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?