The minimum wage in California has been announced to increase, but despite such good news, negative impacts on customers may also happen.
With the recent announcement of the increase in the minimum wage in California, fast-food restaurants are required to pay a certain amount per hour starting April 2024. (Photo: Eddy)
An Increase Of Minimum Wage In California
The minimum wage in California is set to increase by 50 cents to $16 an hour. With the recent increase in the minimum wage in California, fast-food restaurants are required to pay $20 an hour by April 2024.
Economists suggest that the increase in minimum wage in California could have various impacts on customers. The increase in minimum wage in California could have impacts such as longer lines, lower hygiene standards, and potentially higher prices.
Additionally, according to a published article by ABC30, aside from the increase in the minimum wage in California, there are estimates of up to 50,000 job losses in California, as exemplified by a Pizza Hut location in the South Valley that has already laid off its delivery drivers. Marvin William Lopez Rangel, one of the affected drivers, feels betrayed by the company and believes the increase in the minimum wage in California is the reason behind the layoffs.
He expresses concerns about his colleagues and their ability to support their families, emphasizing the importance of businesses in the community. Pizza Hut has acknowledged the cutbacks and expects the layoffs to begin in mid-February.
Ongoing Debate Regarding The Minimum Wage In The U.S.
In a published article by the Brookings Institution, the ongoing debate over the minimum wage in the US revolves around the belief that raising it would improve the financial status of low-paid workers, consequently reducing poverty rates.
Critics argue that only a small percentage of workers receive the minimum wage, with many of them being affluent teenagers, and question the impact of an increase. However, it is crucial to note that a significant number of low-wage workers who earn slightly above the minimum wage would also be affected.
Economist Arin Dube points out that the proportion of low-wage workers who are teenagers has significantly decreased over the years. The Hamilton Project’s economic analysis suggests that a minimum wage increase could impact up to 35 million workers, or 29.4% of the workforce when considering near-minimum wage workers as well.
This analysis focuses solely on the potential wage effects and does not address the employment consequences or the issue of the job gap in the country.
