.2%.
Those who are losing their jobs in this new higher-wage environment are those most easily replaced, with the lowest productivity — which usually means minority youths with minimal education and little or no work skills. In short, the most vulnerable among us.
“This includes losses at Pizza Hut and Round Table Pizza which are in the process of firing nearly 1,300 delivery drivers. El Pollo Loco and Jack in the Box announced that they will speed up the use of robotics, including robots that make salsa and cook fried foods,” Ohanian added.
Because of escalating costs, many restaurants are also adding “ordering kiosks,” basically firing workers and replacing them with user-friendly computer terminals.
LINK
California Democrats who pushed through the state’s punitive new minimum wage must be feeling mighty proud about now. Not only are fast-food joints closing or replacing low-end employees with overseas workers and robots, now the law is costing the very people it was supposed to help while decimating consumers’ wallets. Well done!
The $20-an-hour wage floor foisted on California’s fast-food restaurants, dubbed with the innocent-sounding moniker Assembly Bill 257, was signed into law last fall. It didn’t take long to become a disaster.
Hoover Institution senior fellow and economist Lee Ohanian showed just how quickly bad policies can wreck an economy. And the damage was done even before the law officially went into effect a month ago today.
“Between last fall and January,” Ohanian wrote, “California fast-food restaurants cut about 9,500 jobs, representing a 1.3% change from September 2023.” By comparison, overall employment in California during that period fell just 0.2%.
Those who are losing their jobs in this new higher-wage environment are those most easily replaced, with the lowest productivity — which usually means minority youths with minimal education and little or no work skills. In short, the most vulnerable among us.
“This includes losses at Pizza Hut and Round Table Pizza which are in the process of firing nearly 1,300 delivery drivers. El Pollo Loco and Jack in the Box announced that they will speed up the use of robotics, including robots that make salsa and cook fried foods,” Ohanian added.
Because of escalating costs, many restaurants are also adding “ordering kiosks,” basically firing workers and replacing them with user-friendly computer terminals.
LINK
Posted on 5/2/24 at 9:06 am to djmed
Kinda seems like this was planned to bring in the robots
Posted on 5/2/24 at 9:08 am to djmed
Working as intended. The idea is to force the poor into total dependency.
Posted on 5/2/24 at 9:18 am to djmed
Who could have seen this coming?
Posted on 5/2/24 at 9:21 am to djmed
The perversion of the MINIMUM wage is economic jibberish. It makes NO sense.
The Min wage was never meant to be a living wage. It was meant to give an affordable floor to business while giving some sort of wage regulation for the inexperienced , low/un skilled or beginning worker - oftentimes young workers.
What California is going is anti business.
Interestingly, there are loopholes for Gavin Newsome supporters like Panera bread.
Why is that?
The Min wage was never meant to be a living wage. It was meant to give an affordable floor to business while giving some sort of wage regulation for the inexperienced , low/un skilled or beginning worker - oftentimes young workers.
What California is going is anti business.
Interestingly, there are loopholes for Gavin Newsome supporters like Panera bread.
Why is that?
Posted on 5/2/24 at 9:31 am to djmed
Just sounds like an opportunity to make the minimum wage 30$
Posted on 5/2/24 at 9:55 am to djmed
quote:
California’s $20-Hr. Fast-Food Minimum Wage Is Already An Economic Disaster
Posted on 5/2/24 at 9:59 am to djmed
well looky there
Posted on 5/3/24 at 9:02 am to djmed
A fast food joint closed their doors after the min wage hike. When the newly unemployed workers were interviewed, they all said they would've preferred to stay at $17/hr and have a job.
Posted on 5/3/24 at 9:55 am to djmed
I was told that raising minimum wage would have no impact on jobs.
By people with no fricking clue how the world works.
So if $10 dollars an hour isn’t good enough because it’s not a living wage how does $0 work out?
By people with no fricking clue how the world works.
So if $10 dollars an hour isn’t good enough because it’s not a living wage how does $0 work out?
Posted on 5/3/24 at 11:10 am to djmed
quote:With the dawn of AI, and cheap technology... this is stupidest time in all of man's history to enact a floor on the price of labor. Maybe CA is doing this for Silicon Valley?
Those who are losing their jobs in this new higher-wage environment are those most easily replaced, with the lowest productivity
Posted on 5/3/24 at 11:37 am to djmed
quote:
California’s $20-Hr. Fast-Food Minimum Wage Is Already An Economic Disaster
Bro I believe you. Gonna need more than issuesinsights.com in on it though.
quote:
“This includes losses at Pizza Hut and Round Table Pizza which are in the process of firing nearly 1,300 delivery drivers.
They're gonna FIRE THEM? I think it would be more than likely a lay-off.
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