In anticipation of California's new $20 minimum wage for fast-food workers, set to take effect on April 1st, several fast-food chains, including Pizza Hut, have begun laying off workers and raising prices. This wage hike, applicable to businesses with 60 or more locations nationwide, aims to aid workers amidst rising living costs.
However, the move has sparked controversy and debate over its potential impacts. Critics argue that while the wage increase might seem beneficial on paper, it could lead to job losses, higher consumer prices, and a shift towards third-party delivery services, as companies strive to manage increased labor costs.
This development reflects broader concerns about the economic sustainability of significant wage increases and their real benefits to workers in high-cost living areas like California.
I don't eat fast food anymore so I don't really have an opinion other than history has shown that artificial wage increases of any magnitude never work. Some will benefit in the short term but there will be long term job loss and more will suffer.
Think about it, you are raising the largest expense most businesses have (labor) by 25%. That could wipe a lot of businesses profit margin out. The what? Price increases? Then what? Less business. Then what? Closed sign in the window. But what else can you expect from Commiefornia
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