California Fast-Food Minimum Wage Linked to Job Losses, Price Increases

California's $20 minimum wage for fast-food workers has sparked a heated debate regarding its economic impact, with conflicting studies emerging. A recent analysis from the UC Berkeley Center on Wage and Employment Dynamics indicates that the wage increase has not led to significant job losses or drastic price hikes, reporting only a 1.5% increase in menu prices. In contrast, a study by the Berkeley Research Group, commissioned by the Service Employees International Union, claims the wage hike resulted in the loss of over 10,000 jobs and a 14.5% rise in food prices. Proponents argue that the wage increase is necessary to address California's high living costs, while critics contend it has led to increased automation and operational challenges for restaurants. As discussions continue, a state board is considering a further 3.5% pay increase, which is met with opposition from small business owners who fear additional financial burden. The situation remains contentious, with ongoing scrutiny of the economic outcomes of the wage policy.