Minimum Wage Increase Impact/Effect

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Imnotmoving said:
If a mom and pop can’t keep up with a living wage they shouldn’t be hiring. just do the work themselves and pay their family members a less than living wage to do the job.
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Well in theory this great. But the practical reality is that we can not have living wages and cheap things. You can only charge so much for certain products.

Everyone needs a return on their capital and if that return isn’t there they will shut down.

Right now the risk free rate on a 10year treasury is about 4.2%. Why would I run a business that yields less than that. Most mom and pop shops (restaurants, fast food, etc) can’t scale to generate very high returns.
 
When will democrats realize we live in a capitalistic society? Markets not the government dictate wages, house prices, and what I want to drive and eat. This is not central planning where a bureaucracy attempts to tell the people and the markets what we want….never works but they think it can🤦🏽‍♂️🤷🏽‍♂️😂😂😂🇺🇸
 
qwerty said:
Well in theory this great. But the practical reality is that we can not have living wages and cheap things. You can only charge so much for certain products.

Everyone needs a return on their capital and if that return isn’t there they will shut down.

Right now the risk free rate on a 10year treasury is about 4.2%. Why would I run a business that yields less than that. Most mom and pop shops (restaurants, fast food, etc) can’t scale to generate very high returns.
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Things may be too cheap if people can’t live.
 
But wage inflation (in this case self inflicted) drives real inflation and not only creates unemployment and a weaker jobs market but drives up the cost of living for all those recently unemployed…it’s a giant circle jerk with no happy ending🤦🏽‍♂️😢👎🏽🦄🌈
 
morekaos said:
But wage inflation (in this case self inflicted) drives real inflation and not only creates unemployment and a weaker jobs market but drives up the cost of living for all those recently unemployed…it’s a giant circle jerk with no happy ending🤦🏽‍♂️😢👎🏽🦄🌈
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What is the solution? A non political solution.
 
free markets…let supply and demand dictate the price…price of labor and price of end product and services. It will find a balance if we let it. Government intervention never helps when setting price
 
Again, I am fortunate enough to be able to afford to stay but many are not so fortunate…even those who can afford it are fleeing because of all these self inflicted wounds. In the end this is gong to turn into Elysium…😂😂😂👎🏽🦄🌈
 
morekaos said:
Again, I am fortunate enough to be able to afford to stay but many are not so fortunate…even those who can afford it are fleeing because of all these self inflicted wounds. In the end this is gong to turn into Elysium…😂😂😂👎🏽🦄🌈
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So you just like to point out things and do nothing about it. Got it.
 
Imnotmoving said:
So you just like to point out things and do nothing about it. Got it.
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Not at all. I am politically active and do what I can but someone needs to point these things out or the sheeple will simply accept it as they drag the rest of us off the cliff🤷🏽‍♂️😂👍🏽🇺🇸
 
Imnotmoving said:
Feel free to move if you hate it here so much. We need housing.
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By destroying so many jobs, these poor people can't afford housing now and they are the ones that might have to leave thanks to the misguided compassion of people that supported the minimum wage increase.
 
I am hopeful, that like an alcoholic …we have hit rock bottom and will now change direction and elect responsible politician who will bring back common sense and prosperity…This “experiment” was a total disaster..🤦🏽‍♂️😂😂👍🏽🇺🇸

California’s $20 Minimum Wage Experiment Crushes Carl’s Jr. as Crime and Costs Collide

California’s aggressive push for a $20 fast-food minimum wage was sold as a moral victory for workers, a bold stand against corporate greed that would lift families without consequence. Yet the reality unfolding at Carl’s Jr. locations across the state tells a different story—one of shuttered opportunities, fleeing staff, and franchise operators driven to bankruptcy. What began as political virtue-signaling has delivered economic pain that no amount of union rhetoric can disguise.

California’s leaders chose coercion over cooperation. The result is fewer restaurants, anxious workers, and struggling operators. True compassion requires policies that recognize human nature, economic limits, and the dignity of honest work—not mandates that erode the enterprises providing it.

Carl’s Jr.’s struggles should serve as a cautionary tale for every state tempted to follow California’s lead. Ignoring supply and demand does not elevate the working class. It burdens them with scarcity, fear, and fewer doors of opportunity. Until leaders acknowledge this, more iconic chains and hardworking Americans will pay the price.

California’s $20 Minimum Wage Experiment Crushes Carl’s Jr. as Crime and Costs Collide – Discern Money

 
In his NBER working paper, economist Arindrajit Dube examines the impact of California's AB 1228, which instituted a sector-wide $20/hour minimum wage for large fast-food chains. Key labor market findings from the study include: [1, 2]
  • Wage Increases: The policy boosted average fast-food wages in California by approximately 7%.
  • Modest Employment Impact: Overall employment effects were small, with own-wage employment elasticity estimates ranging from -0.04 to -0.19, which is comparable to or slightly below typical minimum-wage impacts seen in other state policies.
  • Reduced Turnover: The policy led to a significant drop in employee separation rates, pointing to a "quit-reduction channel" consistent with monopsonistic labor market models.
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www.nber.org

Labor Market Effects of California’s $20 Fast-Food Minimum Wage

Founded in 1920, the NBER is a private, non-profit, non-partisan organization dedicated to conducting economic research and to disseminating research findings among academics, public policy makers, and business professionals.
www.nber.org www.nber.org
 
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