On Thursday, The National Review posted an article about the impact of the increase in wages for fast-food employees in California.
The article reports:
California’s fast food industry shed more than 6,000 jobs after Democratic lawmakers passed a bill mandating a $20 minimum wage for most fast food and counter service restaurants in the state, according to a new analysis of labor data.
The article includes the following chart:
The fast food minimum wage hike — a 25 percent jump over the $16 minimum wage in place for virtually every other sector of the California economy — was the result of a years-long campaign by Big Labor leaders and their Democratic allies to target an industry they’ve long struggled to organize.
In 2022, California Democrats passed the Fast Food Accountability and Standards Recovery Act, or FAST Act, which would have created an unelected fast food council that could have hiked the industry’s minimum wage to $22 an hour. The restaurant industry fought back, gathering enough signatures for a ballot initiative to challenge the act. But Democrats had a fallback plan of their own; last year, for the first time in two decades, they funded what is known as the Industrial Welfare Commission, which has the authority to regulate wages, hours, and working conditions for industries across the state.
The minimum wage was established to give new workers (generally young workers) a chance to enter the workforce. The idea was that these workers would learn the basic skills needed to keep a job and advance in their careers–showing up on time, paying attention to what they were doing, developing a solid work ethic, etc. The minimum wage was never intended as a permanent state of employment. In raising the minimum wage to a supposed ‘living wage,’ politicians are keeping new workers out of the workforce because companies cannot afford to hire them. Theoretically, a worker ads value to a company–a worker is expected to create more value than the salary he receives. Artificially raising the minimum wage negates that principle.