Bidenomics: $20 per hour for fast food workers in CA has caused a rise in prices, reduced work hours, and closed businesses. How can anyone in their right mind think this is working??

FrumCA

$20 per hour for fast food workers in CA has caused a rise in prices, reduced work hours, and closed businesses. How can anyone in their right mind think this is working??

https://www.msn.com/en-us/money/companies/biden-official-says-whether-20-ca-minimum-wage-will-hurt-business/ss-BB1ltgFD?ocid=msedgdhp&pc=U531&cvid=2c9e7df094104036a4dbe4560331e26b&ei=14#image=16

Triple G

FrumCA wrote:

$20 per hour for fast food workers in CA has caused a rise in prices, reduced work hours, and closed businesses. How can anyone in their right mind think this is working??

https://www.msn.com/en-us/money/companies/biden-official-says-whether-20-ca-minimum-wage-will-hurt-business/ss-BB1ltgFD?ocid=msedgdhp&pc=U531&cvid=2c9e7df094104036a4dbe4560331e26b&ei=14#image=16

The wage gap is finally been inverted -- thanks to Bidenomics, employees are getting a better share of the company profits. It may not yet be a fair wage compared to the profits, but a step in the right direction and to make up for the prior losses. McDonald's built the anticipated increase into prices 6 months ago and are doing it again. When McDonald's loses customers, they may course correct. Blame the greedy ones, not the workers and minimum wage efforts.

https://www.statista.com/statistics/1351276/wage-growth-vs-inflation-us/

https://clockify.me/productivity-pay-gap

https://www.epi.org/productivity-pay-gap/

How else is that gap going to be made up when employers have been shown to use trump tax breaks for stock buy backs and dividends to shareholders and not to employees and they haven't seen fit to share their record profits in increased wages? It wasn't until Union activities and minimum wage laws came into play for employers to finally understand that they couldn't get workers was because of pay. It's all there in the Biden presidential plan that he is accomplishing.

National Park

I bet you wouldn't work for $20/hour, let alone what they were paid before the wage increase...

FrumCA

Triple G wrote:

The wage gap is finally been inverted -- thanks to... (show quote)

I'm sure the owner's and stockholders of the companies that have had to close their doors agree with you wholeheartedly. Along with those who's hours were cut or those laid off.

Triple G

FrumCA wrote:

I'm sure the owner's and stockholders of the companies that have had to close their doors agree with you wholeheartedly. Along with those who's hours were cut or those laid off.

Do you have a list to share?

Triple G

You might find this study interesting. Survival of the fittest?

https://www.washingtonpost.com/news/wonk/wp/2017/04/24/minimum-wage-hikes-do-close-restaurants-just-not-the-ones-you-care-about/

FrumCA

Triple G wrote:

Do you have a list to share?

It's current news. Try Googling the question. Also in the source I provided.

Triple G

FrumCA wrote:

It's current news. Try Googling the question. Also in the source I provided.

https://www.forbes.com/sites/adigaskell/2023/05/20/does-raising-the-minimum-wage-result-in-job-losses-in-small-firms/?sh=181110937e1e

gorgehiker Loc: Lexington, Ky

FrumCA wrote:

I'm sure the owner's and stockholders of the companies that have had to close their doors agree with you wholeheartedly. Along with those who's hours were cut or those laid off.

How about the owners who are making record profits?

Economic Policy Institute:

Since the trough of the COVID-19 recession in the second quarter of 2020, overall prices in the NFC sector have risen at an annualized rate of 6.1%—a pronounced acceleration over the 1.8% price growth that characterized the pre-pandemic business cycle of 2007–2019. Strikingly, over half of this increase (53.9%) can be attributed to fatter profit margins, with labor costs contributing less than 8% of this increase. This is not normal.

FrumCA

gorgehiker wrote:

How about the owners who are making record profits... (show quote)

Yeah. How about that? Care to relate it to the subject of my post or will you stick to your deflection?

Triple G

FrumCA wrote:

Yeah. How about that? Care to relate it to the subject of my post or will you stick to your deflection?

History is pro-minimum wage setting.

https://news.berkeley.edu/2023/03/14/even-in-small-businesses-minimum-wage-hikes-dont-cause-job-losses-study-finds

FrumCA

Triple G wrote:

History is pro-minimum wage setting.

https://news.berkeley.edu/2023/03/14/even-in-small-businesses-minimum-wage-hikes-dont-cause-job-losses-study-finds

The info I posted reflects a change in this dynamic. Costs ARE being passed on the customers, yet jobs are being lost, hours are being reduced, and businesses are closing. With the $20 minimum wage in effect, California is testing the boundaries of theories expressed in this study, and it looks like things are going south. I may be time to dust off the study and take another look.

Triple G

FrumCA wrote:

The info I posted reflects a change in this dynamic. Costs ARE being passed on the customers, yet jobs are being lost, hours are being reduced, and businesses are closing. With the $20 minimum wage in effect, California is testing the boundaries of theories expressed in this study, and it looks like things are going south. I may be time to dust off the study and take another look.

It needs time to filter out the companies who were going belly up anyway.

TN minimum wage is $7.25 and hasn't been changed in years (and not likely to in a red state). Employers are still screaming they can't find workers - why do you think that is true? If you believe that markets and employers will self-correct, the the stats say otherwise. Whether CA or TN is getting it correct will be a constant debate until there is some course correction. Of note, that companies moving into the area are offering $19/hr and up. If that's the going rate, then McDonalds and other companies are going to need to get closer to it regardless of whether minimum wage increases mandate them or not.

Starting pay in CA and TN are only a $1 apart - the difference in cost of living is significantly more than that; CA has to raise it's rates to keep workers from moving to better wage/price ratio states. Are you against all minimum wage laws?

https://www.glassdoor.com/Hourly-Pay/Smith-and-Wesson-Hourly-Pay-E13378.htm
https://www.epi.org/publication/charting-wage-stagnation/
https://www.ziprecruiter.com/Salaries/Entry-Level-Salary--in-Tennessee
https://www.ziprecruiter.com/Salaries/Entry-Level-Salary--in-California

FrumCA

Triple G wrote:

It needs time to filter out the companies who were... (show quote)

Conceptually, I'm not against minimum wage laws. Unfortunately, many of them seem to be generated simply to satisfy the "living wage" banter. What IS a living wage? That depends on who you ask. Someone making $20 an hour who works full time in Burger King would make something like $42,000 per year before taxes. That's above the FPL for a single person. But is that enough in a city like NYC? Probably not. So, the question keeps getting asked. I read somewhere where CA Senator Barbara Lee (who in the interests of fully disclosure I consider as being someone who doesn't have all her oars in the water) suggested the minimum wage should be six figures. That, of course, is ridiculous. Increases in the minimum wage have unintended consequences and the fast-food workers in CA and probably other states are seeing the results.

Blurryeyed Loc: NC Mountains.

FrumCA wrote:

$20 per hour for fast food workers in CA has caused a rise in prices, reduced work hours, and closed businesses. How can anyone in their right mind think this is working??

https://www.msn.com/en-us/money/companies/biden-official-says-whether-20-ca-minimum-wage-will-hurt-business/ss-BB1ltgFD?ocid=msedgdhp&pc=U531&cvid=2c9e7df094104036a4dbe4560331e26b&ei=14#image=16

Not to worry, the government will take care of them.